Microsoft SC-401 Administering Information Security in Microsoft 365 Exam Dumps and Practice Test Questions Set 3 Q31-45

Microsoft SC-401 Administering Information Security in Microsoft 365 Exam Dumps and Practice Test Questions Set 3 Q31-45

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Question 31:

You need to prevent users from sharing Teams chat messages containing confidential project information outside the organization. Which feature should you implement?

A) Communication Compliance
B) Data Loss Prevention
C) Sensitivity Labels
D) Information Barriers

Answer: B

Explanation:

 Communication Compliance monitors communications to detect policy violations, offensive language, harassment, or risky content. While it is useful for auditing behavior and identifying policy violations, it does not actively prevent data from leaving the organization. It focuses on review and alerting rather than real-time blocking of sensitive information shared externally. Communication Compliance may flag messages for review, but cannot enforce restrictions on sending confidential project data.

Data Loss Prevention (DLP) actively monitors content in Microsoft Teams, Exchange Online, SharePoint Online, and OneDrive. DLP uses predefined sensitive information types, custom rules, and contextual analysis to detect confidential project information. Once a policy is triggered, DLP can block messages, display user policy tips, notify administrators, or allow override with justification. It provides real-time enforcement to prevent sensitive data from leaving the organization. DLP integrates seamlessly with Teams, ensuring that chat messages and file sharing comply with the organization’s data protection policies. It is the most effective solution for proactively enforcing restrictions and preventing leakage.

Sensitivity Labels classify and protect content with encryption, rights management, and access restrictions. They apply protection at the file or document level. While labels secure content and can restrict access to authorized users, they do not actively monitor messages being sent in Teams chats. Labels enforce protection but do not block messages in real time based on chat content. Therefore, they cannot independently prevent external sharing of confidential project information in Teams messages.

Information Barriers restrict communication between defined internal groups to comply with regulatory or conflict-of-interest requirements. They prevent certain segments from communicating internally but do not analyze content for confidentiality or enforce protection on messages shared outside the organization. They are designed for internal separation rather than preventing leakage to external recipients.

Data Loss Prevention is the correct solution because it provides proactive, content-aware protection that enforces organizational policies in real time. It can prevent confidential project information from being shared externally, while providing alerts and reporting for compliance teams. Unlike Communication Compliance, it enforces policy rather than only monitoring; unlike Sensitivity Labels, it acts on message flow, not just content protection; and unlike Information Barriers, it is designed for external data protection.

Question 32:

You need to ensure that documents in SharePoint containing employee personal information cannot be modified or deleted for 7 years. Which feature should you use?

A) Retention Labels
B) Sensitivity Labels
C) Conditional Access
D) Data Loss Prevention

Answer: A

Explanation:

 Retention Labels enforce data retention or deletion schedules in Microsoft 365. They can be applied to emails, documents, and files in SharePoint, OneDrive, and Exchange. By configuring a retention label for 7 years, organizations can ensure that documents containing employee personal information are preserved for that period. Retention labels can prevent deletion during the retention period, protecting against accidental or intentional removal. They can be applied automatically based on conditions, manually by users, or through default labeling policies. Retention labels also integrate with eDiscovery and compliance reporting, allowing administrators to maintain a defensible preservation policy. This ensures regulatory compliance and protects sensitive data over time.

Sensitivity Labels classify content and enforce protection like encryption and access control. While useful for securing content, they do not inherently enforce deletion prevention over a set period. Sensitivity Labels focus on access control rather than lifecycle management, making them unsuitable for enforcing a 7-year immutability policy.

Conditional Access enforces access based on device, location, user risk, or authentication strength. While it ensures that only compliant devices can access resources, it does not manage retention or deletion of content. It cannot preserve files or prevent modifications over a specific period.

Data Loss Prevention monitors content to prevent unauthorized sharing of sensitive information. DLP policies may alert administrators or block external sharing, but they do not control retention or prevent deletion of documents over time.

Retention Labels are the correct solution because they provide defensible retention for a specified period, prevent deletion, and ensure compliance with legal or regulatory requirements. They address both preservation and immutability, unlike the other options that either focus on access control or monitoring.

