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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. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. 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.

A healthcare organization subject to HIPAA regulations stores patient health information (PHI) in SharePoint Online and OneDrive. The compliance team needs to automatically detect and classify medical record numbers and other PHI when documents are uploaded. Detected sensitive content must be protected by encryption and restricted to authorized users only. Additionally, the team wants to prevent users from sharing such documents externally. Which TWO Microsoft Purview solutions should they combine to achieve these requirements? (Choose two.)

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

Microsoft Purview Data Loss Prevention (DLP)

Microsoft Purview Information Protection (B) enables automatic classification and labeling of sensitive data like medical record numbers and PHI based on sensitive info types or trainable classifiers. Microsoft Purview Data Loss Prevention (A) then enforces policies to apply encryption, restrict access to authorized users, and block external sharing of labeled documents. Together, they meet the requirements for detection, protection, and sharing prevention.

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 Data Loss Prevention (DLP)

    Why this is correct

    DLP can be configured to detect sensitive health information (via sensitive info types) and trigger actions such as blocking sharing or applying a label. This meets the detection and prevention requirements.

    Related concept

    Read the scenario before looking for a memorised answer.

  • Microsoft Purview Information Protection

    Why this is correct

    Information Protection (sensitivity labels) can automatically encrypt documents and restrict access to authorized users. This meets the protection and restriction requirements.

    Related concept

    Read the scenario before looking for a memorised answer.

  • Microsoft Purview Communication Compliance

    Why it's wrong here

    Communication Compliance monitors emails and Teams messages for policy violations like harassment, not for automatic classification and protection of stored documents.

    When this WOULD be correct

    An organization needs to monitor employee communications (e.g., email, Teams) for policy violations such as harassment, confidential information leaks, or regulatory compliance breaches (e.g., FINRA). In that scenario, Communication Compliance would be the correct solution.

  • Microsoft Purview Data Lifecycle Management

    Why it's wrong here

    Data Lifecycle Management manages retention and deletion policies, not detection, classification, or encryption of sensitive content.

    When this WOULD be correct

    A question requiring automatic retention or deletion of documents after a specified period (e.g., retaining medical records for 6 years per HIPAA) would make Data Lifecycle Management the correct answer.

Option-by-option analysis

Why each answer is right or wrong

Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The SC-900 exam frequently reuses these exact scenarios with slightly different constraints.

Microsoft Purview Data Loss Prevention (DLP)Correct answer

Why this is correct

DLP can be configured to detect sensitive health information (via sensitive info types) and trigger actions such as blocking sharing or applying a label. This meets the detection and prevention requirements.

Microsoft Purview Communication ComplianceWrong answer — click to see why

Why this is wrong here

Communication Compliance focuses on detecting policy violations in communications (e.g., inappropriate language, insider trading) rather than automatically detecting and protecting PHI in documents. It does not provide encryption or access restrictions for sensitive content.

★ When this WOULD be the correct answer

An organization needs to monitor employee communications (e.g., email, Teams) for policy violations such as harassment, confidential information leaks, or regulatory compliance breaches (e.g., FINRA). In that scenario, Communication Compliance would be the correct solution.

Why candidates choose this

Candidates may confuse 'compliance' with data protection, assuming Communication Compliance handles all compliance-related tasks, including detecting sensitive data in documents, due to its name and general compliance focus.

Microsoft Purview Data Lifecycle ManagementWrong answer — click to see why

Why this is wrong here

Data Lifecycle Management manages retention and deletion of data based on policies, but does not detect, classify, or protect sensitive content like PHI, nor does it prevent external sharing.

★ When this WOULD be the correct answer

A question requiring automatic retention or deletion of documents after a specified period (e.g., retaining medical records for 6 years per HIPAA) would make Data Lifecycle Management the correct answer.

Why candidates choose this

Candidates may confuse data lifecycle management with data protection, assuming that managing data over time includes security controls, but DLM focuses on retention and disposal, not classification or encryption.

Analysis generated from the official SC-900blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”

Common exam traps

Common exam trap: answer the scenario, not the keyword

The trap here is that candidates may confuse Communication Compliance (which monitors communications) with DLP or Information Protection, or assume Data Lifecycle Management handles classification, but it only manages retention and deletion.

Detailed technical explanation

How to think about this question

Under the hood, Information Protection uses Azure Information Protection (AIP) unified labeling client and built-in sensitivity labels with conditions based on sensitive info types (e.g., U.S. medical record number regex) or trainable classifiers. DLP policies can then reference these labels to trigger actions like automatic encryption via Azure Rights Management (RMS) and block external sharing at the tenant level via SharePoint Online sharing policies. A subtle behavior: DLP rules can apply encryption only if the document is labeled first, so the two solutions must be configured in sequence.

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 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.

Quick reference

Common DNS Record Types

RecordPurposeExample
AIPv4 address mappingexample.com → 93.184.216.34
AAAAIPv6 address mappingexample.com → 2606:2800::1
CNAMEAlias to another hostnamewww → example.com
MXMail server for domainexample.com → mail.example.com (priority 10)
TXTText data (SPF, DKIM, verification)v=spf1 include:_spf.example.com ~all
NSAuthoritative name serversexample.com NS ns1.example.com
PTRReverse DNS (IP → hostname)34.216.184.93.in-addr.arpa → example.com
SOAZone authority recordPrimary NS, admin email, serial, TTL defaults

What to study next

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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: Microsoft Purview Data Loss Prevention (DLP) — Microsoft Purview Information Protection (B) enables automatic classification and labeling of sensitive data like medical record numbers and PHI based on sensitive info types or trainable classifiers. Microsoft Purview Data Loss Prevention (A) then enforces policies to apply encryption, restrict access to authorized users, and block external sharing of labeled documents. Together, they meet the requirements for detection, protection, and sharing prevention.

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.

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Last reviewed: Jun 11, 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.