Microsoft SC-401Administering Information Security in Microsoft 365 Exam Dumps and Practice Test Questions Set 5 Q61-75

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Question 61:

You want to monitor employee communications to detect potential harassment or offensive language in Teams chats. Which Microsoft 365 feature should you configure?

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

Answer: A

Explanation:

 Communication Compliance in Microsoft 365 helps organizations detect, review, and remediate policy violations in internal communications such as Teams chats, emails, or Yammer posts. It uses machine learning and pattern matching to flag potential harassment, offensive language, sensitive information leaks, or regulatory noncompliance. Alerts are generated for compliance officers to review and act on, providing an automated mechanism to identify inappropriate behavior proactively. Communication Compliance helps organizations maintain a safe and compliant workplace, ensuring that employee communications adhere to organizational policies. It integrates with Teams, Exchange, and other Microsoft 365 workloads for comprehensive coverage of employee messaging.

Data Loss Prevention (DLP) is designed to prevent sensitive information from leaving the organization. While DLP can block the sharing of sensitive content or generate alerts for compliance violations, it does not focus on monitoring behavioral or communication policy violations such as harassment or offensive language.

Sensitivity Labels classify and protect content with encryption and access restrictions. They enforce security policies on documents and emails, but do not monitor internal communications for inappropriate language or behavior. Labels focus on content protection rather than monitoring employee communications.

Retention Labels enforce preservation or deletion policies for content, ensuring compliance with regulatory requirements. While they preserve communications for auditing purposes, they do not proactively identify policy violations or flag offensive content for review.

Communication Compliance is the correct solution because it proactively monitors internal communications, detects harassment or offensive language, generates alerts, and enables compliance teams to investigate incidents. Unlike DLP, it focuses on behavioral policies rather than data protection; unlike Sensitivity Labels, it monitors interactions rather than securing content; and unlike Retention Labels, it acts proactively rather than merely preserving content for later review.

Question 62:

You want to block access to Microsoft 365 resources from devices that do not meet your organization’s security standards. Which feature should you implement?

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

Answer: A

Explanation:

 Conditional Access in Microsoft 365 enforces access policies based on various signals such as device compliance, user location, risk level, and application type. By integrating with Microsoft Intune or other endpoint management solutions, Conditional Access can verify if a device meets the organization’s security standards before granting access. Policies can block devices that are non-compliant, require multi-factor authentication (MFA), or enforce session controls to limit risk. This ensures that only secure, trusted devices access corporate resources, reducing the likelihood of data breaches or unauthorized access. Conditional Access policies provide a core mechanism for implementing a zero-trust security model in Microsoft 365.

Data Loss Prevention (DLP) monitors and protects sensitive content from being shared or leaked. While important for data protection, it does not enforce access controls based on device security or compliance. DLP focuses on content monitoring and control rather than device authentication or compliance.

Sensitivity Labels protect files and emails by applying encryption and usage restrictions. They secure content but do not control which devices can access Microsoft 365 applications. Labels enforce content security rather than device compliance.

Retention Policies govern the preservation and deletion of content for regulatory or compliance purposes. They ensure data is retained or disposed of according to policy, but do not control access to applications based on device status or security compliance.

Conditional Access is the correct solution because it enforces device compliance, blocks access from non-secure devices, and integrates with endpoint management to ensure a secure environment. Unlike DLP, it controls access rather than content; unlike Sensitivity Labels, it protects access rather than data; and unlike Retention Policies, it acts in real time rather than preserving content.

Question 63:

You want to prevent employees from uploading sensitive financial files to personal cloud storage. Which feature should you configure?

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

Answer: A

Explanation:

 Insider Risk Management proactively detects potentially risky behavior by employees, including attempts to exfiltrate sensitive files to personal cloud storage. It uses behavioral analytics, machine learning, and activity monitoring across Microsoft 365 workloads such as OneDrive, SharePoint, Teams, and Exchange to identify unusual patterns, such as mass downloads, copying files to personal drives, or sending sensitive content externally. When a risky activity is detected, alerts are generated, and compliance teams can review and investigate incidents. This proactive approach helps prevent data exfiltration and insider threats before significant damage occurs. Integration across Microsoft 365 ensures comprehensive visibility into high-risk user behavior.