Question 33:

You want to require justification from administrators before they perform high-risk actions in Microsoft 365, such as deleting audit logs. Which feature should you configure?

A) Privileged Access Management
B) Conditional Access
C) Audit Log Search
D) Microsoft Secure Score

Answer: A

Explanation:

 Privileged Access Management (PAM) enforces just-in-time access for administrators and can require approval or justification before performing high-risk actions. PAM allows organizations to require administrators to submit a business justification before executing sensitive operations, such as deleting audit logs or modifying compliance configurations. This ensures oversight, reduces risk, and creates an auditable trail for all privileged actions. PAM also integrates with roles in Azure AD, enabling granular control over which administrators must use approval workflows and justification.

Conditional Access evaluates device, location, and user risk to enforce access decisions. While Conditional Access can block or require MFA for login, it does not enforce action-level justification for specific administrative operations. Its scope is limited to access policies rather than workflow enforcement for high-risk activities.

Audit Log Search allows searching of user and admin activities across Microsoft 365 workloads. While valuable for investigating incidents, it does not prevent actions or require justification before performing them. It is a reactive tool rather than a proactive enforcement mechanism.

Microsoft Secure Score provides recommendations for improving security posture based on organizational configurations. It does not enforce policies or require justification for specific actions. Secure Score is a monitoring and advisory tool, not an operational control mechanism.

Privileged Access Management is the correct solution because it enforces workflow-based controls for high-risk administrative actions. It ensures justification is submitted, provides audit logs, and reduces the risk of accidental or malicious changes, unlike Conditional Access, Audit Log Search, or Secure Score.

Question 34:

You need to enforce encryption and restrict access to financial reports stored in OneDrive for Finance users only. Which feature should you implement?

A) Sensitivity Labels
B) Retention Labels
C) Data Loss Prevention
D) Information Barriers

Answer: A

Explanation:

 Sensitivity Labels allow classification and protection of files and emails in Microsoft 365. They can enforce encryption, restrict access to specific users, prevent copying or printing, and persist even if the document is downloaded. By applying a sensitivity label to financial reports, the organization can ensure that only Finance users have access. Sensitivity Labels integrate with OneDrive, SharePoint, and Teams, and can be applied manually or automatically using conditions such as keywords, file types, or locations. They provide persistent protection and help prevent accidental or intentional sharing of sensitive financial data.

Retention Labels in Microsoft 365 are designed to manage the lifecycle of organizational data. They allow administrators to define how long emails, documents, and other content must be preserved to comply with regulatory, legal, or business requirements. Retention Labels ensure that critical information is retained for the required period and, when necessary, that it is automatically deleted after the retention period expires. This functionality is essential for compliance reporting, audits, and governance frameworks, ensuring organizations maintain access to necessary records over time. However, Retention Labels are focused exclusively on preserving content—they do not provide security controls such as encryption, access restrictions, or protection against unauthorized viewing or editing. Once content is accessible to a user with permissions, Retention Labels cannot prevent that user from sharing, copying, or altering the content. In other words, Retention Labels safeguard the presence of data rather than its security.

Data Loss Prevention (DLP) policies in Microsoft 365 offer a different type of protection. DLP monitors user actions and can prevent sensitive data from being shared inappropriately. For example, DLP can block the sending of emails containing credit card numbers, social security numbers, or confidential financial reports outside the organization. DLP can also trigger alerts or report incidents for compliance monitoring. While DLP is highly effective at controlling data movement and preventing accidental or malicious leaks, it does not apply persistent encryption or access restrictions to the content itself. Once a user legitimately accesses a file within the allowed context, DLP does not continue to protect that content. The protection exists during transfer or sharing, but it does not provide ongoing, file-level security that prevents unauthorized access after download or internal use.

Information Barriers serve a governance and compliance purpose by restricting internal communication and collaboration between defined groups. They are commonly used in industries such as financial services to prevent conflicts of interest, ensure compliance with regulatory separation rules, and limit interaction between teams that handle sensitive information. While Information Barriers successfully enforce separation policies and prevent prohibited communication between groups, they do not secure the content itself. Files and documents remain accessible to authorized users within each group, and there is no built-in mechanism to encrypt or control access to the underlying data at the file level.

