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

You work for a law firm that uses Microsoft 365 E5. The firm handles highly confidential client information and must comply with attorney-client privilege. You need to implement a compliance solution that: - Prevents unauthorized sharing of privileged documents via email. - Enables lawyers to easily classify documents as 'Privileged' and automatically encrypt them. - Allows the compliance team to monitor for accidental exposure of privileged information in Teams chats. - Ensures that privileged documents are retained for 7 years after case closure, then automatically deleted. - Provides the ability to search for privileged documents in case of a legal hold. What should you configure?

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

Sensitivity labels with encryption, DLP, Communication Compliance, Data Lifecycle Management, and eDiscovery

It combines all required capabilities: Sensitivity labels with encryption allow lawyers to classify documents as 'Privileged' and automatically encrypt them; DLP prevents unauthorized sharing of privileged documents via email; Communication Compliance monitors Teams chats for accidental exposure; Data Lifecycle Management retains privileged documents for 7 years after case closure and then automatically deletes them; eDiscovery provides the ability to search for privileged documents in case of a legal hold. Option B is incorrect because it lacks Sensitivity labels (needed for classification and encryption) and includes Audit (Standard) which does not provide the retention or search capabilities of Data Lifecycle Management and eDiscovery. Option C is incorrect because Insider Risk Management focuses on detecting risky user activities but does not enable lawyers to classify or encrypt documents, and it is not designed for monitoring Teams chats for privilege exposure; Communication Compliance is needed for that. Option D is incorrect because Information Barriers restrict communication between specific groups to prevent information sharing, but does not monitor for accidental exposure in Teams; Communication Compliance is required for that monitoring.

Answer analysis

Option-by-option breakdown

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

  • Sensitivity labels with encryption, DLP, Communication Compliance, Data Lifecycle Management, and eDiscovery

    Why this is correct

    All requirements are covered: classification, encryption, DLP, monitoring, retention, and eDiscovery.

  • DLP, Communication Compliance, Data Lifecycle Management, and Audit (Standard)

    Why it's wrong here

    Missing classification and encryption; Audit (Standard) does not provide retention management.

  • Insider Risk Management, DLP, Data Lifecycle Management, and eDiscovery

    Why it's wrong here

    Insider Risk Management does not classify or encrypt documents.

  • Sensitivity labels, Information Barriers, Data Lifecycle Management, and eDiscovery

    Why it's wrong here

    Information Barriers do not prevent sharing or monitor Teams.

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

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