Data Loss Prevention (DLP) enforces content-based policies that block or alert on inappropriate sharing of sensitive information. While DLP can prevent specific actions, it is rule-based and primarily reactive. DLP may not capture broader behavioral patterns, such as mass exfiltration attempts across multiple files or over time.

Retention Labels enforce the preservation or deletion of content according to compliance requirements. They ensure data is retained but do not detect or prevent risky user behavior. Retention Labels operate at the content lifecycle level rather than monitoring user actions.

Sensitivity Labels classify and protect content using encryption or access restrictions. While they protect sensitive files from unauthorized access, they do not actively monitor user behavior or detect attempts to upload files to personal cloud storage. Labels enforce content protection but do not prevent insider threats.

Insider Risk Management is the correct solution because it monitors user behavior, detects anomalous activity, generates alerts, and enables compliance teams to intervene before data exfiltration occurs. Unlike DLP, it analyzes behavior patterns rather than just content rules; unlike Retention Labels, it acts proactively rather than preserving content; and unlike Sensitivity Labels, it monitors actions rather than just securing content.

Question 64:

You want to enforce retention of Teams chats and emails for regulatory purposes and prevent users from permanently deleting them. Which Microsoft 365 feature should you configure?

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

Answer: A

Explanation:

 Retention Labels in Microsoft 365 enforce content retention policies to meet regulatory, legal, or organizational requirements. By applying a retention label to Teams chats, emails, or other content, administrators can prevent users from permanently deleting messages for a defined period. Labels can be applied manually or automatically and allow administrators to enforce preservation, review, or eventual deletion. This ensures compliance with legal and regulatory obligations, such as industry-specific retention requirements. Retention Labels also provide audit logs for compliance reporting, creating a defensible framework to demonstrate adherence to regulatory obligations.

Sensitivity Labels classify and protect content using encryption or access restrictions. While they secure information, they do not enforce retention periods or prevent deletion for compliance purposes. Sensitivity Labels focus on protecting content rather than preserving it.

Data Loss Prevention prevents sensitive information from being shared inappropriately. While DLP protects data, it does not enforce retention policies or prevent deletion for regulatory compliance. DLP focuses on content security rather than lifecycle management.

Conditional Access controls access to Microsoft 365 apps based on device, location, or risk signals. It does not manage content retention or prevent deletion. Conditional Access focuses on authentication and access, not preservation of communications.

Retention Labels are the correct solution because they enforce retention, prevent deletion, and provide audit capabilities to ensure regulatory compliance. Unlike Sensitivity Labels, they focus on lifecycle management; unlike DLP, they preserve content rather than preventing leaks; and unlike Conditional Access, they enforce retention rather than access.

Question 65:

You want to detect high-risk sign-ins and automatically require password resets for compromised accounts. Which Microsoft 365 feature should you configure?

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

Answer: A

Explanation:

 Identity Protection in Microsoft 365 detects compromised accounts and risky sign-ins by analyzing signals such as leaked credentials, impossible travel, unusual IP locations, and atypical login behavior. When a high-risk sign-in is detected, Identity Protection can automatically enforce remediation actions, such as requiring a password reset, blocking access, or requiring MFA. It assigns risk scores to both users and sign-ins, enabling administrators to prioritize investigation and response. This proactive detection and automated response help prevent unauthorized access and potential data breaches caused by compromised accounts. Identity Protection integrates with Azure AD and Microsoft 365, providing comprehensive security monitoring and remediation.

Conditional Access enforces access policies based on device compliance, location, or user risk. While Conditional Access can enforce MFA or block access for risky sign-ins, it does not proactively assign risk scores or automatically trigger password resets for compromised accounts. Conditional Access is reactive to conditions but does not analyze account risk comprehensively.

Data Loss Prevention monitors content for sensitive information and prevents policy violations. While DLP protects data, it does not detect compromised accounts, risky sign-ins, or enforce password resets. Its focus is on protecting content rather than user identity.

