Microsoft SC-401 Administering Information Security in Microsoft 365 Exam Dumps and Practice Test Questions Set 13 Q181-195
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Question 181:
You want to detect Teams messages and emails containing harassment or offensive language to enforce workplace policies. Which feature should you implement?
A) Communication Compliance
B) Data Loss Prevention
C) Sensitivity Labels
D) Retention Labels
Answer: A
Explanation:
Communication Compliance in Microsoft 365 enables organizations to monitor Teams messages, emails, and other communication channels for policy violations such as harassment, offensive language, bullying, or inappropriate behavior. It leverages machine learning, keyword matching, and pattern recognition to flag potentially non-compliant messages. Compliance officers can review flagged content with detailed context, including sender, recipient, message history, and surrounding messages to assess severity and intent.
Policies can be configured to target specific departments, locations, or roles to ensure that monitoring aligns with internal and regulatory requirements. This granularity allows organizations to apply the most appropriate level of monitoring and enforcement based on organizational hierarchy, employee function, and risk exposure. For example, executives or HR teams may require a higher level of monitoring due to the sensitivity of the information they handle, whereas other departments may have more general compliance needs. Communication Compliance integrates with eDiscovery, allowing organizations to preserve flagged content for legal or compliance purposes. This integration ensures that all flagged content is systematically collected and stored in a manner that maintains its integrity, making it defensible for regulatory audits, internal investigations, or legal proceedings. Dashboards provide actionable insights into trends, repeat offenders, and policy effectiveness, enabling proactive interventions to maintain workplace safety. Organizations can analyze patterns over time, identify employees who may need training or coaching, and evaluate whether existing policies are sufficient or need adjustment.
Communication Compliance can also leverage machine learning and AI-driven classifiers to automatically detect potential violations, which reduces the burden on compliance teams and ensures that nothing is missed due to human error. For instance, offensive language, harassment, or discriminatory content can be detected even when subtle variations in phrasing are used, allowing organizations to maintain a safe and inclusive workplace. Administrators can configure severity levels, so low-risk messages may only trigger warnings, while high-risk messages are escalated immediately for review, ensuring efficiency and prioritization in the investigation workflow.
Data Loss Prevention protects sensitive content from being shared externally, but does not monitor employee behavior or communication policies. DLP is primarily content-focused: it looks for sensitive information such as financial data, personally identifiable information (PII), or intellectual property, and applies restrictions to prevent leaks. However, it cannot detect inappropriate communication behaviors such as harassment, bullying, or insider threats. While DLP is an essential tool for safeguarding information, it does not provide insight into employee conduct or help enforce organizational communication standards.
Sensitivity Labels classify and protect documents and emails through encryption or access restrictions, but do not monitor communication for policy violations. They focus on securing content and controlling access rather than evaluating the behavior or intent behind communications. Labels can enforce encryption, limit sharing, and track access to sensitive content, but they cannot determine whether an employee’s message violates organizational policies or compliance rules.
Retention Labels enforce content preservation or deletion schedules but do not monitor messages or behavior. They are lifecycle-focused, ensuring that content is retained for the required period to meet legal or regulatory obligations and then deleted appropriately. However, they provide no real-time monitoring or behavioral analysis. Retention Labels are essential for compliance with data retention laws, but are insufficient for detecting inappropriate communications or enforcing workplace policies.
Communication Compliance is the correct solution because it proactively monitors communication, identifies policy violations, and provides a structured process for review and corrective action. Unlike DLP, it is behavior-focused and capable of analyzing the context, tone, and content of messages to detect violations beyond simple content restrictions. Unlike Sensitivity Labels, it monitors messages rather than merely securing content, providing organizations with actionable insights into employee behavior. Unlike Retention Labels, it enforces compliance and ethical communication standards in real time rather than merely managing content lifecycle. Implementing Communication Compliance ensures that inappropriate communications are detected early, investigated effectively, and addressed in line with regulatory and organizational standards. Furthermore, by combining automated detection, human review workflows, and integration with eDiscovery, organizations can maintain legal defensibility, mitigate reputational risks, and promote a safe, respectful workplace culture.
Question 182:
You want to prevent accidental sharing of payroll documents externally while allowing internal collaboration. Which feature should you implement?
