SC-900 Certification Prep: Security, Compliance & Identity Essentials

The SC-900 certification is designed to provide foundational knowledge of Microsoft’s approach to security, compliance, and identity (SCI). In today’s digital world, protecting sensitive data and managing access across systems is critical to business operations. Microsoft has developed a comprehensive ecosystem to manage these needs, spanning across Azure, Microsoft 365, and other services. This part of the course explores the basic concepts of security, compliance, and identity, the reasons why they matter, and how Microsoft addresses these needs through its services.

What is Security?

Security refers to the processes, tools, and strategies used to protect digital assets from unauthorized access, cyber threats, data breaches, and other forms of malicious activity. In the digital age, where data is one of the most valuable assets an organization can possess, the importance of cybersecurity cannot be overstated. Security ensures the confidentiality, integrity, and availability of information systems and the data they process.

Security is not a one-time implementation but an ongoing strategy that evolves in response to changing threat landscapes, technological advancements, and regulatory demands. Modern security goes beyond traditional firewalls and antivirus tools, encompassing advanced threat protection, identity and access management, data loss prevention, endpoint security, and compliance-driven safeguards.

The Importance of Security in a Connected World

In today’s highly connected, cloud-first world, users access data from multiple devices, often across different networks and locations. While this flexibility brings significant benefits to productivity and innovation, it also opens up a wider attack surface for threat actors.

Security has become mission-critical for several reasons:

• Increased Threat Sophistication: Cyberattacks today are more advanced and coordinated, often backed by nation-states or criminal syndicates. These attacks can include zero-day exploits, ransomware, phishing, and advanced persistent threats (APTs).

• Remote and Hybrid Work: The shift to remote work has increased reliance on cloud-based services, which in turn demands more stringent access control and data protection strategies.

• Data Proliferation: The amount of data generated, stored, and transmitted has skyrocketed, making it harder to track and protect sensitive information.

• Regulatory Pressure: Laws like GDPR, HIPAA, and CCPA impose strict data protection and breach notification requirements, with severe financial penalties for non-compliance.

Security is essential not just for protecting systems from external threats but also for fostering trust among customers, employees, and partners. A strong security posture can become a competitive advantage.

Types of Security

To understand the broad domain of security, it’s helpful to break it down into categories:

1. Network Security

Network security focuses on protecting the integrity, confidentiality, and availability of data and resources as they are transmitted across or accessed through networked systems. It includes firewalls, intrusion detection systems (IDS), and virtual private networks (VPNs).

2. Endpoint Security

Endpoint security ensures that individual devices such as laptops, mobile phones, and servers are protected from malware, ransomware, and other cyber threats. Microsoft Defender for Endpoint is a prime example of a modern solution that provides threat detection, behavioral analysis, and automated responses.

3. Identity and Access Management (IAM)

IAM ensures that only authorized users can access specific systems and data. It includes tools for authentication (like Multi-Factor Authentication, or MFA), authorization (role-based access), and user behavior monitoring. Azure Active Directory is a key component of Microsoft’s IAM approach.

4. Application Security

This involves securing software applications by identifying and fixing vulnerabilities in the code. Microsoft provides tools for secure application development and runtime protection, including Microsoft Defender for Cloud Apps.

5. Data Security

Data security protects data at rest, in motion, and in use. It includes encryption, access controls, and data classification. Microsoft Purview helps organizations identify, label, and protect sensitive data.

6. Cloud Security

With the widespread adoption of cloud computing, cloud security has become essential. Microsoft Defender for Cloud provides continuous monitoring, posture management, and threat detection for cloud resources in Azure, AWS, and GCP.

7. Security Operations (SecOps)

Security operations focus on detecting, investigating, and responding to threats. Microsoft Sentinel, a cloud-native SIEM/SOAR platform, enables organizations to ingest and analyze large volumes of security data using machine learning.

Microsoft’s Security Philosophy

Microsoft’s security approach is built on a few key principles:

• Zero Trust: Assume breach, verify explicitly, and use least privilege access. Every access request is fully authenticated, authorized, and encrypted before being granted.

• Integrated Security: Microsoft’s security tools are built into platforms like Microsoft 365 and Azure, providing consistent protection across workloads, devices, and users.

• AI-Driven Intelligence: Microsoft leverages trillions of signals collected daily from its cloud ecosystem, Windows devices, Office apps, and external sources to power threat intelligence and proactive defense strategies.