Sensitivity Labels classify and protect content using encryption and access restrictions. They do not monitor sign-ins, detect account compromise, or enforce identity-related remediation actions. Labels focus on content protection, not user authentication or risk assessment.

Identity Protection is the correct solution because it detects high-risk sign-ins, assigns risk levels, and triggers automatic remediation, such as password resets. Unlike Conditional Access, it proactively evaluates risk rather than simply enforcing access; unlike DLP, it focuses on user accounts rather than content; and unlike Sensitivity Labels, it addresses authentication and identity protection rather than data classification.

Question 66:

You want to block access to Microsoft 365 apps from unmanaged devices while still allowing access from compliant devices. Which feature should you configure?

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

Answer: A

Explanation:

 Conditional Access in Microsoft 365 enforces policies based on device compliance, user location, risk levels, and application access. By integrating with Microsoft Intune, Conditional Access can evaluate whether a device is managed and compliant before granting access to Microsoft 365 applications like Exchange Online, SharePoint, Teams, and OneDrive. If the device is unmanaged, access can be blocked or restricted, ensuring sensitive organizational data is not exposed to insecure endpoints. Policies can also require additional security measures such as multi-factor authentication (MFA) or session controls for compliant devices. Conditional Access enables organizations to implement zero-trust principles, reducing the risk of unauthorized access while maintaining productivity for authorized devices.

Data Loss Prevention (DLP) enforces policies for content sharing and prevents sensitive information from being leaked. While DLP protects data, it does not control access based on device compliance. DLP operates at the content level rather than at the authentication and access level.

Sensitivity Labels classify and protect files and emails with encryption and usage restrictions. Labels secure content but do not determine whether a device is allowed to access Microsoft 365 applications. They focus on protecting files rather than enforcing device-based access policies.

Retention Policies govern the preservation and deletion of content to meet regulatory requirements. They ensure compliance but do not block access to applications based on device compliance. Retention policies manage content lifecycle rather than security access.

Conditional Access is the correct solution because it evaluates device compliance in real time and enforces access policies accordingly. Unlike DLP, it governs access rather than content; unlike Sensitivity Labels, it enforces device-level policies; and unlike Retention Policies, it provides active protection rather than lifecycle management.

Question 67:

You want to ensure that privileged administrators only have access to high-risk roles for a limited time and must provide justification before activating them. Which feature should you use?

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

Answer: A

Explanation:

 Privileged Access Management (PAM) in Microsoft 365 enforces just-in-time access for privileged roles. Administrators do not have permanent access to high-risk roles; they must request activation and justify performing specific actions. PAM enforces workflow approval and ensures that privileged operations are logged, providing an auditable trail for compliance and regulatory reporting. By limiting standing privileges and requiring approval for high-risk tasks, PAM minimizes the risk of accidental or malicious changes while maintaining operational security. Integration with Azure AD roles ensures that the activation process and logging are consistent and comprehensive.

Conditional Access controls access based on device, location, and user risk. While it enforces authentication and session policies, it does not provide just-in-time privileged role activation or require justification for high-risk administrative actions.

Identity Protection evaluates user and sign-in risk and can trigger automated responses such as MFA or account lockdowns. While it helps protect against compromised accounts, it does not manage privileged role activations, justification workflows, or auditing of administrative tasks.

Data Loss Prevention enforces policies to prevent sensitive content from leaving the organization. DLP is content-focused and does not manage administrative privileges, role activation, or auditing of high-risk administrative actions.

Privileged Access Management is the correct solution because it enforces just-in-time access, requires justification, logs high-risk activities, and provides compliance reporting. Unlike Conditional Access, it focuses on privileged workflows; unlike Identity Protection, it governs role activation rather than risk detection; and unlike DLP, it focuses on administrative control rather than data security.

Question 68:

You need to prevent users from sharing files labeled “Highly Confidential” externally, while allowing internal collaboration. Which feature should you configure?