A) Data Loss Prevention
B) Sensitivity Labels
C) Retention Labels
D) Conditional Access
Answer: A
Explanation:
Data Loss Prevention (DLP) in Microsoft 365 enables organizations to prevent the accidental or unauthorized external sharing of sensitive payroll documents. DLP policies can detect sensitive information using predefined types, keywords, or custom patterns to identify content such as Social Security numbers, employee salary data, or payroll records. When a user attempts to share restricted content externally, DLP can block the action, display a policy tip to inform the user, or notify administrators. This ensures sensitive data is protected while allowing internal collaboration to continue seamlessly.
DLP operates across Microsoft 365 workloads, including Teams, SharePoint, OneDrive, and Exchange. Administrators can track incidents through reports, monitor repeat offenders, and fine-tune policies based on organizational needs. Temporary overrides with user justification can be configured to maintain business flexibility while ensuring security. In addition to these capabilities, DLP also provides centralized analytics that help organizations identify patterns of data movement, evaluate risk levels, and determine whether policies are effectively mitigating threats. Organizations can create granular rules tailored to specific departments—such as HR, Finance, or Legal—ensuring that sensitive information relevant to each business function is properly protected without creating unnecessary restrictions. This level of customization is crucial for organizations managing multiple data types with varying regulatory obligations.
Another major advantage of DLP is its ability to operate seamlessly in the background, providing continuous monitoring without disrupting the user experience. DLP policies evaluate content in real time, whether it is being created, shared, or modified, and apply actions based on defined sensitivity criteria. These actions can range from simple user notifications—like policy tips—to more stringent controls such as automatic encryption, blocking external sharing, or preventing the copying of content into unauthorized applications. Because the system operates on Microsoft’s unified compliance platform, organizations benefit from consistent protection across all supported services, reducing the risk of gaps or misconfigurations.
Sensitivity Labels, while essential for classifying and securing content, do not provide this type of behavior-based enforcement. Labels apply encryption and access restrictions, but do not block accidental sharing in real time. They secure content rather than enforcing policies tied to user actions. Even though Sensitivity Labels are valuable for ensuring that documents remain protected regardless of where they are stored, they depend heavily on users selecting the correct label. If a user mislabels or fails to label a document, the protection may not be applied. DLP addresses this gap by automatically detecting sensitive information, reducing the reliance on user judgment alone.
Retention Labels preserve or delete content according to retention schedules but do not prevent external sharing. Their primary function is lifecycle management—ensuring content is retained for regulatory or business requirements and defensibly deleted when appropriate. They play a critical role in compliance and data governance, particularly for industries with strict audit or evidentiary requirements. However, they are not designed to monitor day-to-day data handling or stop risky user actions. Unlike DLP, they do not analyze content for sensitive information during sharing events, nor do they provide user-facing guidance.
Conditional Access enforces access rules based on device, location, or user identity but does not inspect content for sensitive data. It is an identity-centric control rather than a content-aware one. Conditional Access helps ensure that only trusted users and compliant devices can sign into cloud resources, which is vital for securing the perimeter of the organization’s digital environment. However, once a user is authenticated and inside the system, Conditional Access has no visibility into what content they are interacting with or whether they are trying to share sensitive information improperly. It protects access, not the data itself.
DLP is the correct solution because it actively monitors content, blocks unauthorized sharing, educates users via policy tips, and generates administrative alerts. Unlike Sensitivity Labels, it governs behavior rather than only securing content; unlike Retention Labels, it enforces real-time protection; and unlike Conditional Access, it protects content itself rather than access. Implementing DLP ensures payroll information is protected while supporting internal workflows. With well-designed DLP policies, organizations can maintain the right balance between security and productivity, ensuring that employees are empowered to collaborate effectively while sensitive data remains safeguarded. By leveraging DLP’s continuous monitoring, automated remediation actions, and detailed reporting, organizations gain a proactive security posture that reduces both accidental data loss and intentional misuse.
Question 183:
You want to preserve emails and Teams messages for legal investigations and prevent deletion. Which feature should you implement?
A) eDiscovery Legal Hold
B) Retention Labels
C) Data Loss Prevention
D) Communication Compliance
Answer: A
Explanation:
eDiscovery Legal Hold in Microsoft 365 is used to preserve emails, Teams messages, SharePoint documents, and OneDrive files for legal or regulatory investigations. Once Legal Hold is applied, content cannot be deleted or modified, ensuring the integrity and availability of evidence. Legal Hold can target specific users, groups, or locations to avoid impacting unrelated data while preserving relevant content. Detailed audit logs track all actions on preserved content, supporting regulatory compliance and defensible legal preservation.