• End-to-End Coverage: Microsoft offers a unified suite that spans identity, endpoints, applications, data, infrastructure, and operational security.

Core Components of Microsoft’s Security Ecosystem

Azure Active Directory (Azure AD)

Azure AD is Microsoft’s cloud-based identity and access management service. It enables secure sign-in and access control for employees, partners, and customers. Features like Conditional Access, Identity Protection, and single sign-on (SSO) help enforce security without compromising user experience.

Microsoft Defender XDR (Extended Detection and Response)

Microsoft Defender offers a comprehensive suite of threat protection tools across endpoints, identities, emails, and applications. It unifies signal collection and incident response, reducing the time it takes to detect and respond to threats.

Microsoft Sentinel

Sentinel is Microsoft’s SIEM/SOAR platform that helps organizations collect, analyze, and act on security data at scale. Its AI-powered analytics detect anomalies and threats in real-time, and automation playbooks help contain attacks quickly.

Microsoft Purview

This suite focuses on compliance, data governance, and risk management. It includes features like data classification, records management, eDiscovery, and insider risk detection—crucial for regulated industries like finance and healthcare.

Security Best Practices for Organizations

Implementing Microsoft’s tools is just one part of a broader strategy. Organizations must also adopt cybersecurity best practices to minimize risk:

• Use Multi-Factor Authentication (MFA): Protects against compromised credentials by requiring an additional form of verification.

• Apply Least Privilege Access: Only grant users the permissions they need, nothing more. Use Just-in-Time (JIT) and Just-Enough-Access (JEA) models.

• Regularly Patch and Update: Ensure that all systems, especially endpoints and cloud services, receive timely updates to fix vulnerabilities.

• Educate Users: Regular security awareness training helps prevent phishing, social engineering, and unsafe browsing habits.

• Monitor Continuously: Use tools like Microsoft Sentinel to detect anomalies, analyze security data, and respond to threats proactively.

• Encrypt Sensitive Data: Encrypt data both at rest and in transit using Microsoft’s built-in tools to prevent unauthorized data access.

Emerging Threats and Microsoft’s Response

Microsoft continuously evolves its security offerings to address emerging challenges:

• Ransomware: Defender uses behavioral detection and sandboxing to identify ransomware before it can encrypt files.

• Supply Chain Attacks: Microsoft ensures integrity across software development pipelines and offers tools to assess third-party risks.

• IoT and OT Security: Azure Defender for IoT provides visibility and threat protection for industrial networks and connected devices.

• AI-Driven Attacks: Microsoft uses its own AI and machine learning models to detect advanced threats and adapt in real-time.

Security as a Shared Responsibility

In cloud environments, security is a shared responsibility between the provider (Microsoft) and the customer. Microsoft secures the infrastructure, but customers must configure services, manage identities, and protect their own data.

For example, Microsoft secures the physical data centers, hardware, and foundational services like Azure AD. Customers are responsible for setting strong access controls, applying encryption, and managing compliance policies.

Security is a multifaceted discipline that requires a proactive, layered approach. Microsoft provides a comprehensive, integrated, and intelligent suite of tools designed to help organizations prevent, detect, respond to, and recover from cyber threats. With its Zero Trust model, AI-enhanced threat detection, and strong focus on compliance, Microsoft equips organizations to build resilient digital ecosystems.

Understanding the full scope of security—identity, data, apps, endpoints, and beyond—is essential for IT professionals, developers, and decision-makers. As cyber threats continue to evolve, so too must our security strategies. With Microsoft’s end-to-end security portfolio, organizations can confidently embrace digital transformation while staying protected.

Understanding Compliance

Compliance is the practice of ensuring that organizational practices and systems adhere to legal, regulatory, and industry standards. This is particularly relevant in sectors such as healthcare, finance, and government, where data privacy and security regulations are strict. Microsoft provides compliance tools and frameworks that help organizations monitor, report, and manage their compliance status. These capabilities are deeply integrated into Microsoft 365 and Azure services, enabling organizations to address compliance requirements proactively.

Identity and Access Management

Identity, in the context of information technology, refers to the set of attributes that uniquely describe a user or entity within a system. Identity management is essential for controlling access to resources. Microsoft’s identity solutions are centered around Azure Active Directory (Azure AD), which enables organizations to manage users, authenticate access, and implement policies such as multi-factor authentication and conditional access.

