SC-900 Practice Question: Describe the concepts of security, compliance, and identity
A financial company processes stock trades. To ensure that a trader cannot later deny having submitted a specific trade order, the system captures a digital signature from the trader for each order. Which security goal is being addressed by this practice?
⚠ Common exam trap
Many candidates confuse integrity with non-repudiation, but integrity only ensures data hasn't been tampered with, while non-repudiation specifically provides cryptographic proof of origin and action.
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
✓
Non-repudiation
Non-repudiation ensures that a party cannot deny having performed a specific action. By capturing a digital signature from the trader for each trade order, the system creates cryptographic proof that the trader indeed submitted that order. This prevents the trader from later claiming they did not authorize the trade, directly addressing the non-repudiation goal.
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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Confidentiality
Why it's wrong here
Digital signatures primarily utilize cryptographic hashing and asymmetric encryption to verify the authenticity and integrity of a message or transaction. While the signer's private key must remain confidential for the signature to be secure, the signature itself does not encrypt the message content. Therefore, it does not prevent unauthorized parties from viewing the data, which is the core objective of confidentiality.
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Integrity
Why it's wrong here
Digital signatures provide robust integrity by generating a unique cryptographic hash of the message, which is then encrypted with the sender's private key. This ensures that any alteration to the message after it has been signed will invalidate the signature upon verification, thereby detecting tampering. However, while integrity is a foundational component, the scenario's emphasis on preventing the denial of actions points to a broader requirement than just detecting data modification.
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Availability
Why it's wrong here
Availability in cybersecurity ensures that authorized users have timely and reliable access to information and systems when needed. This is typically achieved through measures like system redundancy, robust network infrastructure, and disaster recovery planning. Digital signatures, being a cryptographic control focused on authentication and data authenticity, do not directly contribute to the uptime, accessibility, or resilience of financial trading platforms or their underlying data.
- ✓
Non-repudiation
Why this is correct
Non-repudiation is the assurance that a party cannot legitimately deny having performed a specific action or sent a particular message. In the context of financial stock trades, a digital signature cryptographically binds the unique identity of the trader (via their private key) to the specific trade instruction. This creates undeniable, legally admissible proof that the trader authorized and executed that particular transaction, preventing them from later disavowing their actions.
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Related to this question
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Core Security Concepts
Key term
Security
Security in IT is the practice of protecting systems, networks, and data from unauthorized access, damage, or theft.
Key term
Non-repudiation
Non-repudiation is a security principle that ensures a party in a digital transaction cannot deny their involvement or the authenticity of their digital signature.
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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.