The correct answer is Microsoft Purview Communication Compliance. This solution is specifically built to detect and remediate insider trading signals by automatically scanning emails and Microsoft Teams messages for configurable sensitive information types, such as the keyword phrase 'non-public material information,' and then flagging them for compliance review. Crucially, it also enforces remediation actions like removing violating messages from recipients' inboxes, which directly addresses the firm’s need to contain potential insider trading communications. On the SC-900 exam, this scenario tests your understanding of how Communication Compliance differs from other Purview solutions like Data Loss Prevention or eDiscovery—a common trap is confusing it with DLP, which prevents data leaks but does not remove messages from inboxes. Remember the memory tip: “Communication Compliance catches the conversation, DLP catches the file.”
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. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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 monitor employee communications (email and Microsoft Teams) for potential insider trading. The compliance team wants to automatically detect messages containing specific financial keywords (e.g., 'non-public material information') and flag them for review. They also need to be able to remove violating messages from recipients' inboxes. Which Microsoft Purview solution should they configure?
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 correct solution because it is specifically designed to detect and remediate inappropriate communications, including insider trading signals. It can automatically scan emails and Microsoft Teams messages for configurable sensitive information types (e.g., 'non-public material information') and enforce actions like removing violating messages from recipients' inboxes.
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.
✗
Data Lifecycle Management
Why it's wrong here
Data Lifecycle Management manages retention and deletion policies, not communication monitoring.
✓
Communication Compliance
Why this is correct
Communication Compliance detects policy violations in messages and allows actions like removal.
Related concept
Read the scenario before looking for a memorised answer.
✗
Insider Risk Management
Why it's wrong here
Insider Risk Management detects risky user activities and behaviors, not specific keyword monitoring in communications.
✗
Audit
Why it's wrong here
Audit provides logs of user activities but does not automatically flag messages based on content.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is confusing Communication Compliance (which detects and remediates message content) with Insider Risk Management (which focuses on behavioral analytics and risk scoring), leading candidates to choose the latter despite its inability to perform keyword-based message removal.
Trap categories for this question
Keyword trap
Insider Risk Management detects risky user activities and behaviors, not specific keyword monitoring in communications.
Detailed technical explanation
How to think about this question
Communication Compliance uses trainable classifiers and sensitive information types (e.g., built-in 'U.S. Insider Trading' model) to evaluate message content in Exchange Online and Microsoft Teams. When a policy match occurs, it can automatically apply retention labels, quarantine the message, or remove it from recipients' inboxes via eDiscovery actions. This solution integrates with Microsoft 365's unified audit log for downstream forensic analysis.
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.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-900 question in full detail.
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 correct solution because it is specifically designed to detect and remediate inappropriate communications, including insider trading signals. It can automatically scan emails and Microsoft Teams messages for configurable sensitive information types (e.g., 'non-public material information') and enforce actions like removing violating messages from recipients' inboxes.
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.
About these practice questions
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These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. 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?
hard
✓ A.Communication Compliance
B.Data Lifecycle Management
C.eDiscovery (Standard)
D.Insider Risk Management
Why A: 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.
Last reviewed: Jun 11, 2026
Question Discussion
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