A) Sensitivity Labels with external sharing restrictions
B) Retention Labels
C) Data Loss Prevention without Policy Tips
D) Conditional Access

Answer: A

Explanation:

 Sensitivity Labels allow organizations to classify files and apply persistent protection. For files labeled “Highly Confidential,” policies can enforce encryption, restrict access to authorized internal users, and prevent sharing with external recipients. The protection persists even if files are moved or downloaded, ensuring that sensitive content is safeguarded across SharePoint, OneDrive, Teams, and Exchange. Sensitivity Labels can be applied manually by users or automatically based on content type or sensitive information patterns, ensuring consistent enforcement without relying on user awareness alone. This allows internal collaboration while blocking external exposure, making it suitable for high-value or sensitive organizational data.

Retention Labels govern content retention and deletion schedules to meet regulatory requirements. While essential for compliance, Retention Labels do not prevent external sharing or enforce encryption. They focus on lifecycle management rather than active content protection.

Data Loss Prevention without Policy Tips can detect and block certain sensitive content from being shared externally, but it lacks user guidance and does not enforce persistent encryption or labeling. DLP is reactive and rule-based, whereas Sensitivity Labels provide continuous content protection and classification.

Conditional Access enforces authentication and access policies based on location, device, or risk. While useful for securing access to applications, Conditional Access does not prevent the actual sharing of labeled files or enforce file-level restrictions.

Sensitivity Labels with external sharing restrictions are the correct solution because they provide persistent encryption, prevent unauthorized sharing, and allow internal collaboration. Unlike Retention Labels, they enforce protection rather than retention; unlike DLP without Policy Tips, they provide persistent security; and unlike Conditional Access, they control content rather than access.

Question 69:

You want to detect abnormal patterns of data exfiltration by users in OneDrive and SharePoint. Which Microsoft 365 feature should you implement?

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

Answer: A

Explanation:

 Insider Risk Management proactively monitors user behavior to detect abnormal patterns that may indicate data exfiltration or other malicious activity. By analyzing actions such as bulk downloads, copying files to personal cloud storage, or sharing sensitive documents externally, it identifies risky behavior that could compromise organizational data. Alerts are generated, and cases can be assigned to compliance teams for investigation. Machine learning models enhance detection by differentiating between normal and unusual user behavior across Microsoft 365 workloads, including OneDrive, SharePoint, Teams, and Exchange. Insider Risk Management ensures proactive identification of potential insider threats, enabling organizations to intervene before sensitive data is leaked.

Data Loss Prevention (DLP) enforces content-based rules to prevent unauthorized sharing of sensitive data. While effective at blocking the sharing or sending of specific content, DLP does not monitor user behavior patterns over time or identify cumulative risk. DLP is reactive and rules-based rather than behavior-driven.

Sensitivity Labels classify and protect content using encryption or access restrictions. While labels secure sensitive files, they do not detect risky behavior or abnormal exfiltration attempts. Labels focus on protecting content rather than analyzing user actions.

Retention Labels enforce preservation or deletion schedules. They are critical for compliance, but do not monitor user behavior or detect anomalous activity. Retention Labels focus on the content lifecycle rather than identifying insider threats.

Insider Risk Management is the correct solution because it monitors user actions, detects abnormal patterns, generates alerts, and allows for proactive intervention. Unlike DLP, it is behavior-focused rather than rule-based; unlike Sensitivity Labels, it monitors actions rather than protecting content; and unlike Retention Labels, it identifies risk rather than preserving content.

Question 70:

You need to ensure that emails containing sensitive financial data cannot be forwarded, printed, or copied by recipients outside your organization. Which feature should you implement?

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

Answer: A

Explanation:

 Sensitivity Labels in Microsoft 365 enable organizations to classify and protect emails containing sensitive data. By applying a label such as “Highly Confidential,” policies can enforce encryption and restrict actions such as forwarding, printing, or copying. These protections persist even if the email is sent outside the organization, ensuring that sensitive financial data is not exposed to unauthorized recipients. Sensitivity Labels integrate with Exchange Online and Outlook, as well as other Microsoft 365 workloads, providing consistent protection across multiple communication and collaboration platforms. Labels can be applied manually or automatically based on content, keywords, or sensitive information types.

Retention Labels enforce preservation or deletion schedules. While they ensure compliance with regulatory requirements, they do not restrict recipient actions or prevent forwarding, printing, or copying. Retention focuses on the content lifecycle rather than usage control.

