SC-900 Practice Question: Describe the capabilities of Microsoft security solutions
A company uses Microsoft Purview to classify and label data. The compliance team needs to automatically apply a 'Highly Confidential' sensitivity label to any document containing a passport number that is stored in SharePoint Online. The label should also encrypt the document. What should the compliance team configure?
⚠ Common exam trap
Test-takers frequently confuse DLP policies (which block or alert on data in motion) with auto-labeling policies (which apply labels and encryption to data at rest), leading candidates to choose DLP when the requirement is to classify and protect stored documents.
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
✓
Create an auto-labeling policy for sensitivity labels
Microsoft Purview auto-labeling policies can automatically apply sensitivity labels to documents based on conditions such as the presence of sensitive information types (e.g., passport numbers). When configured, the policy can also enforce encryption as part of the label's protection settings, ensuring that any document stored in SharePoint Online containing a passport number is automatically labeled 'Highly Confidential' and encrypted.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Create a retention label with a retention rule
Why it's wrong here
Retention labels govern how long content is kept and when it is deleted, not classification or encryption. Automatic application based on passport-number detection plus encryption requires an auto-labelling sensitivity label. Retention labels are correct for records-management retention or deletion obligations.
- ✓
Create an auto-labeling policy for sensitivity labels
Why this is correct
An auto-labelling policy for sensitivity labels scans SharePoint Online content for the passport-number sensitive information type, then automatically applies the 'Highly Confidential' label. Because the label itself carries encryption configured in Microsoft Purview, that protection is enforced on matching documents, satisfying both the automatic classification and encryption requirements.
- ✗
Create a data loss prevention (DLP) policy
Why it's wrong here
DLP policies block sharing but do not apply labels.
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Create a manual sensitivity label and train users
Why it's wrong here
Manual labelling depends on users recognising passport numbers and applying the label themselves, so coverage is inconsistent and no automatic detection occurs. Auto-labelling applies the label and encryption at detection. Manual labels suit small, static content sets where user judgement is reliable.
Go deeper
Related to this question
Learn chapter
Exact Data Match for Sensitive Info Types
Key term
Policy
A policy is a set of rules or guidelines that defines how an organization manages, secures, and operates its IT systems and services.
Key term
Compliance
Compliance is the process of ensuring that an organization follows laws, regulations, standards, and internal policies that apply to its operations and data handling.
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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.