Integration across Microsoft 365 ensures coverage of communication channels, files, and collaboration spaces. Legal Hold also enables content export for review by legal teams, providing a structured, defensible process for regulatory or litigation purposes.
Retention Labels enforce preservation or deletion but are not case-specific and cannot selectively preserve content for legal investigations. Their primary purpose is to support information governance strategies by controlling how long organizations retain data to satisfy business, regulatory, or compliance requirements. While they are effective for broad retention schedules—such as preserving financial records for seven years or ensuring that corporate communications are deleted after a certain timeframe—they do not provide the granular, targeted preservation required during litigation. When an organization faces a legal inquiry, investigation, or audit, it typically must preserve a very specific subset of content associated with certain custodians, time periods, or communication threads. Retention Labels operate at the content-classification level rather than the case-management level, making them insufficient when the preservation scope needs to be precise, defensible, and tied to a legal matter.
Data Loss Prevention prevents the sharing of sensitive content, but does not preserve content or prevent deletion for legal cases. DLP is designed to monitor and control data movement, ensuring that sensitive information such as financial records, personal data, or intellectual property is not improperly shared or leaked outside the organization. Although DLP plays a critical role in protecting confidential information and guiding user behavior, it is not intended to retain data or maintain evidentiary integrity. Even if DLP blocks the transmission of sensitive information, users can still delete content unless another retention tool is in place. For legal matters, organizations must be able to guarantee that specific documents, messages, and files remain intact and unaltered; DLP offers no capabilities to preserve data for discovery, litigation holds, or regulatory review. Its purpose is prevention, not preservation.
Communication Compliance monitors communication for policy violations but does not preserve content for legal purposes. This feature focuses on identifying inappropriate, risky, or noncompliant communications within Microsoft 365 environments. It enables organizations to detect behaviors related to harassment, insider trading, data exfiltration attempts, or code-of-conduct violations. While Communication Compliance can flag problematic messages, analyze context, and help organizations address behavioral risks, it does not offer the mechanisms necessary to retain evidence in a legally defensible manner. The monitoring and remediation workflow is separate from the requirements of litigation, where content must be preserved without alteration and maintained under strict chain-of-custody standards. Communication Compliance is valuable for risk management and regulatory adherence, but it is not a substitute for a formal legal hold.
eDiscovery Legal Hold is the correct solution because it preserves critical content, prevents deletion, maintains audit trails, and ensures compliance for legal or regulatory purposes. Legal Hold ensures that all relevant documents—emails, chats, files, and other content types—are retained exactly as they existed at the time the hold was applied. Users can continue to work normally, but behind the scenes, Microsoft 365 stores immutable copies to ensure that nothing can be permanently removed or altered. This capability is essential in litigation scenarios, where courts, regulatory agencies, or opposing legal counsel may require complete, unmodified evidence. Legal Hold also allows organizations to target preservation efforts at specific users, custodians, groups, or content locations, making it highly flexible and case-specific. This precision ensures that only the necessary content is preserved, reducing both cost and complexity.
Unlike Retention Labels, Legal Hold is tied directly to individual cases and can be managed through eDiscovery workflows. This ensures that organizations maintain a clear chain of custody, apply targeted preservation, and meet legal deadlines. Unlike DLP, it is designed not to prevent sharing or control data movement but to safeguard evidence by preventing deletion. Unlike Communication Compliance, it focuses on preserving data rather than monitoring user behavior. By implementing eDiscovery Legal Hold, organizations ensure that they meet their legal obligations while protecting their operational integrity, reducing legal risk, and demonstrating defensible, audit-ready compliance practices.
Question 184:
You want to detect employees attempting to exfiltrate confidential files to personal cloud accounts. Which feature should you implement?
A) Insider Risk Management
B) Data Loss Prevention
C) Sensitivity Labels
D) Retention Labels
Answer: A
Explanation:
Insider Risk Management in Microsoft 365 helps organizations detect risky user behavior, including attempts to exfiltrate confidential files to personal cloud accounts. It uses machine learning, behavioral analytics, and pattern recognition to detect anomalies such as bulk file access, unusual downloads, or attempts to bypass security controls. Risk scores are assigned to users based on detected behaviors, and alerts are generated for security or compliance teams to investigate. Detailed context about actions, content, and history helps distinguish malicious, accidental, or benign activities.
