SC-900 Practice Question: Describe the capabilities of Microsoft compliance solutions
A company uses Microsoft 365 and needs to automatically detect documents in SharePoint Online that contain personally identifiable information (PII) such as social security numbers. When such documents are detected, they want to apply a sensitivity label that encrypts the document and restricts access to only the compliance team. Which Microsoft Purview solution should they use?
⚠ Common exam trap
Watch out — candidates often confuse DLP with Data Lifecycle Management or Records Management, thinking those solutions handle content classification, but DLP is the only one that combines real-time content inspection with automated label application for protection.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Data Loss Prevention (DLP)
Microsoft Purview Data Loss Prevention (DLP) is the correct solution because it can automatically scan documents in SharePoint Online for sensitive information types (e.g., social security numbers) using built-in or custom sensitive info types. When a match is found, DLP policies can trigger an action to apply a sensitivity label that encrypts the document and restricts access, such as limiting it to the compliance team. This combines content detection with automated protection, which is exactly the scenario described.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Data Lifecycle Management
Why it's wrong here
Data Lifecycle Management (DLM) focuses on governing data throughout its entire lifecycle, primarily through retention and deletion policies. Its purpose is to ensure data is kept for the required duration for regulatory or business needs, and then disposed of properly. DLM does not automatically scan content for sensitive information types or apply protective actions like encryption based on detected sensitivity; it manages data based on its age, location, or other metadata.
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Records Management
Why it's wrong here
Records Management is a specialized aspect of Data Lifecycle Management, specifically designed to declare certain items as immutable records. This prevents their modification or deletion to meet legal, regulatory, or historical preservation requirements. While crucial for compliance, Records Management does not actively scan documents for sensitive content like PII or financial data, nor does it apply dynamic protection mechanisms such as encryption based on content analysis.
- ✓
Data Loss Prevention (DLP)
Why this is correct
Data Loss Prevention (DLP) is the correct solution as it proactively identifies, monitors, and protects sensitive information across Microsoft 365 services, including SharePoint. DLP policies leverage sensitive information types, trainable classifiers, and exact data match to automatically detect specific content (e.g., PII, credit card numbers). Upon detection, DLP can enforce various actions, such as blocking sharing, encrypting files, or notifying administrators, thereby preventing unauthorized disclosure and protecting sensitive data.
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Communication Compliance
Why it's wrong here
Communication Compliance is designed to help organizations detect, investigate, and act on inappropriate or policy-violating messages within internal and external communications. It monitors platforms like Exchange email, Microsoft Teams, and Yammer for issues such as harassment, insider trading, or regulatory non-compliance. However, its primary function is not to scan documents stored in SharePoint for sensitive data protection or to apply encryption based on content analysis.
Go deeper
Related to this question
Learn chapter
Core Security Concepts
Key term
Sensitivity label
A sensitivity label is a metadata tag applied to digital content that classifies the content's level of confidentiality and governs how it can be shared, protected, and accessed.
Key term
DLP
Data Loss Prevention — security technology that detects and prevents unauthorised transmission of sensitive data outside an organisation.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This SC-900 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the SC-900 exam.