A financial services company is required by the Payment Card Industry Data Security Standard (PCI-DSS) to retain all documents containing credit card numbers for at least seven years. The compliance team has created a custom sensitive information type (SIT) to detect credit card numbers in Microsoft 365. They want to automatically apply a retention label (e.g., "7-Year Retention") to any document in SharePoint or OneDrive that matches this SIT. Which Microsoft Purview solution should they configure to apply the label automatically based on content?
Answer choices
Why each option matters
Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.
Distractor review
Data Loss Prevention (DLP)
DLP policies are designed to prevent sensitive information from being shared externally or used inappropriately. They can detect credit card numbers but do not automatically apply retention labels. They may show a policy tip or block sharing.
Distractor review
Insider Risk Management
Insider Risk Management helps detect, investigate, and act on risky insider activities like data theft. It does not automatically apply retention labels based on content.
Distractor review
Communication Compliance
Communication Compliance policies monitor communications (email, Teams) for policy violations such as offensive language or regulatory compliance issues. They do not apply retention labels to documents.
Best answer
Data Lifecycle Management
Data Lifecycle Management provides auto-apply retention label policies that can use sensitive information types (SITs) to classify and retain content automatically. This is the correct solution to apply a retention label based on content detection.
Common exam trap
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Technical deep dive
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
- Use explanations to understand the rule behind the answer.
TExam Day Tips
- Underline the problem statement mentally.
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Related practice questions
Related SC-900 practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
More questions from this exam
Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.
Question 1
A company must retain all customer contracts for 10 years to comply with industry regulations. After 10 years, the contracts must be permanently deleted. Which Microsoft Purview solution should be used to automate this process?
Question 2
A company uses a cloud-based SaaS (Software as a Service) application for customer relationship management. According to the shared responsibility model, which security responsibility is primarily handled by the customer?
Question 3
A company runs a mix of on-premises servers and Azure virtual machines. They deploy Microsoft Defender for Endpoint on all servers. The security team wants to create custom queries to hunt for a specific attack pattern that involves a sequence of events across multiple machines, such as a PowerShell script being downloaded and then executed on several servers. They need to write their own detection rules based on advanced hunting data. Which Microsoft 365 Defender capability should they use?
Question 4
A company runs a consumer-facing e-commerce website and wants to allow customers to sign in using their existing social media accounts such as Google, Facebook, or LinkedIn. Which Microsoft Entra ID solution should they implement?
Question 5
A company has a hybrid identity environment with Active Directory synchronizing to Microsoft Entra ID. They want users to be able to reset their own on-premises passwords via the cloud SSPR portal. What is the minimum license required for this capability?
Question 6
A company uses a cloud-based Customer Relationship Management (CRM) system that is delivered as Software-as-a-Service (SaaS). According to the shared responsibility model, which security responsibility is primarily handled by the customer?
FAQ
Questions learners often ask
What does this SC-900 question test?
Read the scenario before looking for a memorised answer.
What is the correct answer to this question?
The correct answer is: Data Lifecycle Management — Microsoft Purview Data Lifecycle Management (formerly known as Microsoft 365 Records Management) allows organizations to define retention labels and automatically apply them based on conditions such as sensitive information types (SITs), trainable classifiers, or keywords. In this scenario, the custom SIT for credit card numbers can trigger the auto-apply policy to assign the retention label, ensuring the documents are retained for the required period and then properly disposed of. This helps meet regulatory obligations like PCI-DSS without manual user intervention.
What should I do if I get this SC-900 question wrong?
Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.
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