Integration with OneDrive, SharePoint, Teams, and Exchange ensures comprehensive monitoring across all content locations. Policies can be tailored to departments, roles, or specific content types. Alerts allow proactive intervention to prevent data exfiltration and ensure regulatory compliance. Insider Risk Management (IRM) leverages signals from across the Microsoft 365 ecosystem, enabling organizations to correlate activities that might appear benign in isolation but indicate high-risk patterns when viewed collectively. For example, downloading an unusually large number of files from SharePoint, exporting data to USB storage, and then attempting to access email from an unmanaged device could automatically raise a risk score. Because IRM consolidates signals from multiple services, it provides a holistic security posture rather than relying solely on snapshots of individual activities.
Another significant advantage is the ability to build policies based on organizational context, such as employees working in regulated roles, handling confidential information, or being subject to specific compliance obligations. Policies can be scoped to include only certain business units—for example, Finance or Research and Development—ensuring that monitoring efforts remain targeted and relevant. This minimizes unnecessary noise while ensuring meaningful insights into potential risks. Administrators can also incorporate timeline-based insights, viewing patterns of behavior over weeks or months to identify slow-developing data exfiltration attempts that traditional tools might miss.
Advanced alerting capabilities enable security teams to investigate suspicious activity before a breach occurs. Alerts include detailed evidence such as timestamps, file names, device identifiers, and sequence-of-actions context. This rich data supports both security investigations and compliance reporting, helping organizations document their efforts to prevent insider risk. Built-in workflows allow investigators to escalate cases, request additional information, or collaborate with HR or Legal teams as required. These workflows help ensure a consistent, defensible process for addressing potential insider threats, reducing the chance that critical incidents go unnoticed.
Data Loss Prevention can block content sharing, but does not provide behavioral monitoring, risk scoring, or proactive detection of insider threats. While DLP excels at identifying sensitive information and preventing unauthorized sharing, it operates on content inspection rather than user behavior. DLP does not analyze long-term patterns or correlate activities across multiple systems. It is highly effective at controlling data flow but not at recognizing when an employee might be preparing to leave the company with intellectual property or when a compromised account begins acting suspiciously. As such, DLP remains an essential control but does not address the broader behavioral analysis required for insider threat programs.
Sensitivity Labels secure content via encryption and access restrictions, but do not monitor user behavior. Their function is to classify and protect documents, ensuring only authorized users can open or modify them. However, they offer no insights into whether a user is behaving suspiciously or violating organizational expectations. Labels safeguard the content but cannot identify patterns like mass downloads, unusual access attempts, or deliberate attempts to bypass security controls.
Retention Labels enforce preservation or deletion schedules but do not detect insider threats. These labels help organizations manage the lifecycle of information, ensuring compliance with regulatory retention requirements. Their purpose is archival and organization-wide content governance—not behavioral analysis. While Retention Labels play a critical role in long-term data strategy, they offer no functionality to monitor activity, detect anomalies, or generate security alerts.
Insider Risk Management is the correct solution because it monitors behavior, identifies risky activities, generates alerts, and allows proactive mitigation. Unlike DLP, it is behavior-driven; unlike Sensitivity Labels, it monitors activity rather than securing content; and unlike Retention Labels, it is proactive rather than lifecycle-focused. IRM addresses a crucial gap by connecting user actions, contextual signals, and security intelligence to reveal hidden risks. By implementing IRM, organizations gain visibility into potentially harmful behaviors, reduce the likelihood of data leaks or sabotage, and strengthen their overall security posture with actionable insights and well-defined investigative workflows.
Question 185:
You want to enforce temporary activation of privileged administrative roles with approval workflows. Which feature should you implement?
A) Privileged Access Management
B) Conditional Access
C) Identity Protection
D) Data Loss Prevention
Answer: A
Explanation:
Privileged Access Management (PAM) in Microsoft 365 allows just-in-time activation of privileged administrators. Administrators request temporary access for elevated roles and provide business justification, following the principle of least privilege. PAM integrates approval workflows, multi-factor authentication, and auditing to ensure accountability, compliance, and traceability.
Integration with Azure AD and Microsoft 365 workloads such as Exchange, SharePoint, Teams, and OneDrive ensures consistent enforcement. Audit logs track all privileged actions, including activation requests, approvals, and performed tasks. Role-specific approval workflows provide additional scrutiny for high-risk roles. PAM reduces standing privileges, mitigates insider threats, and aligns with zero-trust security principles.