Sensitivity Labels, by contrast, provide a comprehensive and persistent solution for protecting sensitive content. Sensitivity Labels allow administrators to classify data and automatically apply encryption, access restrictions, and usage policies that remain with the content regardless of location. For example, financial reports labeled as “Highly Confidential” can be encrypted so that only authorized personnel can open, edit, or share them. Even if the file is downloaded, shared externally, or copied to another location, the protections remain in place. Sensitivity Labels also support integration with Data Loss Prevention policies, providing layered protection that combines classification, encryption, access control, and monitoring. This makes Sensitivity Labels uniquely capable of meeting both security and compliance requirements simultaneously, offering persistent protection that other options—Retention Labels, DLP, and Information Barriers—cannot fully achieve.

By providing encryption, access restrictions, and persistent protection directly at the file level, Sensitivity Labels ensure that sensitive content, such as financial reports, is safeguarded against unauthorized access while remaining compliant with organizational policies and regulatory standards. This combination of features makes Sensitivity Labels the correct and most effective solution for protecting high-value data in Microsoft 365.

Question 35:

Your organization wants to detect risky behavior where employees attempt to exfiltrate large amounts of sensitive data from SharePoint or OneDrive. Which feature should you configure?

A) Insider Risk Management
B) Data Loss Prevention
C) Sensitivity Labels
D) Retention Labels

Answer: A

Explanation:

 Insider Risk Management identifies patterns of risky user behavior such as mass downloads, unusual file access, copying to external locations, or sharing with unauthorized recipients. It uses machine learning and behavioral analytics to detect potential insider threats proactively. Alerts can be generated, cases can be created for investigation, and workflows allow compliance teams to review actions. This feature helps organizations mitigate internal risks before sensitive data leaves the company. It can monitor both SharePoint and OneDrive, providing visibility into abnormal file activity or policy violations.

Data Loss Prevention enforces content-based policies to block sharing or notify users. While DLP is effective for preventing policy violations, it may not capture broader patterns of risky behavior or identify potential insider threats proactively. DLP is primarily rule-based, whereas Insider Risk Management provides behavioral analysis.

Sensitivity Labels in Microsoft 365 are an essential tool for classifying and protecting organizational content. They allow administrators to apply security settings such as encryption, access restrictions, and visual markings to documents and emails based on their classification. For example, highly confidential files can be labeled so that only authorized personnel can view, edit, or share them. While this approach is effective in preventing unauthorized access and ensuring that sensitive content is protected, Sensitivity Labels do not provide insight into user behavior. They cannot detect attempts by a user to copy, download, or transfer large volumes of protected data to external storage or unsanctioned locations. Essentially, Sensitivity Labels act as a passive safeguard, enforcing protection on content itself but lacking mechanisms to actively monitor for risky actions.

Retention Labels serve a different purpose within Microsoft 365. They are primarily designed to manage the lifecycle of content, specifying how long information should be retained and when it should be deleted in accordance with regulatory, legal, or organizational requirements. Retention Labels ensure that data is preserved for compliance or legal obligations and can automate deletion once retention periods expire. However, similar to Sensitivity Labels, Retention Labels do not provide behavioral monitoring or analytics. They cannot detect suspicious user activity, track attempts to exfiltrate sensitive data, or issue alerts in response to abnormal patterns. Their functionality is focused on governance and compliance rather than proactive risk detection.

Insider Risk Management (IRM), by contrast, addresses these limitations by providing advanced behavioral analytics to detect potential insider threats. IRM continuously monitors user activities across workloads such as SharePoint, OneDrive, Exchange, and Teams, analyzing patterns to identify unusual or risky behavior. For example, IRM can flag scenarios such as an employee accessing sensitive files outside of normal business hours, copying large volumes of data to external drives, or attempting to share confidential documents with unauthorized recipients. When such behavior is detected, IRM generates proactive alerts for administrators or compliance officers, enabling timely investigation and mitigation before data exfiltration or policy violations occur.

