SC-900 Practice Question: Describe the capabilities of Microsoft compliance solutions
Your organization uses Microsoft 365 and wants to classify and protect documents based on their content, such as credit card numbers. Which Microsoft Purview feature automatically classifies content based on sensitive information types?
⚠ Common exam trap
It's easy for candidates to confuse Data Loss Prevention (DLP) policies with auto-labeling, as both use sensitive information types, but DLP focuses on preventing data loss through actions like blocking or alerting, while auto-labeling applies classification labels for ongoing protection.
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
✓
Auto-labeling with sensitivity labels
Auto-labeling with sensitivity labels in Microsoft Purview can automatically classify and protect documents by detecting sensitive information types (e.g., credit card numbers) using built-in or custom data classifiers. This feature applies the appropriate sensitivity label based on content matches, enabling consistent protection across Microsoft 365 services.
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 Loss Prevention policy
Why it's wrong here
Data Loss Prevention (DLP) policies are designed to detect sensitive information and prevent its unauthorized sharing or transfer, acting as a reactive control. While DLP policies utilize sensitive information types for identification, their primary function is not to apply persistent classification labels to content for ongoing data governance. Instead, DLP typically enforces actions like blocking, notifying, or encrypting at the point of sharing, rather than proactively labeling for long-term classification.
- ✓
Auto-labeling with sensitivity labels
Why this is correct
Auto-labeling policies for sensitivity labels are specifically engineered to automatically apply predefined labels to content, such as documents and emails, based on conditions like the presence of sensitive information types, keywords, or trainable classifiers. This automated process ensures consistent and scalable data classification across an organization without requiring manual user intervention. Once applied, these labels enable persistent protection and governance actions, regardless of where the data resides or travels.
- ✗
Unified labeling client
Why it's wrong here
The Microsoft Purview Information Protection unified labeling client, or the built-in labeling capabilities within Microsoft 365 apps, empowers users to manually select and apply sensitivity labels to their documents and emails. While essential for user-driven classification and awareness, this client does not provide an automatic mechanism for classifying content across an organization without direct user interaction. Its role is to facilitate user choice, not to automate the initial classification process at scale.
- ✗
eDiscovery
Why it's wrong here
Microsoft Purview eDiscovery solutions are specialized tools primarily utilized for identifying, preserving, collecting, processing, reviewing, and exporting electronic stored information (ESI) in response to legal or investigative requirements. Its core purpose is to facilitate the discovery and retrieval of data for litigation, regulatory compliance, or internal investigations. eDiscovery is a reactive process focused on data retrieval and analysis, not the proactive, automatic application of classification labels for ongoing information governance.
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Microsoft Entra ID
Key term
Microsoft Purview
Microsoft Purview is a unified data governance and compliance service that helps organizations discover, manage, and protect their data across on-premises, cloud, and hybrid environments.
Key term
Microsoft 365
Microsoft 365 is a subscription-based cloud service from Microsoft that combines productivity tools like Office apps with security, device management, and online storage.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.