SC-900 Practice Question: Describe the capabilities of Microsoft compliance solutions
A company wants to automatically apply a 'Confidential' sensitivity label to all documents containing credit card numbers. Which Microsoft Purview feature should be used to create the auto-labeling policy?
⚠ Common exam trap
Many exam-takers confuse Microsoft Purview Data Loss Prevention (DLP) with auto-labeling because both deal with sensitive data, but DLP enforces actions like blocking or alerting, not applying sensitivity labels automatically.
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
✓
Microsoft Purview Auto-labeling policies
Microsoft Purview Auto-labeling policies are specifically designed to automatically apply sensitivity labels to documents and emails based on conditions such as the presence of sensitive information types (e.g., credit card numbers). This feature uses exact data match or pattern-based detection to label content at rest or in transit, fulfilling the requirement without manual intervention.
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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Microsoft Purview Data Loss Prevention
Why it's wrong here
Microsoft Purview Data Loss Prevention (DLP) policies are designed to identify, monitor, and protect sensitive information from being shared inappropriately or leaving organizational boundaries. While DLP can detect sensitive content, its primary actions involve blocking sharing, encrypting files, or sending alerts, rather than automatically applying a sensitivity label for data classification purposes. DLP focuses on preventing data exfiltration or misuse, not on initial content classification.
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Microsoft Purview Communication Compliance
Why it's wrong here
Microsoft Purview Communication Compliance is a solution focused on detecting and remediating violations of an organization's code of conduct and regulatory policies within internal and external communications. It monitors messages for specific policy matches, such as harassment or inappropriate content, and provides tools for review and investigation. This service does not, however, automatically apply sensitivity labels to documents or emails for data classification.
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Microsoft Purview Data Lifecycle Management
Why it's wrong here
Microsoft Purview Data Lifecycle Management (DLM) is primarily concerned with governing the entire lifecycle of data, from creation to disposition, through retention and deletion policies. Its core function is to ensure that data is kept for the necessary period to meet regulatory, legal, and business requirements, and then defensibly disposed of. DLM does not automatically apply sensitivity labels to classify content as confidential.
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Microsoft Purview Auto-labeling policies
Why this is correct
Microsoft Purview Auto-labeling policies are specifically engineered to automatically apply sensitivity labels to content at rest or in transit across Microsoft 365 services. These policies leverage conditions such as sensitive information types, keywords, or trainable classifiers to identify specific content patterns. Upon a match, the designated sensitivity label, like 'confidential,' is automatically applied, ensuring consistent data classification without manual user intervention.
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Microsoft Entra ID
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
Microsoft Purview
Microsoft Purview is a unified data governance and compliance service that helps organizations discover, manage, and protect their data across on-premises, cloud, and hybrid environments.
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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.