Data Loss Prevention (DLP) can block sensitive content from being sent or shared outside the organization and generate alerts. However, DLP does not provide protection on emails once they are delivered; recipients may still be able to print or copy content if encryption and restrictions are not applied. DLP is effective for proactive prevention but lacks persistent content-level enforcement.

Conditional Access enforces access to Microsoft 365 apps based on device compliance, location, or user risk. While it restricts access to applications, it does not prevent recipients from forwarding, printing, or copying the content of emails. Conditional Access focuses on access control rather than content protection.

Sensitivity Labels are the correct solution because they classify content, enforce encryption, restrict actions, and provide persistent protection for sensitive financial emails. Unlike Retention Labels, they control usage rather than lifecycle; unlike DLP, they provide persistent protection; and unlike Conditional Access, they protect the content itself rather than application access.

Question 71:

You want to automatically classify and encrypt documents containing personally identifiable information (PII) when stored in OneDrive or SharePoint. Which feature should you implement?

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

Answer: A

Explanation:

 Sensitivity Labels in Microsoft 365 enable organizations to classify and protect content based on its sensitivity. By configuring labels for documents containing personally identifiable information (PII), administrators can automatically apply encryption and restrict access to authorized users only. Integration with SharePoint and OneDrive allows automatic labeling based on content analysis using sensitive information types or keyword patterns. This ensures that sensitive documents are protected consistently, regardless of where they are stored or how they are shared internally. Labels can also enforce additional restrictions, such as preventing printing, copying, or sharing externally, ensuring that PII remains secure throughout its lifecycle.

Retention Labels enforce preservation or deletion schedules for content, but do not automatically encrypt or classify content based on sensitivity. Retention focuses on compliance retention requirements rather than security.

Data Loss Prevention (DLP) monitors and prevents inappropriate sharing of sensitive information. While DLP can detect PII and block sharing attempts, it does not automatically encrypt files or apply classification policies. DLP is reactive and rule-based, whereas Sensitivity Labels provide proactive, persistent protection.

Conditional Access enforces access to Microsoft 365 apps based on device, location, or user risk. It does not classify or encrypt content stored in OneDrive or SharePoint. Conditional Access focuses on access management rather than content protection.

Sensitivity Labels are the correct solution because they provide automatic classification, persistent encryption, access restrictions, and content usage controls. Unlike Retention Labels, they protect sensitive data; unlike DLP, they enforce persistent protection rather than just monitoring; and unlike Conditional Access, they secure the content itself rather than application access.

Question 72:

You need to monitor and respond to risky user behavior, such as attempting to exfiltrate corporate data to personal email or cloud accounts. Which feature should you implement?

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

Answer: A

Explanation:

 Insider Risk Management in Microsoft 365 is designed to detect and respond to high-risk user behavior that could indicate potential data exfiltration or insider threats. The feature analyzes activity patterns, such as sending sensitive files to personal email accounts, uploading documents to personal cloud storage, or performing mass downloads from OneDrive or SharePoint. By using machine learning and behavioral analytics, Insider Risk Management can identify deviations from normal user behavior and assign risk scores to users. Alerts are generated for compliance teams, who can then investigate the incidents, communicate with the users, or take preventive actions. This proactive monitoring helps mitigate insider threats before sensitive data is leaked or compromised.

Data Loss Prevention (DLP) enforces policies for sensitive content sharing by scanning documents, emails, and other data for regulated information such as credit card numbers, financial details, or personally identifiable information (PII). When a potential violation occurs, DLP can block the action, provide a policy tip, or trigger an alert to the compliance or security teams. This makes DLP highly effective at preventing accidental or intentional leakage of sensitive information at the moment it occurs. However, DLP is inherently rule-based and focuses on isolated events rather than longitudinal behavior. It reacts to specific policy violations—such as a single attempt to send a sensitive file externally—but it does not analyze whether a user has been slowly exfiltrating data over several days or whether their actions form part of a broader pattern of insider risk. DLP is event-driven, not behavior-driven, which limits its ability to detect more subtle or ongoing insider threats.

