- A
Data Classification
Data Classification (including automatic sensitivity labeling) helps identify and label PHI content in SharePoint Online.
- B
Data Loss Prevention (DLP)
DLP policies can detect and prevent unauthorized sharing of files containing PHI, such as through external sharing links.
- C
Insider Risk Management
Why wrong: Insider Risk Management analyzes user activities for potential data exfiltration but does not directly classify or control sharing.
- D
Communication Compliance
Why wrong: Communication Compliance monitors emails and Teams messages for policy violations like harassment, not for data classification or DLP.
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 uses Microsoft Purview to protect patient health information (PHI). They need to identify sensitive data stored in Microsoft SharePoint Online and prevent unauthorized sharing. Which two Purview solutions should they implement? (Select all that apply.)
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
Data Classification
Data Classification (A) is correct because it enables the organization to identify and label sensitive data, such as PHI, stored in SharePoint Online. By applying sensitivity labels or retention labels, the organization can classify content based on its sensitivity, which is a prerequisite for applying protective actions. This allows them to discover where PHI resides and prepare it for further controls.
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 Classification
Why this is correct
Data Classification (including automatic sensitivity labeling) helps identify and label PHI content in SharePoint Online.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Data Loss Prevention (DLP)
Why this is correct
DLP policies can detect and prevent unauthorized sharing of files containing PHI, such as through external sharing links.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Insider Risk Management
Why it's wrong here
Insider Risk Management analyzes user activities for potential data exfiltration but does not directly classify or control sharing.
- ✗
Communication Compliance
Why it's wrong here
Communication Compliance monitors emails and Teams messages for policy violations like harassment, not for data classification or DLP.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Insider Risk Management with Data Loss Prevention, thinking it can prevent data leaks, when in fact it only provides detection and investigation capabilities, not proactive blocking of unauthorized sharing.
Detailed technical explanation
How to think about this question
Data Classification in Microsoft Purview uses trainable classifiers and exact data match (EDM) to automatically detect sensitive information types like PHI (e.g., U.S. Social Security numbers, medical record numbers). Once classified, sensitivity labels can be applied via auto-labeling policies, which then integrate with Data Loss Prevention (DLP) policies to enforce actions like blocking external sharing or applying encryption. In a real-world scenario, a healthcare organization might use a custom sensitive info type for patient IDs and combine it with a DLP rule that prevents sharing any document containing that ID with external users.
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: Data Classification — Data Classification (A) is correct because it enables the organization to identify and label sensitive data, such as PHI, stored in SharePoint Online. By applying sensitivity labels or retention labels, the organization can classify content based on its sensitivity, which is a prerequisite for applying protective actions. This allows them to discover where PHI resides and prepare it for further controls.
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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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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