- A
Communication Compliance
Correct. Communication Compliance is designed for monitoring and reviewing electronic communications to detect risks like market abuse, regulatory violations, and inappropriate content.
- B
Data Lifecycle Management
Why wrong: Incorrect. Data Lifecycle Management governs retention and deletion of data, not surveillance or scanning of communications.
- C
eDiscovery (Standard)
Why wrong: Incorrect. eDiscovery is used for searching and preserving content for legal cases, not for proactive compliance monitoring of communications.
- D
Insider Risk Management
Why wrong: Incorrect. Insider Risk Management focuses on identifying, investigating, and acting on insider threats such as data theft or sabotage, not specifically on communication surveillance for market abuse.
SC-900 Practice Question: Describe the capabilities of Microsoft compliance solutions
This SC-900 practice question tests your understanding of describe the capabilities of microsoft compliance solutions. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A financial services company uses Microsoft Purview and must comply with a regulation that requires communication surveillance for market abuse. They need to capture all electronic communications (email, Teams chats) of traders and scan for specific keywords and trading patterns. Which Microsoft Purview solution is specifically designed for this?
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
Communication Compliance
Communication Compliance is the Microsoft Purview solution specifically designed to capture and analyze electronic communications (email, Teams chats) for regulatory compliance, such as detecting market abuse. It allows organizations to define policies that scan for specific keywords and trading patterns, automatically flagging messages that violate compliance rules. This directly addresses the requirement for communication surveillance in financial services under regulations like MiFID II or Dodd-Frank.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Communication Compliance
Why this is correct
Correct. Communication Compliance is designed for monitoring and reviewing electronic communications to detect risks like market abuse, regulatory violations, and inappropriate content.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Data Lifecycle Management
Why it's wrong here
Incorrect. Data Lifecycle Management governs retention and deletion of data, not surveillance or scanning of communications.
- ✗
eDiscovery (Standard)
Why it's wrong here
Incorrect. eDiscovery is used for searching and preserving content for legal cases, not for proactive compliance monitoring of communications.
- ✗
Insider Risk Management
Why it's wrong here
Incorrect. Insider Risk Management focuses on identifying, investigating, and acting on insider threats such as data theft or sabotage, not specifically on communication surveillance for market abuse.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is confusing Communication Compliance with Insider Risk Management, as both deal with user behavior, but Communication Compliance is specifically for capturing and scanning communications for regulatory surveillance, while Insider Risk Management focuses on broader risk indicators like data theft or policy violations.
Detailed technical explanation
How to think about this question
Communication Compliance uses machine learning classifiers and trainable classifiers to detect patterns like insider trading language or specific financial terms, and can integrate with Microsoft 365 connectors to ingest data from third-party sources (e.g., Bloomberg chat). Under the hood, it leverages the Microsoft 365 audit log and content search capabilities to apply retention and supervision policies, with a built-in review workflow for designated supervisors. In a real-world scenario, a bank might configure a policy to scan for terms like 'front-running' or 'wash trading' across all trader Teams chats and emails, with automatic escalation to compliance officers.
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.
TExam Day Tips
- 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.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A cloud solutions architect for a retail company is evaluating services for a new workload. The correct answer here reflects best practice for the specific scenario described — not a general cloud recommendation. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Cloud exam questions reward reading the constraint carefully: the same technology can be right or wrong depending on the use case.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this SC-900 question test?
Describe the capabilities of Microsoft compliance solutions — This question tests Describe the capabilities of Microsoft compliance solutions — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Communication Compliance — Communication Compliance is the Microsoft Purview solution specifically designed to capture and analyze electronic communications (email, Teams chats) for regulatory compliance, such as detecting market abuse. It allows organizations to define policies that scan for specific keywords and trading patterns, automatically flagging messages that violate compliance rules. This directly addresses the requirement for communication surveillance in financial services under regulations like MiFID II or Dodd-Frank.
What should I do if I get this SC-900 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
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.
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