Conditional Access manages access based on identity, device, or location, but does not govern privileged role activation.
Identity Protection detects risky sign-ins but does not control privileged role workflows.
Data Loss Prevention prevents sensitive content from leaving the organization, but does not manage administrative privileges.
Privileged Access Management is the correct solution because it enforces temporary activation, requires approval, logs activities, and reduces standing privilege risks. Unlike Conditional Access, it governs workflows; unlike Identity Protection, it manages role activation; and unlike DLP, it governs administrative actions rather than content.
Question 186:
You want to automatically classify and encrypt documents containing sensitive client information stored in SharePoint. Which feature should you implement?
A) Sensitivity Labels
B) Data Loss Prevention
C) Retention Labels
D) Conditional Access
Answer: A
Explanation:
Sensitivity Labels in Microsoft 365 enable organizations to classify and protect sensitive documents automatically or manually. When applied to documents containing client information, labels can enforce encryption, restrict access to authorized users, and prevent copying, printing, or sharing outside approved recipients. Automatic classification can be based on content inspection, keywords, or predefined sensitive information types, ensuring consistent protection across SharePoint, OneDrive, Teams, and Exchange Online.
Persistent protection ensures that even if a document is downloaded or shared outside Microsoft 365, the encryption and access restrictions remain. Administrators can monitor access, generate compliance reports, and detect unauthorized attempts to open or modify sensitive files. Sensitivity Labels support user-guided recommendations to reduce human error and enforce organizational policies without disrupting productivity.
Data Loss Prevention can detect sensitive content and block unauthorized sharing, but does not embed encryption or enforce access restrictions persistently within the document.
Retention Labels enforce preservation or deletion schedules but do not provide access control or encryption.
Conditional Access manages access to Microsoft 365 applications based on user, device, or location, but does not secure individual documents directly.
Sensitivity Labels are the correct solution because they enforce encryption, access control, and persistent protection across Microsoft 365 workloads. Unlike DLP, they secure content proactively; unlike Retention Labels, they focus on security rather than lifecycle management; and unlike Conditional Access, they protect the document itself rather than the environment. Implementing Sensitivity Labels ensures client information remains confidential, compliant, and secure while enabling authorized collaboration.
Question 187:
You want to prevent employees from accidentally sharing payroll data externally while maintaining internal collaboration. Which feature should you implement?
A) Data Loss Prevention
B) Sensitivity Labels
C) Retention Labels
D) Conditional Access
Answer: A
Explanation
Data Loss Prevention (DLP) in Microsoft 365 allows organizations to prevent accidental or unauthorized external sharing of payroll data while allowing internal collaboration. DLP policies can detect sensitive content such as Social Security numbers, employee salaries, or tax information using predefined sensitive information types, custom patterns, or keywords. When a user attempts to share restricted content externally, DLP can block the action, provide a policy tip, and optionally notify administrators. This ensures compliance with regulations like GDPR, HIPAA, or SOX while minimizing risk.
DLP policies apply across Teams, SharePoint, OneDrive, and Exchange Online, providing consistent protection for collaboration environments. Reporting and auditing capabilities allow administrators to monitor incidents, evaluate policy effectiveness, and adjust thresholds or rules. Temporary exceptions with justification can balance security with business needs.
Sensitivity Labels encrypt content and control access, but do not block accidental sharing in real-time.
Retention Labels preserve or delete content according to a schedule, but do not prevent sharing.
Conditional Access manages access to apps or data based on identity, device, or location, but does not inspect content or prevent sharing.
DLP is the correct solution because it proactively monitors content sharing, blocks unauthorized actions, educates users with policy tips, and generates alerts. Unlike Sensitivity Labels, it governs behavior rather than securing content; unlike Retention Labels, it enforces real-time protection; and unlike Conditional Access, it controls content sharing directly. Implementing DLP ensures payroll data remains secure while enabling internal collaboration.
Question 188:
You want to preserve emails and Teams messages relevant to ongoing litigation and prevent deletion. Which feature should you implement?
A) eDiscovery Legal Hold
B) Retention Labels
C) Data Loss Prevention
D) Communication Compliance
Answer: A
Explanation:
eDiscovery Legal Hold in Microsoft 365 preserves emails, Teams messages, SharePoint files, and OneDrive content relevant to litigation or regulatory investigations. Once applied, content cannot be deleted or modified, ensuring defensible preservation of evidence. Legal Hold can target specific users, groups, or content locations, preventing disruption of unrelated content while ensuring legal compliance. Audit logs track all activity on preserved items, supporting regulatory and litigation requirements.