Defense in Depth

Security is not a one-size-fits-all concept. Different organizations have different security needs depending on their size, industry, and the nature of their data. Microsoft addresses this through a layered approach known as defense in depth. This strategy incorporates multiple layers of protection across the data lifecycle, including physical data centers, network infrastructure, identity and access controls, application security, and endpoint protection. This multilayered model ensures that if one layer is breached, additional layers provide ongoing protection.

Microsoft Defender Suite

Microsoft Defender is a suite of tools designed to provide integrated threat protection across different environments. Microsoft Defender for Endpoint offers endpoint detection and response capabilities, helping organizations detect and respond to threats on devices. Microsoft Defender for Office 365 protects against email threats such as phishing and malware. Microsoft Defender for Identity helps identify threats related to user identities and insider actions. These tools provide a cohesive defense against modern cyber threats.

Role of Security Operations Centers

Security operations centers (SOCs) play a crucial role in modern cybersecurity. A SOC is a centralized team responsible for monitoring, detecting, responding to, and mitigating security threats. Microsoft provides tools such as Microsoft Sentinel, a cloud-native security information and event management (SIEM) solution. Microsoft Sentinel helps SOCs collect data, detect threats, and respond to incidents in real-time using artificial intelligence and machine learning.

Microsoft Compliance Capabilities

Compliance is not only about meeting external requirements but also about maintaining trust with customers and stakeholders. Microsoft provides over 90 compliance offerings and certifications, covering global, regional, and industry-specific requirements. Tools like Compliance Manager in Microsoft 365 help organizations assess and manage their compliance posture. It provides insights into controls, recommended actions, and risk levels, helping organizations improve their compliance continuously.

Data Classification and Protection

Data classification and labeling are essential components of a compliance strategy. Microsoft Information Protection helps organizations classify and protect data based on sensitivity. Labels can be applied manually by users or automatically based on rules. These labels dictate how data is handled, whether it needs encryption, restricted sharing, or retention policies. This helps prevent data leakage and ensures sensitive information is treated appropriately.

Managing Insider Risks

Insider risks are another key area of focus in compliance and security. Microsoft Purview Insider Risk Management helps detect, investigate, and act on risky behavior within the organization. It uses signals from Microsoft 365 and other sources to identify potential risks such as data exfiltration or policy violations. By proactively managing insider risks, organizations can prevent breaches and maintain data integrity.

Embracing the Zero Trust Model

The concept of zero trust has become central to modern security strategies. Zero trust assumes that no user or device is trusted by default, even if they are within the corporate network. Access is granted based on strict identity verification and continuous assessment of trust. Microsoft implements zero trust through a combination of tools and policies in Azure AD, Microsoft Defender, and Microsoft Endpoint Manager. This approach minimizes the attack surface and reduces the risk of unauthorized access.

Identity and Access Management (IAM)

Identity and access management (IAM) is the backbone of zero trust and modern cybersecurity. Azure AD provides a wide range of IAM capabilities, including single sign-on, role-based access control, identity protection, and external identity support. These capabilities allow organizations to manage access efficiently while enhancing security. Policies can be enforced based on user risk, device health, location, and other contextual factors.

Multi-Factor Authentication (MFA)

Multi-factor authentication (MFA) is a critical security control that enhances identity protection. MFA requires users to provide two or more forms of verification before granting access. This significantly reduces the risk of credential theft and unauthorized access. Azure AD supports a variety of MFA methods, including phone calls, text messages, mobile app notifications, and biometric verification.

Conditional Access Policies

Conditional access is another advanced identity security feature in Azure AD. It allows organizations to define policies that control access based on specific conditions such as user role, device status, location, and risk level. For example, access to sensitive resources can be restricted to compliant devices or specific geographic locations. Conditional access provides flexibility and precision in enforcing security policies.

Privileged Identity Management (PIM)

Privileged identity management (PIM) helps organizations manage and monitor privileged accounts, which have elevated access to critical systems. PIM in Azure AD enables just-in-time access, approval workflows, and auditing of privileged actions. This minimizes the risk of misuse of high-level accounts and enhances accountability.

