SC-900 Practice Question: Describe the capabilities of Microsoft security solutions
A company wants to automatically classify documents containing credit card numbers and apply encryption at rest in SharePoint Online. Which Microsoft Purview feature should be used?
⚠ Common exam trap
Test-takers frequently confuse DLP policies with sensitivity labels, assuming DLP can enforce encryption, but DLP only blocks or alerts on policy violations and does not apply encryption at rest.
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
✓
Sensitivity labels with auto-classification
Sensitivity labels with auto-classification can automatically detect sensitive data types such as credit card numbers using built-in or custom sensitive info types, and then apply a label that enforces encryption at rest in SharePoint Online. This meets the requirement of both automatic classification and encryption enforcement without manual user 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.
- ✓
Sensitivity labels with auto-classification
Why this is correct
Sensitivity labels with auto-classification are the correct solution because they leverage content inspection rules, regular expressions, or trainable classifiers to automatically identify sensitive information within documents. Once identified, these labels can apply persistent protective actions such as encryption, visual markings (headers/footers/watermarks), and access restrictions, ensuring data is classified and secured at rest and in transit. This directly fulfills the requirement to automatically classify and protect documents containing sensitive data.
- ✗
eDiscovery
Why it's wrong here
eDiscovery tools within Microsoft Purview are primarily designed for legal and compliance investigations, enabling organizations to search for, preserve, and export electronic data across various Microsoft 365 services. While it can locate documents containing specific content, its function is reactive data retrieval and management for litigation or regulatory requests, not proactive, automated content classification or the application of protective measures like encryption to documents at rest.
- ✗
Microsoft Purview Audit
Why it's wrong here
Microsoft Purview Audit provides a comprehensive record of user and administrator activities across Microsoft 365 services, capturing events like file access, mailbox operations, and policy changes. Its core purpose is to facilitate forensic investigations, compliance monitoring, and security analysis by providing an immutable log of actions, rather than automatically classifying document content or applying encryption for data protection.
- ✗
Data Loss Prevention (DLP) policies
Why it's wrong here
Data Loss Prevention (DLP) policies are designed to identify, monitor, and protect sensitive information from being inappropriately shared, either internally or externally, across various locations and applications. While DLP can detect sensitive content, its primary function is to prevent data exfiltration or misuse through actions like blocking, warning, or notifying, rather than automatically applying persistent classification labels and encryption directly to documents at rest for proactive data protection.
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Microsoft Entra ID
Key term
Labels
Labels are descriptive text or tags attached to IT resources to organize, identify, and manage them based on attributes like purpose, environment, or owner.
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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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.