Unlike Data Loss Prevention (DLP), which primarily enforces policies at the content or sharing level, Insider Risk Management focuses on behavioral analytics. DLP can block actions based on content types or sharing attempts, but it does not analyze the broader context of user behavior over time. IRM provides a more holistic approach by correlating multiple events and activities to detect patterns indicative of escalating risk or insider threats. Additionally, unlike Sensitivity or Retention Labels, IRM actively monitors users in real time rather than passively protecting or classifying content.

By combining monitoring, analytics, and proactive alerting, Insider Risk Management enables organizations to identify and address internal threats before they result in data loss, reputational damage, or regulatory violations. It is the most suitable solution when the goal is to detect abnormal patterns, assess user behavior, and prevent internal security incidents while maintaining organizational productivity. In scenarios where monitoring for insider threats is critical, IRM provides capabilities that labels and retention policies cannot, making it the correct choice for safeguarding sensitive data and mitigating internal risks.

Question 36:

You need to ensure that all emails containing legal contracts are automatically classified and protected with encryption in Microsoft 365. Which feature should you use?

A) Sensitivity Labels
B) Retention Labels
C) Data Loss Prevention
D) Conditional Access

Answer: A

Explanation:

 Sensitivity Labels allow organizations to classify content such as emails and documents based on their sensitivity. Labels can apply encryption, restrict access to specific users, prevent forwarding, and persist even when content is downloaded. By configuring auto-labeling policies for legal contracts, Microsoft 365 can automatically detect emails containing keywords, patterns, or specific document types and apply the appropriate protection. This ensures that legal contracts are encrypted and only accessible to authorized recipients. Sensitivity Labels integrate across Exchange Online, SharePoint, OneDrive, and Teams, making them effective for persistent protection of sensitive content throughout Microsoft 365.

Retention Labels manage the lifecycle of content by applying retention and deletion schedules. While they are essential for compliance and preserving records for a specific period, they do not apply encryption or restrict access. Retention Labels enforce preservation policies rather than actively protecting content against unauthorized access or sharing, which is the primary requirement for legal contracts.

Data Loss Prevention (DLP) identifies sensitive information and can block messages or file sharing based on policy rules. DLP can prevent emails containing contracts from being sent externally, but it does not inherently apply encryption or persistent access restrictions. DLP operates primarily as a preventative measure during sharing, rather than securing the content at rest.

Conditional Access enforces access rules for users and devices, such as requiring MFA or compliant devices. While important for identity-based security, Conditional Access does not classify emails, encrypt them, or restrict content usage. Its focus is on access control rather than content protection.

Sensitivity Labels are the correct solution because they automatically classify emails containing legal contracts, enforce encryption, and restrict access to authorized users. Unlike Retention Labels, they secure content rather than just preserve it; unlike DLP, they provide persistent protection rather than just monitoring or blocking; and unlike Conditional Access, they protect the content itself, not just the access point.

Question 37:

You need to identify Microsoft 365 users with high-risk sign-ins due to leaked credentials or unusual location activity. Which tool should you use?

A) Identity Protection
B) Conditional Access
C) Microsoft Secure Score
D) Privileged Identity Management

Answer: A

Explanation:

 Identity Protection in Azure AD provides risk detection and remediation for users and sign-ins. It evaluates signals such as leaked credentials, unfamiliar locations, impossible travel, atypical IP addresses, and other anomalies to detect high-risk activities. Identity Protection assigns risk levels to users and sign-ins and can automatically enforce remediation actions such as requiring password resets or blocking access. Reports provide visibility into risk trends and help administrators prioritize the investigation of high-risk users. This aligns directly with the need to identify users with high-risk sign-ins due to compromised credentials or unusual activity patterns.

Conditional Access can enforce access restrictions based on conditions like location, device state, or risk level. While it can block high-risk sign-ins once detected, it does not generate risk scores or analyze sign-in patterns to identify compromised accounts proactively. Conditional Access relies on signals such as device compliance and location, but does not provide comprehensive risk detection analytics.

Microsoft Secure Score is a tool that evaluates security configuration across Microsoft 365 and provides recommendations for improvement. While it helps organizations improve security posture, it does not monitor individual sign-ins or detect high-risk users. It is a strategic advisory tool rather than a real-time detection mechanism.

