- A
Information Protection auto-labeling
Auto-labeling policies can detect sensitive information types like credit card numbers and apply sensitivity labels automatically.
- B
eDiscovery (Premium)
Why wrong: eDiscovery is for legal discovery and holds, not automatic labeling.
- C
Data Lifecycle Management
Why wrong: Data Lifecycle Management handles retention and deletion, not automatic labeling of sensitive content.
- D
Audit (Premium)
Why wrong: Audit logs activities but does not automatically label content.
Microsoft Purview Information Protection: Auto-Labeling Sensitive Data
This SC-900 practice question tests your understanding of describe the capabilities of microsoft compliance solutions. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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.
Your organization uses Microsoft Purview to manage data governance. You need to ensure that sensitive financial data containing credit card numbers is automatically detected and labeled when stored in SharePoint Online. Which compliance solution should you 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
Information Protection auto-labeling
Microsoft Purview Information Protection auto-labeling is the correct solution because it can automatically detect sensitive data types, such as credit card numbers, using built-in sensitive information types (e.g., Credit Card Number) and apply sensitivity labels to documents in SharePoint Online. This ensures that financial data is classified and protected at rest without manual intervention, aligning with the requirement for automatic detection and labeling.
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.
- ✓
Information Protection auto-labeling
Why this is correct
Auto-labeling policies can detect sensitive information types like credit card numbers and apply sensitivity labels automatically.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
eDiscovery (Premium)
Why it's wrong here
eDiscovery is for legal discovery and holds, not automatic labeling.
- ✗
Data Lifecycle Management
Why it's wrong here
Data Lifecycle Management handles retention and deletion, not automatic labeling of sensitive content.
- ✗
Audit (Premium)
Why it's wrong here
Audit logs activities but does not automatically label content.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse Data Lifecycle Management (retention/deletion) with Information Protection (classification/labeling), or assume eDiscovery can automatically label content, when in fact eDiscovery is purely for search and export in legal contexts.
Detailed technical explanation
How to think about this question
Auto-labeling in Microsoft Purview uses policy-based conditions that evaluate content against sensitive information types (e.g., regex patterns for credit card numbers) and applies sensitivity labels via client-side or service-side labeling. A subtle behavior is that auto-labeling for SharePoint Online can be configured as a simulation mode first, allowing administrators to test detection accuracy before enforcing labeling, which is critical for avoiding false positives in production.
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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Describe the capabilities of Microsoft compliance solutions — study guide chapter
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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: Information Protection auto-labeling — Microsoft Purview Information Protection auto-labeling is the correct solution because it can automatically detect sensitive data types, such as credit card numbers, using built-in sensitive information types (e.g., Credit Card Number) and apply sensitivity labels to documents in SharePoint Online. This ensures that financial data is classified and protected at rest without manual intervention, aligning with the requirement for automatic detection and labeling.
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
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
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. Your organization is implementing Microsoft Purview to manage data governance. You need to classify sensitive data such as social security numbers automatically. What should you create?
easy- A.Data loss prevention policy
- B.Retention label
- ✓ C.Sensitive information type
- D.Trainable classifier
Why C: The correct answer is C: Sensitive information type. Sensitive information types (SITs) are predefined or custom patterns that detect sensitive data like social security numbers automatically. Option A is incorrect because a data loss prevention (DLP) policy uses SITs to enforce actions, but it does not classify data on its own. Option B is incorrect because retention labels manage data retention and disposal, not classification. Option D is incorrect because trainable classifiers require training with sample data to identify content, whereas SITs use pattern matching out of the box.
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Last reviewed: Jul 4, 2026
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