Managing External Identities

Microsoft also supports external identities, allowing organizations to collaborate securely with partners, vendors, and customers. Azure AD B2B (business-to-business) and B2C (business-to-consumer) solutions enable secure access to resources while maintaining control over identity and access policies. This supports modern business models that involve extensive collaboration beyond organizational boundaries.

Ongoing Security and Compliance

Security and compliance are not static goals but ongoing processes. Threats evolve, regulations change, and business needs shift. Microsoft provides continuous updates, threat intelligence, and support to help organizations adapt. Through a combination of education, tools, and best practices, organizations can build a strong foundation in security, compliance, and identity.

Exploring Microsoft Identity and Access Management Solutions

Building on the foundational knowledge from Part 1, this section delves deeper into Microsoft Identity and Access Management (IAM) solutions. It explains how organizations use Azure Active Directory (Azure AD) to implement modern identity strategies, including secure access, collaboration, monitoring, and automation. These solutions are key to applying Zero Trust principles, managing hybrid identities, and integrating with applications.

Azure Active Directory Overview

Azure Active Directory (Azure AD) is Microsoft’s cloud-based identity and access management service. It provides identity services such as authentication, authorization, and directory management. Azure AD enables single sign-on (SSO), access management for apps, and support for both internal and external users. It’s foundational to Microsoft 365, Azure, and thousands of third-party applications.

Key Azure AD Features

• Authentication and Authorization: Users sign in securely and gain access to resources based on roles and policies.
• SSO (Single Sign-On): Simplifies user experience by allowing one login to access multiple applications.
• Conditional Access: Evaluates signals (user risk, device compliance, etc.) before granting access.
• External Identities: Enables secure collaboration with partners, vendors, and customers.
• Application Management: Controls access to internal and third-party applications.

Hybrid Identity with Azure AD

Many organizations operate in hybrid environments, with both on-premises and cloud-based resources. Azure AD supports hybrid identity, allowing seamless user experiences across both environments.

Hybrid Identity Models

• Password Hash Synchronization: Syncs hashed user passwords from on-prem to Azure AD.
• Pass-through Authentication: Authenticates directly against on-prem Active Directory.
• Federation: Uses Active Directory Federation Services (AD FS) for identity federation.

Azure AD Connect is the tool used to establish and manage hybrid identity configurations.

Application Access Management

Azure AD simplifies how organizations manage access to apps. Through the Azure AD Application Gallery, thousands of SaaS applications can be integrated with minimal configuration.

Benefits of App Integration

• Centralized user access management
• Seamless SSO experience
• Visibility into app usage and access patterns
• Risk-based conditional access to apps

Admins can assign access to apps based on user groups or roles and enforce policies such as MFA for high-risk applications.

Managing User Access with Roles

Azure AD allows assigning roles to manage user permissions. Microsoft provides both built-in roles (like Global Administrator or User Administrator) and custom roles.

Role-Based Access Control (RBAC)

RBAC ensures users only have the permissions they need to perform their tasks. It helps:

• Reduce the attack surface
• Improve compliance
• Simplify auditing

Identity Governance

Microsoft Identity Governance provides tools for organizations to manage identity lifecycle, access reviews, and entitlement management.

Key Governance Features

• Access Reviews: Regularly review user access to resources to ensure continued need.
• Entitlement Management: Define packages of resources for user roles or projects.
• Lifecycle Management: Automate onboarding and offboarding processes.

These tools help maintain the principle of least privilege and prevent privilege creep over time.

Secure External Collaboration

Azure AD External Identities allow secure collaboration with users outside the organization. This includes business partners and customers.

B2B Collaboration

• Invite external users to access apps and resources.
• Apply the same access policies as internal users.
• Monitor activity and enforce conditional access.

B2C (Business-to-Consumer)

• Customize user experiences for consumers signing into apps.
• Support social and local account identities.

Monitoring and Reporting

Azure AD provides rich monitoring and reporting tools to detect risks and maintain visibility over identity activities.

Tools and Capabilities

• Sign-in Logs: View successful and failed sign-ins.
• Audit Logs: Track changes to resources.
• Workbooks and Dashboards: Create visual reports using Azure Monitor integration.
• Identity Protection Reports: Detect and respond to identity-related risks.

Identity Protection

Azure AD Identity Protection uses Microsoft’s threat intelligence to detect risks like leaked credentials or unusual sign-ins.