Privileged Identity Management manages administrative roles with just-in-time access and approval workflows. While it reduces standing privileges and protects sensitive accounts, it does not detect high-risk sign-ins for regular users or analyze unusual activity for potential credential compromise.

Identity Protection is the correct solution because it detects risky user sign-ins, evaluates risk levels, and provides both alerts and automated remediation. Unlike Conditional Access, which enforces rules after risk is detected, Identity Protection proactively identifies the risk. Unlike Secure Score, it focuses on user behavior rather than configuration posture. Unlike PIM, it addresses general users, not just privileged accounts.

Question 38:

You want to require approval from a manager before a user can share a sensitive document externally. Which Microsoft 365 feature should you configure?

A) Data Loss Prevention with Policy Tips
B) Sensitivity Labels
C) Conditional Access
D) SharePoint Access Requests

Answer: A

Explanation:

 Data Loss Prevention (DLP) with Policy Tips can detect when a user attempts to share sensitive documents externally. Policy Tips inform the user of potential violations and can enforce actions such as requiring a business justification or approval before sharing. DLP can block sharing until the user provides justification, alert administrators, and track compliance activity. This approach provides both real-time prevention and oversight for sensitive document sharing. It ensures that sensitive content is not inadvertently or intentionally exfiltrated without managerial approval.

Sensitivity Labels classify and protect documents using encryption, access restrictions, or usage limitations. While labels control access and rights, they do not inherently provide workflow-based approval mechanisms for external sharing. Labels secure content but cannot require manager approval during sharing attempts.

Conditional Access enforces access to applications based on device, location, or risk. While it can block access from unauthorized devices or locations, it does not provide approval workflows for document sharing. Conditional Access controls access, not content-sharing approval.

SharePoint Access Requests allow users to request access to specific SharePoint resources. While this manages permission requests for viewing or editing content, it is not designed to enforce approval for external sharing of sensitive documents. Access Requests are limited to internal access control rather than managing compliance workflows.

Data Loss Prevention with Policy Tips is the correct solution because it can detect sensitive content, block external sharing, require justification or approval, notify administrators, and provide compliance reporting. Unlike Sensitivity Labels, it actively enforces approval; unlike Conditional Access, it controls content rather than access; unlike SharePoint Access Requests, it works at the document content level and includes compliance workflows.

Question 39:

Your organization wants to detect when employees are attempting to exfiltrate sensitive files via personal email or unsanctioned cloud apps. Which feature should you configure?

A) Microsoft Purview Insider Risk Management
B) Data Loss Prevention
C) Conditional Access
D) Retention Labels

Answer: A

Explanation:

 Insider Risk Management proactively detects risky user behaviors such as exfiltration of sensitive files. It monitors patterns like mass downloads, copying files to personal drives, using unsanctioned cloud apps, or emailing sensitive content externally. The feature uses machine learning and analytics to identify potentially malicious or negligent actions. Alerts are generated, and cases can be created for investigation by security or compliance teams. This enables organizations to prevent or remediate potential insider threats before they cause significant damage. It also allows integration with communication channels like SharePoint, OneDrive, and Teams, ensuring comprehensive monitoring across workloads.

Data Loss Prevention monitors and enforces policies to prevent sensitive data from being shared inappropriately. While DLP is effective for preventing the sharing of sensitive content, it may not detect broader patterns of exfiltration or risky behavior across multiple systems. DLP is more rule-based and reactive, whereas Insider Risk Management provides behavioral analytics for proactive detection.

Conditional Access enforces access policies based on conditions like device compliance, user risk, or location. While it can prevent access from risky locations or devices, it does not monitor ongoing user behavior or detect exfiltration attempts. It is focused on access control rather than insider threat detection.

Retention Labels manage the preservation and deletion of content over time. They are important for regulatory compliance, but do not monitor user behavior or prevent data exfiltration. Retention policies govern lifecycle management, not proactive threat detection.