Conditional Access enforces access to Microsoft 365 applications using contextual signals such as device compliance, geographic location, risk level, and authentication strength. It protects organizations by preventing unauthorized access, blocking unmanaged devices, enforcing MFA, or restricting access during high-risk sign-ins. But Conditional Access is scoped entirely around authentication and access control. Once a user is authenticated, Conditional Access no longer monitors their activity. It does not detect whether a user is gradually downloading large volumes of files, copying data to personal devices, or repeating suspicious access patterns across multiple services. Conditional Access stops risky sign-ins—not risky behavior.

Sensitivity Labels classify and protect content by encrypting files, controlling permissions, and applying usage restrictions. These labels ensure that only authorized users can access sensitive data, and they remain enforced even after the content leaves the organization. However, Sensitivity Labels do not watch how users interact with data. They cannot flag suspicious downloading, repeated sharing attempts, or behavior that deviates from a user’s typical patterns. Sensitivity Labels secure the content itself, but they do not detect or analyze what users are doing with that content.

Insider Risk Management (IRM) is the correct solution because it provides behavior-based monitoring and analytics, identifying risky user actions that may indicate insider threats, data exfiltration, or policy violations over time. IRM evaluates patterns such as repeated file downloads, unusual data transfers, copying to USB devices, access outside typical work hours, or attempts to bypass security protocols. It aggregates signals across multiple activities, assigns risk scores, and alerts compliance teams when user behavior suggests elevated risk. Unlike DLP, which focuses on single incidents, IRM analyzes behavioral trends. Unlike Conditional Access, it examines what users do after logging in—not just how they log in. And unlike Sensitivity Labels, it detects potential misuse or malicious intent rather than simply applying content protection. IRM enables early intervention, allowing organizations to identify and mitigate insider threats before data is lost or damage occurs.

Question 73:

You want to detect and prevent users from sending emails containing sensitive credit card information outside the organization. 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 monitor and prevent the sharing of sensitive information, such as credit card numbers, in emails, documents, or Teams messages. DLP policies can identify specific types of sensitive data using predefined templates, such as PCI or PII, and enforce actions like blocking the email, notifying compliance teams, or prompting users with a Policy Tip. This ensures that sensitive information is not accidentally or maliciously shared outside the organization. DLP policies can be applied across Exchange Online, SharePoint, OneDrive, and Teams, providing comprehensive protection for emails and documents. Alerts and reporting help compliance teams track policy violations and take corrective action.

Sensitivity Labels classify and protect content by applying encryption, access restrictions, watermarks, and other policy-driven security settings. They are designed to ensure that only authorized users—inside or outside the organization—can access sensitive documents or emails. Labels can require authentication, restrict forwarding, prevent printing, or apply usage rights to ensure the confidentiality of protected information. However, despite their strong focus on protection, Sensitivity Labels do not proactively block emails that contain credit card data or other sensitive identifiers from being sent externally. Their main purpose is to protect content after it is created or shared, rather than to enforce dynamic, real-time policy-based restrictions on how sensitive content moves through the environment. Labels are therefore powerful encryption and classification tools, but they are not designed as enforcement mechanisms for preventing outbound data leakage.

Retention Labels complement this by ensuring that content is either preserved or deleted according to regulatory, legal, or organizational requirements. They help organizations comply with laws such as GDPR, SOX, or HIPAA by ensuring that emails and documents cannot be removed before the retention period ends. However, Retention Labels do not monitor when a user is attempting to send sensitive data outside the organization, nor do they evaluate the content of an email to determine whether it violates company policies. Their focus is lifecycle management—not real-time security, sharing control, or data-loss prevention.

Conditional Access adds another layer of protection by controlling access to Microsoft 365 applications. Policies can require device compliance, enforce MFA in high-risk scenarios, restrict access by geographic location, or block unmanaged endpoints from connecting. Conditional Access is essential for identity and device-based security, ensuring only trusted users and trusted devices can access corporate resources. But Conditional Access does not examine the content of emails or files. It cannot determine whether a user is attempting to send credit card data externally or trigger automatic blocking actions. It secures who can sign in—not what they do once they are signed in.