Risk Detection Examples

• Atypical travel
• Anonymous IP address
• Impossible travel between locations

Organizations can automate responses using conditional access policies, such as requiring MFA or blocking access.

Automating Identity Management

Automation is key to scaling identity and access management. Azure AD offers several ways to automate identity tasks.

Automation Tools

• Dynamic Groups: Automatically add users based on attributes.
• Provisioning: Automatically create and deprovision accounts in connected systems.
• API Access: Use Microsoft Graph API for programmatic control.

Integration with Microsoft Security Tools

Azure AD integrates with Microsoft Defender, Microsoft Sentinel, and other tools to provide comprehensive security coverage.

Key Integration Benefits

• Correlation of identity and threat signals
• Unified security operations
• Streamlined incident response

Microsoft Security Strategy and Pillars

Microsoft’s security philosophy is built around six core principles: identity-driven security, threat protection, information protection, security management, cloud security, and compliance. These pillars form the backbone of Microsoft’s security strategy across cloud and hybrid environments. The aim is to build resilience, reduce risk, and ensure data integrity across all platforms.

Microsoft Defender for Endpoint

Microsoft Defender for Endpoint is an enterprise endpoint security platform designed to help enterprise networks prevent, detect, investigate, and respond to advanced threats. It provides behavioral sensors, cloud security analytics, and threat intelligence from Microsoft Threat Intelligence.

Defender for Endpoint operates across platforms including Windows, macOS, Linux, Android, and iOS, making it a comprehensive tool for endpoint protection. It provides real-time detection and automated response capabilities that dramatically reduce response time to potential threats.

Microsoft Defender for Office 365

Microsoft Defender for Office 365 protects users from email threats such as phishing, business email compromise, and malware. It provides safe links, safe attachments, and impersonation detection. Defender for Office 365 also includes attack simulation training to educate users against common attack methods.

Administrators can view detailed reports, track threats in real time, and automate responses to neutralize attacks before they cause harm. This tool is integrated directly into Microsoft 365 services, providing seamless protection.

Microsoft Defender for Identity

Microsoft Defender for Identity uses on-premises Active Directory signals to identify, detect, and investigate advanced threats, compromised identities, and malicious insider actions directed at the organization. It analyzes user activities and information across the network to identify suspicious behavior.

This solution is particularly important for organizations operating in hybrid environments and helps bridge the security gap between on-premises infrastructure and the cloud.

Microsoft Defender for Cloud

Microsoft Defender for Cloud is a cloud-native application protection platform (CNAPP) that helps secure Azure, hybrid, and multi-cloud environments. It provides security posture management and threat protection.

It continuously assesses the security of cloud resources, provides security recommendations, and detects threats. Defender for Cloud supports integrations with AWS and Google Cloud Platform, making it ideal for multi-cloud environments.

Microsoft Sentinel

Microsoft Sentinel is a cloud-native Security Information and Event Management (SIEM) and Security Orchestration Automated Response (SOAR) solution. It provides intelligent security analytics and threat intelligence across the enterprise.

Sentinel collects data at cloud scale across all users, devices, applications, and infrastructure. It uses built-in AI to analyze large volumes of data, detect threats, and respond to incidents.

Organizations can build custom workbooks, create alert rules, and leverage automation with playbooks to streamline security operations. Sentinel integrates with both Microsoft and non-Microsoft products, enabling a unified view of the security landscape.

Cloud Security Posture Management (CSPM)

Cloud Security Posture Management is essential for identifying and remediating risks associated with cloud configurations. Microsoft Defender for Cloud includes CSPM capabilities to help maintain a strong security posture across cloud workloads.

It continuously evaluates cloud resource configurations against security best practices and provides recommendations. For example, it can identify misconfigured storage accounts or databases and recommend secure configurations.

Data Loss Prevention (DLP)

Microsoft’s Data Loss Prevention tools are designed to detect and prevent the unauthorized sharing, use, or transmission of sensitive information. DLP policies can be applied across Microsoft 365 services like Exchange, SharePoint, OneDrive, and Microsoft Teams.

Organizations can define DLP policies based on regulatory requirements and business needs. These policies help protect sensitive data like credit card numbers, health records, and proprietary information from leaking externally.

Microsoft Purview for Information Protection

Microsoft Purview (formerly Microsoft Information Protection) provides a unified platform for discovering, classifying, and protecting sensitive data. It integrates labeling, encryption, and access control policies across Microsoft 365 and third-party environments.