Insider Risk Management is the correct solution because it identifies high-risk behavior, monitors across workloads, generates alerts, and supports investigations. Unlike DLP, it analyzes patterns and behavior rather than only content rules. Unlike Conditional Access, it monitors actions rather than access decisions. Unlike Retention Labels, it actively detects risk rather than passively preserving data.

Question 40:

You want to prevent users from accessing Microsoft 365 from unmanaged or non-compliant devices. Which feature should you configure?

A) Conditional Access
B) Privileged Identity Management
C) Data Loss Prevention
D) Sensitivity Labels

Answer: A

Explanation:

 Conditional Access enforces access policies based on signals such as device compliance, user location, risk level, and authentication method. By integrating with Intune, Conditional Access can evaluate whether a device is enrolled, compliant with security policies, or managed before granting access to Microsoft 365 applications. Organizations can configure policies to block access for non-compliant devices, enforce multi-factor authentication, or require approval for high-risk sign-ins. Conditional Access provides real-time enforcement, ensuring that only devices meeting security standards can access resources. This is critical for preventing unauthorized access from unmanaged or insecure devices.

Privileged Identity Management (PIM) manages administrative roles, just-in-time access, and approval workflows. While important for reducing standing privileges and protecting sensitive accounts, it does not enforce device compliance for general user access. PIM focuses on administrative oversight rather than device-based access control for standard users.

Data Loss Prevention enforces policies to prevent sensitive data from being shared improperly. While it can prevent data exfiltration, it does not control which devices can access Microsoft 365 services. DLP is content-focused, not access-focused, making it unsuitable for restricting unmanaged devices.

Sensitivity Labels classify and protect files and emails by applying encryption and access restrictions. While effective for protecting content, they do not control which devices are allowed to access applications. Labels operate at the content level and cannot enforce device-based access control.

Conditional Access is the correct solution because it evaluates device compliance, enforces policies in real time, and ensures only managed or compliant devices can access Microsoft 365. Unlike PIM, it applies to all users; unlike DLP or Sensitivity Labels, it enforces access rather than content protection. It is the primary tool for implementing device-based access restrictions in a zero-trust model.

Question 41:

You need to prevent users from sharing files labeled “Confidential” outside the organization while still allowing internal collaboration. Which feature should you use?

A) Sensitivity Labels with encryption and sharing restrictions
B) Retention Labels
C) Data Loss Prevention without Policy Tips
D) Communication Compliance

Answer: A

Explanation:

 Sensitivity Labels with encryption and sharing restrictions allow organizations to classify content such as emails and files according to sensitivity. When a document is labeled “Confidential,” policies can enforce encryption, restrict access to authorized internal users, prevent sharing with external recipients, and block actions like copying, downloading, or printing. Sensitivity Labels integrate with Microsoft 365 services like SharePoint, OneDrive, Teams, and Exchange, ensuring consistent protection across all collaboration platforms. By enforcing these controls, files remain usable internally for collaboration while external sharing is blocked. Sensitivity Labels can also be applied automatically using auto-labeling policies that detect keywords, sensitive information types, or locations, reducing reliance on user judgment.

Retention Labels manage the lifecycle of content by enforcing retention or deletion periods. While useful for compliance and regulatory purposes, retention labels do not control access or sharing behavior. They preserve content but cannot prevent a “Confidential” file from being sent outside the organization or accessed by unauthorized users. Retention labels are about managing data lifecycle, not real-time content protection.

Data Loss Prevention without Policy Tips can detect sensitive information and block external sharing, but without Policy Tips, it does not provide user awareness or the ability to educate users about policy violations. DLP may prevent external sharing based on content patterns, but it lacks the granularity of sensitivity labels, which can enforce persistent encryption and user-level restrictions. DLP alone may also generate false positives if the content context is not fully understood, whereas sensitivity labels provide clearer classification-based enforcement.

Communication Compliance monitors internal communications to detect policy violations, harassment, or offensive language. While it can flag messages or content, it does not prevent sharing or enforce encryption. It is primarily a monitoring and review tool, not a preventative mechanism for external data sharing.

