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SC-900 Practice Question: Describe the capabilities of Microsoft compliance solutions

Which TWO Microsoft Purview solutions can be used to automatically classify sensitive data at rest?

⚠ Common exam trap

Test-takers frequently confuse Communication Compliance (which monitors communications) with Information Protection (which classifies data), or they think eDiscovery or Auditing can classify data, when in fact they are reactive or investigative tools, not proactive classification solutions.

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

Data Lifecycle Management

Data Lifecycle Management (DLM) automatically classifies sensitive data at rest by applying retention labels based on sensitive content detection, such as credit card numbers or social security numbers, using trainable classifiers or exact data match. Information Protection (IP) extends this by enabling automatic labeling of documents and emails based on sensitive information types, ensuring data is classified and protected while stored in SharePoint, OneDrive, or Exchange Online.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Data Lifecycle Management

    Why this is correct

    Data Lifecycle Management in Microsoft Purview includes retention policies and retention labels. These labels can be configured for automatic application based on sensitive information types, keywords, or trainable classifiers, thereby automatically classifying data at rest to manage its retention and deletion throughout its lifecycle. This ensures compliance without manual intervention.

  • Communication Compliance

    Why it's wrong here

    Communication Compliance is designed to help organizations detect, investigate, and act on inappropriate messages in their internal and external communications. While it monitors content for policy violations, it does not automatically classify data by applying labels or metadata; instead, it flags content for review by human investigators.

  • eDiscovery

    Why it's wrong here

    Microsoft Purview eDiscovery solutions are used to identify, preserve, collect, process, review, and analyze electronically stored information (ESI) for legal or investigative purposes. While it can locate specific data, it is a discovery tool that does not automatically classify or apply sensitivity or retention labels to content; its function is retrieval and analysis, not data categorization.

  • Auditing

    Why it's wrong here

    Microsoft Purview Auditing provides a comprehensive record of user and admin activities across various Microsoft 365 services. Its primary purpose is to track events, such as file access, policy changes, or label applications, for security and compliance investigations. However, Auditing itself is a logging mechanism and does not automatically classify data or apply any form of labeling to content.

  • Information Protection

    Why this is correct

    Microsoft Purview Information Protection (MPIP) enables organizations to discover, classify, and protect sensitive information. Its auto-labeling policies for files at rest in SharePoint, OneDrive, and Exchange, or client-side auto-labeling, automatically classify content based on sensitive information types, regular expressions, or trainable classifiers, applying sensitivity labels without user intervention.

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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