SC-900 Practice Question: Describe the capabilities of Microsoft compliance solutions
Your organization uses Microsoft Purview to manage data classification. You need to ensure that sensitive data containing social security numbers is automatically labeled when stored in SharePoint Online. What should you configure?
⚠ Common exam trap
Candidates often confuse data loss prevention (DLP) policies, which enforce protective actions like blocking or alerting, with auto-labeling policies that specifically apply sensitivity labels to content based on sensitive data detection.
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 an auto-labeling policy for sensitivity labels
D is correct because auto-labeling policies in Microsoft Purview can automatically apply sensitivity labels to files containing sensitive data, such as social security numbers, when stored in SharePoint Online. This uses pattern-based detection to classify and label content at rest without manual intervention.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Use the data classification dashboard in Microsoft Purview
Why it's wrong here
The data classification dashboard in Microsoft Purview serves as an analytical tool, providing administrators with a comprehensive overview of their organization's sensitive data landscape. It identifies where sensitive information resides, tracks classification trends, and highlights potential risks across various data sources. However, this dashboard is purely for reporting and insights; it does not possess any functionality to automatically apply sensitivity labels or enforce data protection policies directly onto content.
- ✗
Create a retention label policy
Why it's wrong here
Creating a retention label policy in Microsoft Purview is designed to manage the lifecycle of data by defining how long specific content should be retained or when it should be deleted. These policies are crucial for compliance with regulatory requirements regarding data retention, ensuring data is kept for necessary periods and then disposed of appropriately. However, retention labels are distinct from sensitivity labels and do not classify data based on its sensitivity or apply protective actions like encryption or access restrictions.
- ✗
Configure a data loss prevention (DLP) policy
Why it's wrong here
Configuring a data loss prevention (DLP) policy in Microsoft Purview is primarily focused on identifying, monitoring, and protecting sensitive information from unauthorized sharing or transfer outside the organization. While DLP policies can leverage sensitivity labels as conditions to detect sensitive content, their core function is to prevent data exfiltration through actions like blocking, auditing, or prompting users. DLP policies do not automatically apply sensitivity labels to content; they react to content that already is, or should be, labeled.
- ✓
Create an auto-labeling policy for sensitivity labels
Why this is correct
Creating an auto-labeling policy for sensitivity labels is the direct and most effective method within Microsoft Purview to automatically classify data based on its content. These policies are specifically engineered to scan content in locations like SharePoint, OneDrive, and Exchange, then apply appropriate sensitivity labels when specific conditions, such as the presence of sensitive information types or trainable classifiers, are met. This automation ensures consistent data classification and the application of associated protective actions without requiring manual user intervention.
Go deeper
Related to this question
Learn chapter
Core Security Concepts
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
SharePoint Online
SharePoint Online is a cloud-based collaboration platform from Microsoft that lets teams create, store, organize, and share content securely from anywhere.
About these practice questions
This SC-900 question is part of Courseiva's 1,250-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam dumps. Learn why practice questions differ from exam dumps →
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.