Legal Hold integrates with Microsoft 365 workloads, ensuring coverage across communication channels and file repositories. Content can be exported for review by legal teams or regulatory authorities, providing a defensible process for legal and compliance investigations.
Retention Labels enforce preservation or deletion schedules but are not case-specific and cannot selectively preserve content for legal purposes.
Data Loss Prevention prevents sensitive content from leaving the organization, but does not preserve or prevent deletion for legal investigations.
Communication Compliance monitors communications for policy violations but does not preserve content for litigation.
eDiscovery Legal Hold is the correct solution because it preserves relevant content, prevents deletion, maintains audit trails, and ensures compliance during legal investigations. Unlike Retention Labels, it is case-specific; unlike DLP, it secures content rather than preventing sharing; and unlike Communication Compliance, it preserves evidence rather than monitoring behavior.
Question 189:
You want to detect employees attempting to upload confidential project files to personal cloud accounts. Which feature should you implement?
A) Insider Risk Management
B) Data Loss Prevention
C) Sensitivity Labels
D) Retention Labels
Answer: A
Explanation:
Insider Risk Management in Microsoft 365 helps detect risky employee behavior, including attempts to exfiltrate confidential project files to personal cloud storage or external locations. Using machine learning, behavioral analytics, and pattern recognition, it identifies anomalies such as unusual downloads, bulk access to sensitive files, or attempts to bypass security controls. Risk scores are assigned based on behavior patterns, and alerts are generated for security or compliance teams to investigate.
Contextual details about user activity, file access, and history help distinguish between malicious, accidental, or benign actions. Integration with Microsoft 365 workloads such as OneDrive, SharePoint, Teams, and Exchange ensures comprehensive monitoring. Organizations can configure policies by user, department, or content type to proactively mitigate insider threats. Alerts allow timely intervention to prevent data leaks and maintain regulatory compliance.
Data Loss Prevention can block sharing, but does not provide behavior-based risk scoring or monitoring over time.
Sensitivity Labels secure content via encryption but do not monitor behavior.
Retention Labels preserve content for compliance but do not detect insider threats.
Insider Risk Management is the correct solution because it evaluates user behavior, generates alerts, and enables proactive intervention. Unlike DLP, it is behavior-driven; unlike Sensitivity Labels, it monitors activity rather than securing content; and unlike Retention Labels, it is proactive rather than lifecycle-focused.
Question 190:
You want to enforce temporary activation of privileged administrative roles with approval workflows. Which feature should you implement?
A) Privileged Access Management
B) Conditional Access
C) Identity Protection
D) Data Loss Prevention
Answer: A
Explanation:
Privileged Access Management (PAM) in Microsoft 365 enables just-in-time activation of privileged administrative roles. Administrators request temporary elevated access and provide a business justification for approval. This reduces risk from standing privileges, misconfigurations, or misuse. PAM integrates approval workflows, multi-factor authentication, and auditing to ensure accountability and compliance.
Integration with Azure AD and Microsoft 365 workloads ensures consistent enforcement across Exchange, SharePoint, Teams, and OneDrive. Audit logs capture all privileged activities, including requests, approvals, and actions performed. Role-specific workflows provide additional scrutiny for critical roles, ensuring alignment with organizational policy. PAM minimizes the attack surface by limiting the duration and scope of elevated privileges, aligning with zero-trust principles.
Conditional Access enforces access based on identity, device, or location, but does not manage privileged role activation.
Identity Protection detects risky sign-ins but does not govern administrative privileges.
Data Loss Prevention prevents sensitive content from leaving the organization, but does not manage privileges.
Privileged Access Management is the correct solution because it enforces temporary activation, approval workflows, and audit tracking. Unlike Conditional Access, it manages privileged workflows; unlike Identity Protection, it governs role activation; and unlike DLP, it focuses on administrative actions rather than content.
Question 191:
You want to automatically classify and encrypt documents containing sensitive HR data stored in SharePoint and OneDrive. Which feature should you implement?
