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SC-900 Practice Question: Describe the capabilities of Microsoft compliance solutions

A company wants to automatically classify sensitive documents in Microsoft 365 based on credit card numbers and retain them for 7 years. Which two Microsoft Purview solutions should they use together?

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 and retention policies

Sensitivity labels classify and protect content, and retention policies ensure data is kept for the required period. Data Loss Prevention (DLP) prevents sharing but does not retain; eDiscovery is for search and export; insider risk management detects risky activities. Therefore, sensitivity labels and retention policies are the correct combination.

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 and retention policies

    Why this is correct

    Sensitivity labels, a core component of Microsoft Purview Information Protection, enable automatic classification of documents based on their content, such as the presence of credit card numbers, using sensitive information types (SITs). Once documents are classified and labeled, retention policies can be applied to these labels, ensuring the content is retained for a specified duration, like seven years, to meet regulatory or organizational compliance requirements. This combination provides both intelligent identification of sensitive data and its subsequent lifecycle management.

  • Microsoft Purview compliance portal and Microsoft 365 Defender

    Why it's wrong here

    The Microsoft Purview compliance portal and Microsoft 365 Defender are unified management consoles designed for administering and monitoring various security and compliance solutions across an organization. While these portals provide the interface to configure and oversee features like sensitivity labels and retention policies, they are not the underlying mechanisms that perform the actual automatic classification of sensitive documents or enforce specific data retention periods. They serve as the control plane, not the data plane, for these operations.

  • Insider risk management and communication compliance

    Why it's wrong here

    Insider risk management is specifically designed to detect and act on potentially risky activities by users within an organization, such as data exfiltration or policy violations, by analyzing user behavior and signals. Communication compliance focuses on identifying and remediating inappropriate or non-compliant communications within messaging platforms like Microsoft Teams and Exchange. Neither of these solutions are designed for the automatic classification of documents based on their content or for the systematic enforcement of long-term data retention policies across an organization's data estate.

  • Data Loss Prevention (DLP) and eDiscovery

    Why it's wrong here

    Data Loss Prevention (DLP) policies are primarily focused on preventing sensitive information, like credit card numbers, from being inappropriately shared, accessed, or moved outside defined organizational boundaries. While DLP can identify sensitive data, its core function is to block or alert on data egress, not to classify documents for long-term retention. eDiscovery, conversely, is a process for identifying, preserving, collecting, and presenting electronic information for legal or investigative purposes, not for automatically applying and enforcing retention periods on all sensitive documents.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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