Data Loss Prevention (DLP) is the correct solution because it specializes in content-level inspection, detection, and enforcement. DLP policies can identify sensitive information such as credit card numbers, bank account information, personally identifiable information (PII), or other regulated content. When a user attempts to send an email containing credit card data to an external recipient, DLP can automatically block the email, send policy tips to the user, quarantine the message, or generate alerts for the compliance and security teams. Unlike Sensitivity Labels, DLP actively intercepts and restricts transmission rather than simply encrypting content. Unlike Retention Labels, DLP prevents inappropriate sharing rather than ensuring long-term preservation. And unlike Conditional Access, DLP operates at the content level, providing real-time inspection and enforcement rather than access control.

DLP’s ability to detect, monitor, alert, and prevent data leakage makes it the most appropriate and effective solution for protecting credit card information and enforcing regulatory compliance, ensuring sensitive data stays internal and secure.

Question 74:

You want to preserve emails and Teams messages for a legal investigation, ensuring users cannot delete them. 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 allows organizations to preserve content, including emails and Teams messages, that is relevant to legal investigations. When applied, Legal Hold prevents users from permanently deleting content while allowing it to remain accessible for normal operations. Legal Hold also maintains an auditable trail showing who accessed or modified content, supporting regulatory and compliance requirements. It can be targeted to specific users, groups, or locations, enabling precise preservation of relevant information without affecting unrelated data. Integration with Microsoft 365 workloads, including Exchange, SharePoint, OneDrive, and Teams, ensures comprehensive coverage for legal investigations.

Retention Labels enforce preservation or deletion schedules based on organizational or regulatory requirements. While they can preserve content, they are not designed for case-specific legal investigations and cannot selectively preserve content while allowing normal use. Retention Labels are general compliance tools rather than investigation-specific solutions.

Data Loss Prevention prevents inappropriate sharing of sensitive content, but does not preserve content for legal investigation purposes. DLP focuses on preventing leaks rather than maintaining an immutable record for legal review.

Communication Compliance is designed to monitor internal user communications for policy violations such as harassment, discrimination, threats, insider trading, abusive language, data leakage attempts, or other behaviors that may violate organizational policies or regulatory standards. It scans messages across Microsoft Teams, Exchange Online, Yammer, and other communication channels to identify potentially risky or inappropriate content. When violations are detected, Communication Compliance can alert compliance reviewers, trigger remediation workflows, and provide detailed insights to HR, legal, or security teams. While the tool is powerful for real-time monitoring and behavior analysis, it remains fundamentally a monitoring and detection solution, not a data preservation mechanism. It does not prevent users from deleting their own messages, nor does it guarantee that content is retained for legal obligations or litigation needs. Communication Compliance focuses on identifying problematic behavior but does not ensure the long-term preservation of the underlying messages.

This is where eDiscovery Legal Hold provides the correct solution. Legal Hold ensures that relevant emails, Teams messages, and other Microsoft 365 content cannot be deleted—either accidentally or intentionally—by end users once a legal case or investigation is initiated. When a Legal Hold is applied to a mailbox or Teams content, the system silently preserves all messages, including deleted items, edits, and version changes, in the Recoverable Items folder. This ensures that all potentially relevant content remains available for discovery, review, and export during litigation, audits, or compliance investigations.

Legal Hold goes beyond simple retention by providing case-specific preservation, meaning organizations can create holds tailored to particular legal matters, custodians, or timeframes. This avoids the need to retain all content indefinitely and allows compliance teams to scope holds to only what is necessary. Audit logs also track Legal Hold actions, providing defensible documentation that organizations took required steps to preserve evidence. These capabilities are essential in meeting legal obligations and ensuring data integrity.

Unlike Retention Labels, which apply broad retention rules for compliance or governance purposes, Legal Hold is used for specific legal cases or investigations, offering targeted and defensible preservation. Retention Labels ensure lifecycle management but do not provide the granular, case-bound control required during litigation.

Unlike Data Loss Prevention (DLP), which focuses on preventing data leaks and monitoring sensitive information, Legal Hold does not analyze content for sensitivity or sharing risks. Instead, it focuses exclusively on ensuring that content cannot be removed while legal obligations are in effect.