A) Sensitivity Labels
B) Data Loss Prevention
C) Retention Labels
D) Conditional Access
Answer: A
Explanation:
Sensitivity Labels in Microsoft 365 allow organizations to classify and protect sensitive content such as HR documents containing employee information, performance reviews, or payroll data. When applied, these labels can enforce encryption, restrict access to authorized personnel, and prevent
copying, printing, or sharing outside approved recipients. Labels can be applied automatically based on content inspection, keywords, or predefined sensitive information types, ensuring that sensitive HR data is consistently protected across SharePoint, OneDrive, Teams, and Exchange Online.
Persistent protection ensures that security controls remain even if documents are downloaded or shared outside Microsoft 365. Administrators can monitor access, generate compliance reports, and detect unauthorized attempts to open or modify sensitive files. Sensitivity Labels also provide recommended labeling for users to minimize human error while enforcing organizational policies.
Data Loss Prevention can detect sensitive content and block sharing, but it does not embed encryption or persistently restrict access to the content itself.
Retention Labels preserve or delete content based on a schedule, but do not secure the document or control who can access it.
Conditional Access manages access to applications or services based on identity, device, or location, but does not secure the content directly.
Sensitivity Labels are the correct solution because they classify, encrypt, and restrict access to sensitive HR documents, providing persistent protection. Unlike DLP, they secure content rather than only monitoring sharing attempts; unlike Retention Labels, they enforce security rather than lifecycle management; and unlike Conditional Access, they protect the document itself rather than the access environment. Implementing Sensitivity Labels ensures HR data remains confidential, compliant, and secure while allowing authorized collaboration.
Question 192:
You want to prevent accidental sharing of confidential financial documents externally while allowing internal collaboration. Which feature should you implement?
A) Data Loss Prevention
B) Sensitivity Labels
C) Retention Labels
D) Conditional Access
Answer: A
Explanation:
Data Loss Prevention (DLP) in Microsoft 365 allows organizations to prevent accidental or unauthorized external sharing of financial documents while maintaining internal collaboration. DLP policies can detect sensitive content such as bank account numbers, payroll information, or tax data using predefined sensitive information types or custom patterns. When a user attempts to share restricted content externally via Teams, SharePoint, OneDrive, or email, DLP can block the action, provide a policy tip, and optionally notify administrators. This ensures that sensitive financial data is protected while allowing collaboration internally.
DLP applies across all Microsoft 365 workloads, providing consistent enforcement for collaboration and content-sharing scenarios. Administrators can review incident reports, track repeat offenders, and adjust policies to balance productivity with compliance. Temporary overrides with user justification can be configured for business flexibility.
Sensitivity Labels can encrypt content and restrict access, but do not prevent accidental sharing in real time.
Retention Labels preserve or delete content based on a schedule but do not enforce sharing restrictions.
Conditional Access controls access based on device, location, or user identity, but does not inspect content or prevent accidental sharing.
DLP is the correct solution because it monitors content, blocks unauthorized sharing, educates users with policy tips, and provides administrative alerts. Unlike Sensitivity Labels, it governs behavior rather than securing content; unlike Retention Labels, it provides real-time protection; and unlike Conditional Access, it directly controls content sharing. Implementing DLP ensures financial data remains secure while enabling internal collaboration.
Question 193:
You want to preserve emails and Teams messages relevant to ongoing investigations and prevent deletion. Which feature should you implement?
A) eDiscovery Legal Hold
B) Retention Labels
C) Data Loss Prevention
D) Communication Compliance
Answer: A
Explanation:
eDiscovery Legal Hold in Microsoft 365 preserves emails, Teams messages, SharePoint documents, and OneDrive files that are relevant to investigations or legal proceedings. Once Legal Hold is applied, content cannot be deleted or modified, ensuring evidence remains intact and defensible. Legal Hold can target specific users, groups, or locations, reducing the impact on unrelated content. Detailed audit logs capture all actions performed on preserved content, supporting regulatory and legal compliance.
Integration across Microsoft 365 workloads ensures comprehensive coverage, including communication channels and file repositories. Legal Hold also supports content export for review by legal teams or regulatory authorities, enabling structured, defensible processes for investigations or litigation.
Retention Labels manage content lifecycle by preserving or deleting content according to policies, but are not case-specific and cannot selectively prevent deletion for investigations.
Data Loss Prevention prevents sensitive information from leaving the organization, but does not preserve or prevent deletion of content for legal investigations.
Communication Compliance monitors messages for policy violations but does not preserve content for legal purposes.
eDiscovery Legal Hold is the correct solution because it preserves relevant content, prevents deletion, maintains audit trails, and ensures compliance during legal or regulatory investigations. Unlike Retention Labels, it is targeted and case-specific; unlike DLP, it preserves content rather than preventing sharing; and unlike Communication Compliance, it preserves evidence rather than monitoring behavior.
