The answer is that Microsoft Purview DLP policies can perform the actions of blocking unauthorized sharing, sending policy tip notifications to users, and applying encryption via sensitivity labels. These three actions are correct because DLP policies are designed to prevent data loss by controlling how sensitive information is shared or used, not by managing the lifecycle of files. For instance, when a user attempts to share a document containing credit card numbers, the policy can block the action, notify the user with a tip, and automatically encrypt the file using a sensitivity label to protect it. On the SC-900 exam, this question tests your understanding of DLP’s enforcement capabilities versus retention or audit features—a common trap is confusing DLP with retention policies, which can delete or move files, or with the Audit feature, which logs events but does not take direct action. Remember the mnemonic “Block, Notify, Encrypt” to recall the three core actions of DLP policies.
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. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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.
Which THREE actions can be performed by Microsoft Purview Data Loss Prevention (DLP) policies?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Send notification to users
DLP policies can block sharing, send notifications, and apply encryption (e.g., via sensitivity labels). DLP cannot automatically delete or move files; that is for retention policies. DLP does not create audit reports directly; audit logs are generated by the Audit feature.
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.
✗
Create audit reports of policy matches
Why it's wrong here
DLP generates activity logs, but audit reports are separate.
✓
Send notification to users
Why this is correct
DLP can show policy tips and send email notifications.
Related concept
Read the scenario before looking for a memorised answer.
✓
Block sharing of sensitive data
Why this is correct
DLP can block sharing actions.
Related concept
Read the scenario before looking for a memorised answer.
✗
Automatically delete files containing sensitive data
Why it's wrong here
DLP does not automatically delete files.
✓
Apply encryption via sensitivity labels
Why this is correct
DLP can auto-apply sensitivity labels that enforce encryption.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Detailed technical explanation
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
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.
Use explanations to understand the rule behind the answer.
TExam Day Tips
→Underline the problem statement mentally.
→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.
Identify which SC-900 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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: Send notification to users — DLP policies can block sharing, send notifications, and apply encryption (e.g., via sensitivity labels). DLP cannot automatically delete or move files; that is for retention policies. DLP does not create audit reports directly; audit logs are generated by the Audit feature.
What should I do if I get this SC-900 question wrong?
Identify which SC-900 exam domain this question belongs to, then review the specific concept being tested. Practise related questions in that domain and focus on understanding why each wrong answer is tempting — not just why the correct answer is right.
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. Which THREE actions can Microsoft Purview Data Loss Prevention (DLP) policies perform when a sensitive data match is detected?
hard
A.Apply a retention label
✓ B.Encrypt the content automatically
✓ C.Block the sharing of the content
✓ D.Send a notification to the user
E.Delete the content permanently
Why B: Microsoft Purview DLP policies can automatically encrypt content when a sensitive data match is detected, typically using Azure Information Protection (AIP) or Microsoft 365 Message Encryption. This action helps protect the data by restricting access to authorized users only, even if the content is shared externally.
Variation 2. Which THREE actions can be performed using a Microsoft Purview Data Loss Prevention (DLP) policy?
medium
✓ A.Notify users via policy tip when they try to share sensitive data
✓ B.Block sharing of sensitive data with external users
C.Automatically retain emails for 7 years
D.Encrypt emails containing sensitive data
✓ E.Apply a sensitivity label automatically
Why A: Options A, C, and D are correct. DLP policies can block sharing of sensitive data, notify users with policy tips, and automatically apply sensitivity labels. Option B is wrong because automatic retention is managed by retention policies, not DLP. Option E is wrong because encryption is applied by sensitivity labels, not DLP directly.
Last reviewed: Jun 21, 2026
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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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