Compared to Communication Compliance, which monitors communications for policy violations, Legal Hold ensures preservation rather than detection. Communication Compliance alerts reviewers to inappropriate behavior, but it does not freeze content or prevent users from modifying or deleting it. Legal Hold, however, guarantees that even deleted or edited messages remain intact and discoverable for legal teams.

Ultimately, eDiscovery Legal Hold is the correct solution when the goal is to preserve content and prevent deletion to support investigations and ensure legal defensibility, making it a fundamental tool in Microsoft 365’s compliance and litigation management framework.

Question 75:

You want to ensure that emails are retained for 7 years and cannot be deleted by users to comply with regulatory requirements. Which feature should you configure?

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

Answer: A

Explanation:

 Retention Labels in Microsoft 365 allow organizations to enforce content retention policies to meet regulatory and legal obligations. By applying a retention label to emails, administrators can prevent users from permanently deleting messages for a specified period, such as 7 years. Labels can be applied manually or automatically based on content type, keywords, or location. Retention Labels also support disposition review processes, audit logging, and reporting, ensuring organizations can demonstrate compliance with regulatory requirements. The policies maintain a defensible and auditable framework for managing the lifecycle of emails and other content.

Sensitivity Labels classify and protect content using encryption and access restrictions. While they secure emails from unauthorized access or sharing, they do not enforce retention periods or prevent deletion by users. Sensitivity Labels focus on content protection rather than lifecycle management.

Data Loss Prevention prevents sensitive information from being shared or leaked outside the organization. DLP does not preserve emails for a fixed period or prevent deletion, and its focus is on content protection rather than retention.

Conditional Access controls access to Microsoft 365 applications based on user identity, device compliance, sign-in risk, location, and other contextual factors. Its core purpose is to ensure that only trusted users and trusted devices can access corporate applications and data. For example, an organization can require MFA for external sign-ins, block access from unmanaged devices, or enforce device-compliance checks before granting access to Exchange Online or SharePoint. While Conditional Access plays a critical role in strengthening authentication and reducing the likelihood of unauthorized access, its functionality ends once access is granted. It does not oversee how long content is stored, whether users can delete emails, or how organizations can meet legal and regulatory data-retention requirements. In other words, Conditional Access governs who can access apps, under what conditions, but it does not govern what happens to the content after access is granted.

This is where Retention Labels come into play as the correct solution. Retention Labels are specifically designed to enforce how long content must be kept and what actions users can or cannot take regarding deletion or modification. When applied to emails, documents, Teams messages, or other Microsoft 365 items, Retention Labels can prevent users from deleting content before the required retention period expires. This ensures that organizations maintain necessary records for regulatory compliance, legal discovery, auditing, and internal governance requirements. Retention Labels can also automatically delete content after the retention period ends when appropriate, supporting data minimization principles and reducing unnecessary storage.

Beyond simply preserving content, Retention Labels offer audit capabilities that allow compliance administrators to track label application, changes, and disposition review activities. These insights are critical for demonstrating compliance to regulators or during legal proceedings. The ability to publish labels, auto-apply them using content detection rules, and manage disposition workflows makes Retention Labels a cornerstone of any well-structured compliance strategy.

Unlike Sensitivity Labels, which classify and protect content through encryption or access control, Retention Labels are solely concerned with when content should be retained or disposed of, not with applying protection settings. Sensitivity Labels help prevent unauthorized access or data exposure, but they do not stop a user from deleting an email or document prematurely.

Similarly, unlike Data Loss Prevention (DLP), which monitors content for sensitive information and prevents risky sharing or data leakage, Retention Labels ensure that content is stored for the proper duration, regardless of its sensitivity. DLP focuses on preventing content from being exposed; Retention Labels focus on ensuring content remains available for compliance and legal needs.

Finally, unlike Conditional Access, which controls entry into Microsoft 365 applications, Retention Labels operate after content is created or stored, ensuring that lifecycle management rules are consistently enforced. Conditional Access protects access; Retention Labels protect the content’s required lifespan. Together, they offer complementary but distinctly separate layers of compliance and security control.