Purview can automatically apply labels based on content, enabling consistent enforcement of data protection policies. This makes it easier for organizations to comply with GDPR, HIPAA, and other regulations.

Insider Risk Management

Microsoft Purview Insider Risk Management helps organizations detect and mitigate risks posed by insiders. It uses machine learning to analyze user activities and flag potentially risky behavior such as data exfiltration or unauthorized sharing of confidential information.

The tool allows administrators to create policies based on user roles, activities, and risk levels. It supports collaboration with compliance and HR teams to investigate and respond to incidents.

Secure Collaboration

Microsoft’s security capabilities are designed to support secure collaboration within and outside the organization. With tools like Microsoft Teams, SharePoint, and OneDrive, users can collaborate in real time while applying security controls such as encryption, sensitivity labels, and access restrictions.

External sharing can be managed through Azure AD B2B, and policies can ensure that only authorized users access shared documents and resources. These features make it possible to maintain security without sacrificing productivity.

Zero Trust Architecture

Zero Trust is a security model that assumes breach and verifies each request as though it originates from an open network. Microsoft’s implementation of Zero Trust relies on strong identity verification, device compliance, least privilege access, and continuous assessment of session risk.

Key components include Azure AD for identity management, Microsoft Endpoint Manager for device compliance, Microsoft Defender for threat protection, and Microsoft Sentinel for monitoring and response.

Identity Protection and Governance

Identity Protection uses risk-based conditional access policies to enforce security measures when risky user behavior is detected. It supports policies such as requiring MFA, blocking access, or initiating user password reset.

Microsoft’s Identity Governance features, including access reviews, entitlement management, and privileged identity management, help organizations control who has access to what resources and for how long.

Threat Intelligence

Microsoft’s threat intelligence is built on trillions of signals collected daily across the Microsoft ecosystem. This intelligence powers advanced threat protection features in Defender and Sentinel.

Microsoft Threat Experts provide human-led insights to assist in investigating and responding to complex threats. Customers can also subscribe to Microsoft Threat Intelligence data feeds to enhance their internal security analytics.

Security Score and Compliance Score

Microsoft Secure Score provides a measurement of an organization’s security posture and recommends actions to improve it. It covers identity, data, device, app, and infrastructure security.

Compliance Score offers a similar capability focused on regulatory compliance. It evaluates an organization’s adherence to frameworks such as ISO 27001, NIST, and GDPR.

Integrations and APIs

Microsoft security tools offer extensive APIs and integration capabilities. Microsoft Graph Security API allows developers to build custom security solutions and automate workflows. Sentinel supports custom connectors for integrating third-party tools and services.

These integrations enable organizations to customize security monitoring and response capabilities according to their unique environment.

Microsoft Compliance and Risk Management Solutions

These features are essential for organizations operating in regulated industries or handling sensitive information. Microsoft offers a rich set of compliance solutions under the Microsoft Purview umbrella, including tools for data classification, regulatory compliance management, risk assessments, communication monitoring, and auditing. This section also covers real-world use cases and industry-specific compliance scenarios.

Microsoft Purview Compliance Portal

The Microsoft Purview compliance portal serves as the central hub for managing compliance across Microsoft 365. It provides dashboards, insights, and access to solutions related to data lifecycle, governance, eDiscovery, auditing, and insider risk management.

Through this portal, administrators can view compliance scores, configure policy alerts, run assessments, and access reports that inform ongoing risk mitigation efforts.

Compliance Manager

Microsoft Compliance Manager provides a powerful tool for assessing and tracking compliance with various regulatory standards, including GDPR, ISO 27001, HIPAA, NIST, and more. It includes:

• Pre-built assessment templates aligned to global regulations.

• Control mapping to Microsoft services.

• Automated testing of technical controls.

• Detailed improvement actions and evidence tracking.

Compliance Manager gives an organization a real-time view of its compliance posture and actionable insights to improve its security and data protection strategies.

Information Governance

Microsoft’s information governance tools allow organizations to manage the lifecycle of data across Microsoft 365. These tools enable businesses to retain, delete, or archive content in accordance with organizational policies or regulatory requirements.

Labels and retention policies can be applied manually or automatically based on content type, location, or keywords. This helps ensure sensitive or business-critical information is preserved and non-essential data is removed efficiently.