Question 194:
You want to detect employees attempting to upload confidential project files to personal cloud accounts. Which feature should you implement?
A) Insider Risk Management
B) Data Loss Prevention
C) Sensitivity Labels
D) Retention Labels
Answer: A
Explanation:
Insider Risk Management in Microsoft 365 is designed to identify risky employee behavior, such as attempts to exfiltrate confidential project files to personal cloud accounts. It uses machine learning, behavioral analytics, and pattern recognition to detect anomalies such as unusual downloads, bulk file access, or attempts to bypass security controls. Risk scores are calculated based on activity patterns, and alerts are generated for compliance or security teams. Detailed contextual information, including content accessed, user history, and surrounding activities, helps distinguish between malicious, accidental, or benign behavior.
Integration with OneDrive, SharePoint, Teams, and Exchange ensures full coverage of content repositories. Policies can be tailored to departments, specific users, or sensitive content types to mitigate insider risks effectively. Alerts allow security teams to intervene proactively, preventing potential data exfiltration and ensuring regulatory compliance.
Data Loss Prevention can prevent content from being shared externally, but does not provide behavioral monitoring or risk scoring over time.
Sensitivity Labels encrypt and protect content, but do not detect user behavior or insider threats.
Retention Labels preserve content for compliance, but do not provide proactive monitoring of risky actions.
Insider Risk Management is the correct solution because it monitors behavior, evaluates risk, generates alerts, and allows proactive intervention. Unlike DLP, it focuses on behavior rather than content sharing; unlike Sensitivity Labels, it monitors actions rather than securing content; and unlike Retention Labels, it is proactive rather than lifecycle-based.
Question 195:
You want to enforce temporary activation of privileged administrative roles with approval workflows. Which feature should you implement?
A) Privileged Access Management
B) Conditional Access
C) Identity Protection
D) Data Loss Prevention
Answer: A
Explanation:
Privileged Access Management (PAM) in Microsoft 365 enables just-in-time activation of privileged administrative roles. Administrators must request temporary activation for elevated privileges and provide a business justification for approval. This approach enforces the principle of least privilege, minimizing the risk from standing privileges, insider threats, or misconfiguration. PAM integrates approval workflows, multi-factor authentication, and auditing to ensure accountability and compliance with internal policies and regulations.
Integration with Azure AD and Microsoft 365 workloads ensures consistent enforcement across Exchange, SharePoint, Teams, and OneDrive. All privileged activities, including activation requests, approvals, and performed actions, are logged for auditing and compliance purposes. Role-specific approval workflows provide additional scrutiny for critical administrative roles, reducing the potential for misuse. PAM aligns with zero-trust security principles by minimizing the attack surface and limiting exposure of privileged accounts.
Conditional Access manages access based on user, device, or location, but does not govern privileged role activation workflows.
Identity Protection detects risky sign-ins but does not control temporary privileged role activation.
Data Loss Prevention prevents sensitive content from leaving the organization, but does not manage administrative privileges. While DLP excels at detecting and blocking the unauthorized movement of confidential data—such as financial records, personal information, or intellectual property—it operates entirely at the content level. It does not control who can activate privileged roles, approve high-impact administrative tasks, or manage elevated access. Administrative privilege governance requires oversight of identity and operations rather than data flow, and DLP is not designed for that purpose.
Privileged Access Management is the correct solution because it enforces temporary activation, requires approvals, tracks all activities, and mitigates standing privilege risks. PAM ensures that elevated permissions are granted only when needed and only for the minimum duration necessary. This “just-in-time” model eliminates the security exposure created by permanently assigned administrative roles. Approval workflows provide strong organizational controls, allowing senior administrators or security teams to review each request before granting access. Detailed auditing captures every privileged action taken during an elevated session, creating transparency and supporting compliance requirements.
Unlike Conditional Access, it focuses on privileged workflows. Conditional Access determines if a user can sign in or access resources based on risk conditions, but it does not govern the activation or use of privileged roles. Unlike Identity Protection, it manages role activation rather than merely detecting risky sign-ins. And unlike DLP, it controls administrative actions rather than content. Implementing PAM strengthens governance, reduces insider risk, provides defensible audit trails, and significantly enhances the security of privileged accounts across the organization.