Question 934 of 1,250
SC-900 Practice Question: Describe the capabilities of Microsoft compliance solutions
An organization wants to allow users to classify documents as 'Public', 'Internal', 'Confidential', or 'Highly Confidential' with different levels of protection. Which Microsoft Purview solution should they use?
⚠ Common exam trap
Many candidates confuse Data Loss Prevention (DLP) with classification labels, as DLP also protects data but does not provide the granular, user-selectable classification levels described in the question.
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
✓
Sensitivity labels
Sensitivity labels in Microsoft Purview Information Protection allow organizations to classify and protect documents and emails by applying labels such as 'Public', 'Internal', 'Confidential', or 'Highly Confidential'. These labels can enforce encryption, visual markings (headers/footers/watermarks), and access restrictions based on the classification level, directly meeting the requirement for different levels of protection.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Sensitivity labels
Why this is correct
Sensitivity labels allow organizations to classify and protect data at the document or email level directly by users. When applied, these labels enforce predefined protection actions such as encryption, visual markings (headers, footers, watermarks), and access restrictions, ensuring that sensitive information is handled appropriately throughout its lifecycle, even when shared externally.
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Data Loss Prevention (DLP)
Why it's wrong here
Data Loss Prevention (DLP) policies are designed to identify, monitor, and protect sensitive information across various locations and applications by detecting specific content. While DLP can prevent the unauthorized sharing of classified data, its primary function is to enforce rules *after* data is created or attempted to be shared, rather than providing a mechanism for users to proactively classify documents themselves.
- ✗
Communication compliance
Why it's wrong here
Communication compliance solutions are primarily used to detect and remediate inappropriate content in organizational communications, such as harassment, threats, or regulatory violations. It focuses on monitoring user interactions and content within platforms like Microsoft Teams or Exchange, rather than empowering users to apply classification labels directly to documents for protection or governance.
- ✗
Retention policies
Why it's wrong here
Retention policies are established to manage the lifecycle of information by defining how long specific types of data should be kept or deleted. While they are crucial for compliance and data governance, their purpose is to apply rules for data retention or disposal *after* content has been created, not to provide a user-facing tool for classifying documents based on their sensitivity or content at the point of creation.
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Last reviewed: Jul 4, 2026
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