- A
Microsoft Purview Data Loss Prevention (DLP)
DLP policies can be configured to scan Exchange Online emails for PHI, automatically block unauthorized sharing, and apply a retention label via an associated policy action. This meets all the stated requirements.
- B
Microsoft Purview Information Protection (sensitivity labels)
Why wrong: Sensitivity labels can classify and protect data manually or via auto-labeling, but they do not natively block email sharing to external recipients. DLP is required for the enforcement action.
- C
Microsoft Purview Data Lifecycle Management (retention policies)
Why wrong: Retention policies and labels manage how long data is kept and when it is deleted, but they do not detect sensitive content or prevent sharing.
- D
Microsoft Purview Audit
Why wrong: Audit logging records events for investigation but does not provide real-time detection or enforcement against sharing PHI.
Quick Answer
The answer is Microsoft Purview Data Loss Prevention (DLP). This is the correct solution because DLP policies can automatically detect protected health information (PHI) like medical record numbers in outgoing email using built-in sensitive info types, block unauthorized external sharing through access restrictions, and apply a six-year retention label via auto-labeling rules or Power Automate integration. On the SC-900 exam, this scenario tests your understanding of how Purview DLP enforces data governance across Exchange Online, and a common trap is confusing DLP with Microsoft Purview Information Protection—remember that DLP handles detection and blocking in transit, while Information Protection focuses on classification and encryption at rest. A helpful memory tip is to think of DLP as the “gatekeeper” that inspects content as it leaves your organization, ensuring PHI stays compliant with HIPAA retention requirements.
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 healthcare organization must comply with HIPAA. They need to automatically detect protected health information (PHI) such as medical record numbers in outgoing email, prevent users from sharing these emails with unauthorized external recipients, and apply a retention label that retains PHI emails for six years. 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 Data Loss Prevention (DLP)
Microsoft Purview Data Loss Prevention (DLP) is the correct solution because it can automatically detect sensitive data like PHI (e.g., medical record numbers) in outgoing emails using built-in or custom sensitive info types, block unauthorized external sharing, and trigger a retention label action via auto-labeling policies to retain the emails for six years. DLP policies integrate with Exchange Online to inspect email content in transit, apply access restrictions, and enforce retention labels through Power Automate or auto-labeling rules.
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 Loss Prevention (DLP)
Why this is correct
DLP policies can be configured to scan Exchange Online emails for PHI, automatically block unauthorized sharing, and apply a retention label via an associated policy action. This meets all the stated requirements.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Microsoft Purview Information Protection (sensitivity labels)
Why it's wrong here
Sensitivity labels can classify and protect data manually or via auto-labeling, but they do not natively block email sharing to external recipients. DLP is required for the enforcement action.
- ✗
Microsoft Purview Data Lifecycle Management (retention policies)
Why it's wrong here
Retention policies and labels manage how long data is kept and when it is deleted, but they do not detect sensitive content or prevent sharing.
- ✗
Microsoft Purview Audit
Why it's wrong here
Audit logging records events for investigation but does not provide real-time detection or enforcement against sharing PHI.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse the detection and blocking capability of DLP with the classification-only capability of Information Protection (sensitivity labels), or they incorrectly think Data Lifecycle Management alone can enforce access controls, when in fact DLP is the only solution that combines content inspection, real-time blocking, and label application in a single policy.
Detailed technical explanation
How to think about this question
DLP policies in Microsoft Purview use sensitive information types (e.g., U.S. Medical Record Number) defined by regex patterns and keyword lists, and they evaluate email content in transit via Exchange Online mail flow rules (transport rules). When a DLP rule matches, it can block the message, notify the user, and apply a retention label through an auto-labeling policy that triggers on the DLP action—this requires the retention label to be published and configured in the DLP rule's 'Actions' section. In a real-world scenario, a healthcare organization might combine DLP with a custom sensitive info type for medical record numbers (e.g., pattern: 9 digits with a checksum) to ensure HIPAA compliance.
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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
What to study next
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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 Data Loss Prevention (DLP) — Microsoft Purview Data Loss Prevention (DLP) is the correct solution because it can automatically detect sensitive data like PHI (e.g., medical record numbers) in outgoing emails using built-in or custom sensitive info types, block unauthorized external sharing, and trigger a retention label action via auto-labeling policies to retain the emails for six years. DLP policies integrate with Exchange Online to inspect email content in transit, apply access restrictions, and enforce retention labels through Power Automate or auto-labeling rules.
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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Same concept, more angles
1 more ways this is tested on SC-900
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 healthcare organization must comply with HIPAA. They need to automatically detect protected health information (PHI) in emails sent from Exchange Online, prevent users from sharing these emails with unauthorized external recipients, and apply a retention label that retains PHI emails for six years. Which Microsoft Purview solution should they configure?
hard- ✓ A.Microsoft Purview Information Protection and Data Loss Prevention
- B.Microsoft Purview eDiscovery
- C.Microsoft Purview Communication Compliance
- D.Microsoft Purview Insider Risk Management
Why A: Microsoft Purview Information Protection and Data Loss Prevention (DLP) is the correct solution because it combines sensitive data classification (to detect PHI via built-in HIPAA data classifiers) with policy-based enforcement (to block sharing with unauthorized external recipients) and can automatically apply a retention label (via auto-labeling policies) to retain PHI emails for six years. This directly addresses all three requirements: detection, prevention, and retention.
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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