Sensitivity Labels with encryption and sharing restrictions are the correct solution because they allow internal collaboration, enforce external sharing restrictions, and persist across Microsoft 365 services. Unlike Retention Labels, they protect content rather than just manage retention. Unlike DLP without Policy Tips, they provide persistent protection with precise control. Unlike Communication Compliance, they actively prevent unauthorized sharing rather than just monitoring behavior.

Question 42:

You need to investigate which users accessed and modified sensitive HR documents over the past 6 months. Which Microsoft 365 feature should you use?

A) Audit Log Search
B) Retention Labels
C) Data Loss Prevention
D) Conditional Access

Answer: A

Explanation:

 Audit Log Search provides a comprehensive record of user and admin activities across Microsoft 365 services, including SharePoint, OneDrive, Exchange, Teams, and Azure AD. It allows administrators to search for events such as file access, modifications, deletions, sharing, and sign-ins. By specifying a timeframe (such as the past 6 months), administrators can retrieve detailed logs of who accessed sensitive HR documents, when they accessed them, and what actions were performed. This capability is critical for investigations, compliance audits, and forensic analysis. Audit Log Search ensures a complete, auditable history of activities, supporting regulatory compliance and internal governance.

Retention Labels manage the lifecycle of content and enforce preservation or deletion policies. While important for ensuring HR documents are kept for required durations, retention labels do not provide visibility into who accessed or modified files. They govern retention, not auditing.

Data Loss Prevention identifies and blocks sensitive content from being shared inappropriately. While DLP can generate alerts when sensitive files are sent externally, it does not provide a detailed audit trail of access or modifications over time. DLP focuses on proactive prevention rather than historical investigation.

Conditional Access enforces policies based on device compliance, user location, or risk during sign-in. While important for access control, it does not track detailed actions such as document modifications or file access. Conditional Access governs access decisions but is not an auditing tool.

Audit Log Search is the correct solution because it provides detailed, searchable records of user activities, including access and modifications to sensitive documents over a defined period. Unlike Retention Labels, it provides visibility rather than preservation. Unlike DLP, it tracks actions rather than enforcing preventive measures. Unlike Conditional Access, it logs activities rather than controlling access.

Question 43:

You want to detect when users attempt to upload large numbers of sensitive files to personal cloud storage. Which feature should you configure?

A) Insider Risk Management
B) Data Loss Prevention
C) Sensitivity Labels
D) Retention Policies

Answer: A

Explanation:

 Insider Risk Management in Microsoft 365 is designed to detect, investigate, and respond to potentially risky behavior by employees or contractors. It monitors file activity such as mass downloads, uploads to personal cloud storage, or attempts to share sensitive information externally. By using machine learning, Insider Risk Management identifies anomalous patterns, evaluates risk, and generates alerts. Compliance teams can then review these cases and take appropriate action. This proactive monitoring is essential for identifying potential data exfiltration, whether intentional or accidental. The feature integrates across Microsoft 365 workloads, including SharePoint, OneDrive, and Teams, ensuring that risky behavior is detected wherever sensitive data resides.

Data Loss Prevention enforces content-based policies to prevent sensitive data from being shared inappropriately. While DLP can block file uploads or external sharing, it is rule-based and may not detect broader patterns of abnormal user behavior, such as multiple uploads over time or cumulative exfiltration attempts. DLP is more reactive, whereas Insider Risk Management is proactive and behavior-focused.

Sensitivity Labels classify and protect content using encryption and access restrictions. Labels secure sensitive files but do not monitor user behavior or detect exfiltration attempts. They focus on protecting the data itself rather than analyzing actions that indicate risk.

Retention Policies govern the preservation and deletion of content to meet regulatory requirements. While critical for compliance, they do not monitor user actions or detect attempts to exfiltrate data. Retention policies focus on content lifecycle management rather than security behavior analytics.

Insider Risk Management is the correct solution because it monitors user activity, detects anomalous behavior, generates alerts, and allows investigations into potential exfiltration. Unlike DLP, it analyzes patterns and context rather than enforcing only static rules. Unlike Sensitivity Labels, it monitors user behavior. Unlike Retention Policies, it proactively identifies risk rather than managing retention.

Question 44:

You want to ensure users cannot print or download sensitive documents labeled “Highly Confidential” from unmanaged devices. Which Microsoft 365 feature should you implement?

