The answer is Microsoft Purview Data Loss Prevention (DLP). This is the correct feature because DLP policies are specifically designed to detect sensitive data like financial account numbers in emails, then automatically block the message while displaying a policy tip to the sender. Crucially, DLP supports an override mechanism that lets users provide a business justification to bypass the block, and it generates detailed incident reports for compliance review. On the SC-900 exam, this scenario tests your understanding of how DLP differs from other Purview tools—a common trap is confusing it with Microsoft Purview Message Encryption (which secures emails but doesn’t block them) or Communication Compliance (which monitors for policy violations but doesn’t enforce real-time blocking). Remember that DLP is the only solution that combines detection, blocking with override, and reporting in one policy. A helpful memory tip: DLP stands for “Data Loss Prevention,” and in this case, it prevents loss by blocking the data, then allowing a justified override—think “Block, Justify, Report.”
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. 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, Fabrikam Inc., uses Microsoft 365 and has Microsoft Purview licensed. You need to implement a compliance solution to monitor and prevent the sharing of confidential financial data via email. Specifically, you want to: (1) Detect when users send emails containing financial account numbers (e.g., credit card numbers) to external recipients. (2) Automatically block such emails with a policy tip notifying the sender. (3) Allow the sender to override the block if they provide a business justification. (4) Create a report of all blocked emails for compliance review. Which Microsoft Purview feature should you configure?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Microsoft Purview Data Loss Prevention (DLP)
Microsoft Purview Data Loss Prevention (DLP) policies can detect sensitive information in emails and apply actions such as block with policy tip and allow override with justification. DLP also provides incident reports. Option A is for email encryption, not blocking. Option B is for communication monitoring, not data protection. Option C is for retention, not real-time blocking.
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.
✗
Microsoft Purview Communication Compliance
Why it's wrong here
Incorrect: Communication Compliance monitors for policy violations but does not block emails in real-time.
✗
Microsoft Purview Message Encryption
Why it's wrong here
Incorrect: Message Encryption protects emails in transit, but does not block or provide policy tips.
✓
Microsoft Purview Data Loss Prevention (DLP)
Why this is correct
Correct: DLP policies can detect sensitive data, block emails, show policy tips, and allow override with justification.
Related concept
Read the scenario before looking for a memorised answer.
✗
Microsoft Purview Data Lifecycle Management
Why it's wrong here
Incorrect: Data Lifecycle Management handles retention and deletion, not real-time blocking.
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: Microsoft Purview Data Loss Prevention (DLP) — Microsoft Purview Data Loss Prevention (DLP) policies can detect sensitive information in emails and apply actions such as block with policy tip and allow override with justification. DLP also provides incident reports. Option A is for email encryption, not blocking. Option B is for communication monitoring, not data protection. Option C is for retention, not real-time blocking.
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
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 →
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. A healthcare organization uses Microsoft 365 and wants to prevent users from sending emails that contain patient health information (PHI) to external recipients. Which Microsoft Purview solution should they implement?
medium
A.Data Lifecycle Management
✓ B.Data Loss Prevention (DLP)
C.Insider Risk Management
D.eDiscovery
Why B: Data Loss Prevention (DLP) is the correct solution because it is specifically designed to detect and prevent the unauthorized sharing of sensitive data, such as patient health information (PHI), via email and other channels. DLP policies can be configured with sensitive information types (e.g., HIPAA-defined PHI patterns) to automatically block or warn users when they attempt to send such data to external recipients.
Variation 2. An organization uses Microsoft 365. They need to prevent users from sharing credit card numbers in emails and Microsoft Teams messages. When a user attempts to share such sensitive information externally, the message should be blocked and the user should receive a policy tip notification. Which Microsoft Purview solution should they configure?
medium
A.Data Lifecycle Management
✓ B.Data Loss Prevention (DLP)
C.Insider Risk Management
D.Information Protection
Why B: Data Loss Prevention (DLP) is the correct solution because it is specifically designed to detect and protect sensitive information, such as credit card numbers, through deep content analysis using built-in sensitive information types. DLP policies can be configured to block the sharing of this data in emails and Microsoft Teams messages and to display a policy tip notification to the user, enforcing compliance in real time.
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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