Records Management

Building on information governance, Microsoft Purview offers robust records management capabilities. Organizations can declare content as a record to ensure it is retained in an immutable state for the required duration.

Records management features include:

• Event-based retention.

• Disposition review workflows.

• Proof of deletion for auditing purposes.

• File plan creation and automation.

These capabilities support legal, regulatory, and business obligations, particularly in government and highly regulated industries.

Data Classification and Labeling

Microsoft Purview provides intelligent data classification features powered by AI and machine learning. It can automatically detect and classify sensitive content using built-in and custom sensitive information types.

Labels can be used to apply encryption, access restrictions, and retention rules. These classifications are visible to end users and help promote compliance through awareness.

Administrators can also review content explorer and activity explorer reports to understand where sensitive data resides and how it is being used.

Insider Risk Management and Communication Compliance

Purview Insider Risk Management helps detect, investigate, and respond to activities that may indicate insider threats, such as data exfiltration or policy violations.

Communication Compliance, also part of Microsoft Purview, monitors internal and external communications across Microsoft Teams, Exchange, Yammer, and other platforms. It flags communications that may violate corporate policies or regulatory standards (e.g., harassment, insider trading, or sensitive data sharing).

Both tools use machine learning to reduce false positives and allow for case-based investigations, escalation, and remediation.

Microsoft eDiscovery

Microsoft Purview eDiscovery tools help legal and compliance teams identify and deliver electronic information that can be used as evidence in legal cases. There are two main types:

• Core eDiscovery: Basic case management, content search, and export capabilities.

• Advanced eDiscovery: Includes machine learning for relevance and similarity detection, legal hold capabilities, and custodian management.

Advanced eDiscovery also integrates with Microsoft 365 workloads, enabling a streamlined workflow for collecting and analyzing data.

Auditing and Logging

Auditing capabilities within Microsoft Purview allow organizations to track user and admin activities across Microsoft 365 services. Unified Audit Logs provide a single interface for viewing a wide range of events, such as file access, email sends, login attempts, and configuration changes.

Advanced auditing includes longer log retention, access to critical events, and higher reliability logging for sensitive operations. These logs support internal investigations, forensics, and regulatory compliance requirements.

Regulatory Compliance and Industry Solutions

Microsoft invests heavily in meeting regulatory requirements across a wide range of industries. Its compliance framework supports over 300 certifications and attestations, including:

• GDPR (General Data Protection Regulation)

• HIPAA (Health Insurance Portability and Accountability Act)

• FedRAMP (Federal Risk and Authorization Management Program)

• CJIS (Criminal Justice Information Services)

• ISO/IEC 27001 and 27701

Microsoft also provides industry-specific solutions, such as:

• Healthcare: Built-in HIPAA compliance templates and secure data sharing tools.

• Finance: Communication supervision, data archiving, and anti-money laundering workflows.

• Government: Support for CMMC and high-impact FedRAMP workloads.

These offerings allow organizations to tailor their compliance programs to meet industry expectations.

Real-World Scenarios and Use Cases

Scenario 1: Healthcare Provider Using Microsoft 365 for HIPAA Compliance

A large healthcare organization uses Microsoft Purview to implement DLP policies and automatic labeling of patient health information (PHI). Through eDiscovery and audit logs, they are able to comply with HIPAA auditing requirements and ensure secure collaboration among healthcare teams.

Scenario 2: Financial Institution Managing Communication Compliance

A multinational bank leverages Communication Compliance to monitor broker-dealer conversations across email and Teams, ensuring FINRA and SEC rule adherence. Policies detect sensitive keywords and behavioral patterns linked to insider trading and regulatory breaches.

Scenario 3: Government Agency Meeting FedRAMP and CJIS Requirements

A state government agency uses Microsoft 365 GCC High along with Purview and Compliance Manager to enforce strict access controls, manage classified document retention, and demonstrate compliance with CJIS standards.

Summary

Microsoft’s compliance and risk management capabilities provide a comprehensive framework for addressing industry regulations, protecting sensitive data, and maintaining operational transparency. Through Microsoft Purview, Compliance Manager, eDiscovery, and advanced auditing, organizations gain end-to-end visibility and control over their compliance landscape. As the final part of the SC-900 course, this section ties together identity, security, and compliance into a cohesive strategy that supports modern regulatory needs while enabling collaboration and innovation.