A) Endpoint Data Loss Prevention
B) Sensitivity Labels only
C) Conditional Access only
D) Retention Policies

Answer: A

Explanation:

 Endpoint Data Loss Prevention (Endpoint DLP) extends traditional DLP policies to managed devices, allowing administrators to monitor and control actions like printing, copying, downloading, or uploading sensitive files. When integrated with Sensitivity Labels, Endpoint DLP can enforce protection based on content classification, such as “Highly Confidential.” For unmanaged or non-compliant devices, Endpoint DLP can block these risky actions in real time, ensuring sensitive data is not exposed. Policies can generate alerts, log incidents, and provide compliance reporting. Endpoint DLP is particularly effective because it monitors file activities on the endpoint rather than relying solely on cloud-based enforcement. This ensures that sensitive files remain protected even when users attempt to use unmanaged devices, maintaining the security of high-risk content across the organization.

Sensitivity Labels classify content and can enforce encryption and access restrictions. While important for protecting sensitive content, labels alone do not enforce actions on the device level, such as preventing printing or downloads from unmanaged devices. Labels secure content but do not provide active device-based enforcement.

Conditional Access enforces access controls based on device compliance, user risk, or location. While it can block access from unmanaged devices, it does not control specific file-level actions like printing, downloading, or uploading once the user has access. Conditional Access governs access but does not monitor or enforce endpoint activity.

Retention Policies govern how long content is preserved or deleted. They do not restrict printing, downloading, or uploading actions. Retention policies manage content lifecycle rather than security enforcement at the endpoint level.

Endpoint DLP is the correct solution because it enforces device-level controls in real time, integrates with Sensitivity Labels for classification-based protection, blocks risky actions like printing or downloading from unmanaged devices, and provides alerts and reporting. Unlike Sensitivity Labels alone, it acts on endpoint activities. Unlike Conditional Access, it enforces file-specific controls rather than just access. Unlike Retention Policies, it ensures proactive security rather than lifecycle management.

Question 45:

You need to ensure Teams messages related to investigations are preserved even if users attempt to delete them. Which Microsoft 365 feature should you configure?

A) eDiscovery Legal Hold
B) Retention Labels
C) Communication Compliance
D) Microsoft Defender for Cloud Apps

Answer: A

Explanation:

 eDiscovery Legal Hold is a Microsoft 365 feature that preserves content such as Teams messages, emails, SharePoint files, and OneDrive documents for legal or regulatory investigations. Once a legal hold is applied, the system ensures that relevant content is retained even if users attempt to delete or modify it. Legal Hold integrates with eDiscovery cases, allowing compliance and legal teams to search, review, and export preserved content while maintaining a defensible audit trail. Teams messages, channels, and chats are included, making it ideal for investigations where communications are critical evidence. Legal Hold prevents accidental or malicious deletion, ensuring all relevant content is preserved for the duration of the investigation or until the hold is released.

Retention Labels enforce preservation or deletion policies based on defined timeframes. While they can retain content for compliance, they do not target specific users or investigation scenarios. Retention Labels apply broadly based on content type or location rather than on case-specific investigative needs. They are insufficient for ensuring evidence is preserved in legal matters.

Communication Compliance monitors internal communications for policy violations, offensive language, or regulatory risks. While it can flag messages for review, it does not enforce preservation or prevent deletion. Its primary function is monitoring and auditing rather than preserving content for legal purposes.

Microsoft Defender for Cloud Apps monitors cloud activity for risky behavior and can block downloads, uploads, or sharing attempts. While useful for protecting data from leaks, it does not ensure preservation of messages or content for legal investigations. Defender for Cloud Apps is focused on security threats rather than legal retention.

eDiscovery Legal Hold is the correct solution because it preserves Teams messages and related content even if users try to delete them. It provides case-based preservation, search, review, and export capabilities, making it ideal for investigations. Unlike Retention Labels, it is targeted to investigative cases. Unlike Communication Compliance, it ensures preservation rather than just monitoring. Unlike Defender for Cloud Apps, it focuses on retaining content rather than preventing data loss.