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

Your organization needs to classify documents containing personally identifiable information (PII) like social security numbers. Which Microsoft Purview solution should you configure?

⚠ Common exam trap

Test-takers frequently confuse Records Management (which deals with retention and deletion) with Information Protection (which deals with classification and labeling), leading them to select B when the question explicitly asks about classifying documents containing PII.

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

Information Protection

Microsoft Purview Information Protection (A) is the correct solution because it provides classification and labeling capabilities specifically designed to identify, label, and protect sensitive data such as PII (e.g., social security numbers). It uses trainable classifiers and exact data match (EDM) to automatically detect sensitive content and apply appropriate protection actions like encryption or access restrictions.

Answer analysis

Option-by-option breakdown

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

  • Information Protection

    Why this is correct

    Information Protection is the correct solution because it specifically provides capabilities to classify and label sensitive data within documents, whether manually by users or automatically based on content inspection. This service, often delivered through Microsoft Purview Information Protection (MPIP), enables organizations to apply sensitivity labels that not only categorize data but also enforce protective actions like encryption, access restrictions, and visual markings, directly addressing the need to classify documents containing specific information.

  • Records Management

    Why it's wrong here

    Records Management primarily focuses on managing the lifecycle of records, including their retention, disposition, and legal holds, to meet regulatory and organizational requirements. While it ensures that important information is kept for the appropriate duration and then securely deleted, its core function is not the initial classification of sensitive content within documents. It typically acts upon content that has already been identified as a record, often after it has been created and potentially classified by other means.

  • Auditing

    Why it's wrong here

    Auditing is designed to track and log user and administrative activities across various services, providing a detailed record of who accessed what, when, and from where. This capability is crucial for security investigations, compliance reporting, and forensic analysis, offering transparency into data interactions. However, auditing does not inherently classify the content of documents itself; instead, it monitors and records events related to data, rather than proactively categorizing the data's sensitivity.

  • Communication Compliance

    Why it's wrong here

    Communication Compliance is a solution focused on detecting and remediating policy violations within an organization's internal and external communications, such as email, Microsoft Teams, and other collaboration platforms. It leverages machine learning to identify inappropriate content, harassment, or sensitive data sharing in transit. Its scope is specifically tailored to monitoring communication channels for policy adherence, not for applying sensitivity labels or classifying the content of documents at rest within storage locations.

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Last reviewed: Jul 4, 2026

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