SC-900 Practice Question: Describe the capabilities of Microsoft compliance solutions
An organization needs to automatically apply a 'Confidential' label to documents that contain EU personal data, and also encrypt those documents. Which Microsoft Purview feature should they configure?
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
✓
Auto-labeling policy
Auto-labeling policies can be configured to automatically apply sensitivity labels based on sensitive info types like EU personal data. Sensitivity labels support encryption. Data classification is a prerequisite, but auto-labeling is the feature that applies the label automatically.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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Data Loss Prevention (DLP) policy
Why it's wrong here
A Data Loss Prevention (DLP) policy is designed to identify, monitor, and protect sensitive information across various locations, preventing it from being shared inappropriately or leaving the organization's control. While DLP can block sharing or alert on sensitive content, its primary function is to enforce preventative actions and detect policy violations, not to automatically apply persistent sensitivity labels that include encryption or visual markings to the content itself.
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Retention label policy
Why it's wrong here
A Retention label policy is used to manage the lifecycle of data, ensuring that information is retained for a specific period to meet regulatory, legal, or business requirements, or deleted after its retention period expires. These policies apply retention labels, which dictate how long content is kept or when it's disposed of, but they do not apply sensitivity labels, nor do they provide encryption or other protective measures for the content's confidentiality.
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Data classification service
Why it's wrong here
A data classification service identifies and categorizes sensitive information based on its content, context, or metadata, providing the foundation for information governance. While classification is a crucial step in understanding an organization's data landscape, the service itself typically focuses on the identification and reporting of sensitive data, rather than the automatic application of protective sensitivity labels with associated actions like encryption or access restrictions.
- ✓
Auto-labeling policy
Why this is correct
An auto-labeling policy for sensitivity labels is specifically configured to automatically detect and apply predefined sensitivity labels to content that matches specific conditions, such as the presence of sensitive information types, keywords, or patterns. This capability directly addresses the need to automatically apply a 'confidential' label, which can then enforce protective actions like encryption, visual markings, and access restrictions, ensuring consistent data protection without manual intervention.
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Related to this question
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Microsoft Entra ID
Key term
Labels
Labels are descriptive text or tags attached to IT resources to organize, identify, and manage them based on attributes like purpose, environment, or owner.
Key term
Encryption
Encryption is the process of converting readable data into a secret code to prevent unauthorized access.
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Written by Johnson Ajibi, MSc IT Security
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