The correct answer is to create a Data Loss Prevention (DLP) policy in Microsoft Purview that detects the sensitive information type 'U.S. Bank Account Number' and automatically applies encryption to emails sent to external recipients, while also configuring a policy tip to notify the sender. This works because a DLP policy can enforce conditional actions—like applying Microsoft Purview Message Encryption—without blocking the email, making it ideal for scenarios where you need to protect sensitive data in transit while maintaining business flow. On the SC-900 exam, this tests your understanding of how DLP policies differ from sensitivity labels and mail flow rules; a common trap is choosing sensitivity labels, which require manual or auto-labeling rather than automatic encryption triggered by content detection. Remember the mnemonic "DLP Does Lock Prying" to recall that DLP policies automatically detect, lock down, and protect sensitive data with encryption and policy tips.
SC-900 Practice Question: Describe the concepts of security, compliance, and identity
This SC-900 practice question tests your understanding of describe the concepts of security, compliance, and identity. Examine the command output carefully: the correct answer depends on what the output actually shows, not on general recall alone. 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.
You are a security administrator for Contoso Ltd., a global financial services company with 5,000 employees. The company uses Microsoft 365 E5 licenses and has deployed Microsoft Entra ID, Microsoft Defender XDR, Microsoft Purview, and Microsoft Intune. Recently, the security team identified a risk: employees are sharing sensitive financial reports via external email recipients without encryption. To address this, you need to implement a solution that automatically applies encryption to emails containing the sensitive information type 'U.S. Bank Account Number' when sent to external recipients. The solution must not block the email but should encrypt it. Additionally, you want to notify the sender with a policy tip that the email will be encrypted. You have access to the Microsoft Purview compliance portal. What should you configure?
Configure an email encryption rule in Microsoft Defender for Office 365.
Why wrong: Defender for Office 365 focuses on threat protection, not DLP.
B
Create a Data Loss Prevention (DLP) policy in Microsoft Purview that detects 'U.S. Bank Account Number' and applies encryption to emails sent to external recipients, with a policy tip.
DLP can automatically apply encryption and show policy tips.
C
Enable Microsoft Purview Message Encryption for all users.
Why wrong: Message Encryption is a feature, but DLP is needed to automate application.
D
Create a sensitivity label with encryption and publish it to all users, then train users to apply it manually.
Why wrong: Manual application does not ensure automatic protection.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Create a Data Loss Prevention (DLP) policy in Microsoft Purview that detects 'U.S. Bank Account Number' and applies encryption to emails sent to external recipients, with a policy tip.
Option A is correct because a DLP policy in Microsoft Purview can be configured to automatically encrypt emails when sensitive data is detected, and it can show policy tips. Option B is incorrect because sensitivity labels require manual application or auto-labeling, but DLP can enforce encryption automatically. Option C is incorrect because email encryption rules in Defender for Office 365 are not as flexible as DLP for this scenario. Option D is incorrect because message encryption is a feature of Microsoft Purview, but DLP is the appropriate policy to automatically apply it based on conditions.
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.
✗
Configure an email encryption rule in Microsoft Defender for Office 365.
Why it's wrong here
Defender for Office 365 focuses on threat protection, not DLP.
✓
Create a Data Loss Prevention (DLP) policy in Microsoft Purview that detects 'U.S. Bank Account Number' and applies encryption to emails sent to external recipients, with a policy tip.
Why this is correct
DLP can automatically apply encryption and show policy tips.
Related concept
Read the scenario before looking for a memorised answer.
✗
Enable Microsoft Purview Message Encryption for all users.
Why it's wrong here
Message Encryption is a feature, but DLP is needed to automate application.
✗
Create a sensitivity label with encryption and publish it to all users, then train users to apply it manually.
Why it's wrong here
Manual application does not ensure automatic protection.
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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
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 concepts of security, compliance, and identity — This question tests Describe the concepts of security, compliance, and identity — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Create a Data Loss Prevention (DLP) policy in Microsoft Purview that detects 'U.S. Bank Account Number' and applies encryption to emails sent to external recipients, with a policy tip. — Option A is correct because a DLP policy in Microsoft Purview can be configured to automatically encrypt emails when sensitive data is detected, and it can show policy tips. Option B is incorrect because sensitivity labels require manual application or auto-labeling, but DLP can enforce encryption automatically. Option C is incorrect because email encryption rules in Defender for Office 365 are not as flexible as DLP for this scenario. Option D is incorrect because message encryption is a feature of Microsoft Purview, but DLP is the appropriate policy to automatically apply it based on conditions.
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.
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