- A
Create a DLP policy that blocks external sharing of any document with a custom keyword.
Why wrong: DLP can block sharing, but first you need a sensitivity label to identify the documents.
- B
Create an auto-labeling policy that applies a sensitivity label to documents with medical record numbers.
Why wrong: Auto-labeling applies labels but does not block sharing.
- C
Create a DLP policy that detects medical record numbers and blocks external sharing.
Why wrong: DLP can detect and block, but without a label, it may not be consistent.
- D
Create a sensitive information type for medical record numbers, then an auto-labeling policy to apply a sensitivity label, and finally a DLP policy to block external sharing of labeled documents.
This complete approach ensures classification and protection.
Quick Answer
The correct answer is to first create a sensitive information type for medical record numbers, then an auto-labeling policy to apply a sensitivity label, and finally a Data Loss Prevention (DLP) policy to block external sharing. This sequence is technically required because sensitive information type auto-labeling DLP HIPAA compliance depends on a chain of dependencies: DLP policies can only enforce actions like blocking email sharing by referencing an existing sensitivity label, and auto-labeling policies can only apply that label after a sensitive information type has been defined to detect the ePHI pattern. On the SC-900 exam, this question tests your understanding of the logical order of Microsoft Purview components—a common trap is choosing DLP first, but DLP cannot apply labels or detect content without the preceding steps. Remember the mnemonic **SAD**: Sensitive info type, then Auto-labeling, then DLP—you must build the detection, then the label, then the enforcement.
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. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 work for a healthcare organization that uses Microsoft 365 E5 licenses. The organization must comply with HIPAA regulations. You need to ensure that electronic protected health information (ePHI) is classified and protected. Specifically, you want to automatically detect and apply a 'Highly Confidential' sensitivity label to documents containing medical record numbers, and also prevent users from sharing these documents externally via email. You have Microsoft Purview deployed. What should you implement first?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"first"Why it matters: Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
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
Create a sensitive information type for medical record numbers, then an auto-labeling policy to apply a sensitivity label, and finally a DLP policy to block external sharing of labeled documents.
Option D is correct because you need to create a sensitive information type for medical record numbers, then use auto-labeling to apply the label, and finally a DLP policy to block external sharing. Option A is incorrect because without the sensitivity label, DLP cannot reference it. Option B is incorrect because DLP alone cannot apply labels. Option C is incorrect because auto-labeling alone does not block sharing.
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.
- ✗
Create a DLP policy that blocks external sharing of any document with a custom keyword.
Why it's wrong here
DLP can block sharing, but first you need a sensitivity label to identify the documents.
- ✗
Create an auto-labeling policy that applies a sensitivity label to documents with medical record numbers.
Why it's wrong here
Auto-labeling applies labels but does not block sharing.
- ✗
Create a DLP policy that detects medical record numbers and blocks external sharing.
Why it's wrong here
DLP can detect and block, but without a label, it may not be consistent.
- ✓
Create a sensitive information type for medical record numbers, then an auto-labeling policy to apply a sensitivity label, and finally a DLP policy to block external sharing of labeled documents.
Why this is correct
This complete approach ensures classification and protection.
Clue confirmation
The clue word "first" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
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.
What to study next
Got this wrong? Here's your next step.
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.
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Describe the concepts of security, compliance, and identity — study guide chapter
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FAQ
Questions learners often ask
What does this SC-900 question test?
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 sensitive information type for medical record numbers, then an auto-labeling policy to apply a sensitivity label, and finally a DLP policy to block external sharing of labeled documents. — Option D is correct because you need to create a sensitive information type for medical record numbers, then use auto-labeling to apply the label, and finally a DLP policy to block external sharing. Option A is incorrect because without the sensitivity label, DLP cannot reference it. Option B is incorrect because DLP alone cannot apply labels. Option C is incorrect because auto-labeling alone does not block sharing.
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.
Are there clue words in this question I should notice?
Yes — watch for: "first". Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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Last reviewed: Jun 21, 2026
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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