- A
Microsoft Purview Data Lifecycle Management
Why wrong: Data Lifecycle Management is used to retain and delete data based on policies (e.g., regulatory retention). It does not provide supervisory review or flagging of specific communication content.
- B
Microsoft Purview Communication Compliance
Communication Compliance enables organizations to capture communications, assign them to reviewers, and use built-in or custom classifiers to detect policy violations such as insider trading code words. It meets all described requirements.
- C
Microsoft Purview Information Protection
Why wrong: Information Protection applies sensitivity labels and encryption to documents and emails. It helps classify and protect data but does not provide a review workflow for communications.
- D
Microsoft Purview Insider Risk Management
Why wrong: Insider Risk Management correlates user activities across Microsoft 365 services to identify potential data leaks or theft. It is not designed for supervisory review of client-advisor communications.
Quick Answer
The answer is Microsoft Purview Communication Compliance. This solution is the correct choice because it is purpose-built to capture and review advisor communications, such as emails and Microsoft Teams messages, to meet supervisory review and client communication compliance mandates. It automatically flags messages containing potential code words for insider trading and routes them to designated supervisors for review, directly addressing the firm’s regulatory requirement for oversight of advisor-client interactions. On the SC-900 exam, this question tests your ability to distinguish between Purview solutions: Communication Compliance handles internal and external communication monitoring, while Audit or eDiscovery focus on different compliance needs. A common trap is confusing it with Data Loss Prevention, which prevents data leaks rather than reviewing communications for policy violations. Remember the memory tip: “Communicate to Comply” — if the scenario involves capturing and reviewing messages between people, think Communication Compliance.
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 firm must comply with regulatory requirements that mandate supervisory review of communications between advisors and clients. They need to automatically capture emails and Microsoft Teams messages from a specific group of advisors, assign them to a supervisor for review, and flag messages containing potential code words for insider trading. Which Microsoft Purview solution should they use?
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
Microsoft Purview Communication Compliance
Microsoft Purview Communication Compliance is the correct solution because it is specifically designed to capture and review communications (email, Teams messages) for regulatory compliance, such as supervisory oversight of advisor-client interactions. It can automatically flag messages containing sensitive keywords or patterns (e.g., potential code words for insider trading) and route them to designated supervisors for review, meeting the firm's regulatory mandate.
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.
- ✗
Microsoft Purview Data Lifecycle Management
Why it's wrong here
Data Lifecycle Management is used to retain and delete data based on policies (e.g., regulatory retention). It does not provide supervisory review or flagging of specific communication content.
- ✓
Microsoft Purview Communication Compliance
Why this is correct
Communication Compliance enables organizations to capture communications, assign them to reviewers, and use built-in or custom classifiers to detect policy violations such as insider trading code words. It meets all described requirements.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Microsoft Purview Information Protection
Why it's wrong here
Information Protection applies sensitivity labels and encryption to documents and emails. It helps classify and protect data but does not provide a review workflow for communications.
- ✗
Microsoft Purview Insider Risk Management
Why it's wrong here
Insider Risk Management correlates user activities across Microsoft 365 services to identify potential data leaks or theft. It is not designed for supervisory review of client-advisor communications.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse the 'capture and review communications' requirement with Insider Risk Management (Option D), which focuses on behavioral analytics and risk scoring rather than direct communication capture and keyword-based flagging.
Detailed technical explanation
How to think about this question
Communication Compliance uses built-in classifiers and custom keyword dictionaries to scan email headers, body, and attachments, as well as Teams messages (including chat and channel conversations), for policy violations. It integrates with eDiscovery and audit logs to provide a full chain of custody for reviewed communications, and supervisors can use a dedicated review dashboard to annotate, escalate, or resolve flagged items. A real-world scenario is a brokerage firm using Communication Compliance to automatically capture all emails and Teams messages from advisors registered with FINRA, flagging terms like 'whisper number' or 'inside tip' for immediate supervisory review.
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: Microsoft Purview Communication Compliance — Microsoft Purview Communication Compliance is the correct solution because it is specifically designed to capture and review communications (email, Teams messages) for regulatory compliance, such as supervisory oversight of advisor-client interactions. It can automatically flag messages containing sensitive keywords or patterns (e.g., potential code words for insider trading) and route them to designated supervisors for review, meeting the firm's regulatory mandate.
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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