Microsoft SC-401Administering Information Security in Microsoft 365 Exam Dumps and Practice Test Questions Set 6 Q76-90
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Question 76:
You want to ensure that users are warned before sending emails containing sensitive data to external recipients, but still allow them to override the warning if necessary. Which Microsoft 365 feature should you implement?
A) Data Loss Prevention with Policy Tips
B) Sensitivity Labels
C) Retention Labels
D) Conditional Access
Answer: A
Explanation:
Data Loss Prevention (DLP) with Policy Tips in Microsoft 365 provides proactive monitoring and guidance to users when they attempt to share sensitive content, such as credit card numbers, social security numbers, or confidential financial data, with external recipients. Policy Tips appear in real time within Outlook or Teams, warning users that the content they are attempting to send violates organizational policies. Administrators can configure the policy to allow users to override the warning after providing a business justification. This approach balances security and business productivity, as it educates users, mitigates risks of accidental data leaks, and ensures compliance without overly restricting normal communication. DLP integrates with Exchange Online, SharePoint, OneDrive, and Teams to provide comprehensive coverage across all collaboration and communication platforms, maintaining a consistent security posture.
Sensitivity Labels classify and protect content using encryption and access restrictions. While they prevent unauthorized access and copying, they do not provide real-time user warnings or allow user override workflows. Labels focus on content protection rather than behavior guidance.
Retention Labels enforce preservation and deletion schedules to meet organizational, legal, and regulatory requirements. They determine how long content such as emails, SharePoint documents, and Teams chats must be stored and when it should be disposed of. These labels ensure organizations comply with laws, support audits, and maintain structured information governance. However, Retention Labels act after content is created, applying rules for long-term storage or disposal. They do not perform real-time inspection, do not analyze content as it is being shared, and do not warn users if they attempt to send sensitive information outside the organization. Retention is strictly a lifecycle management tool, not a proactive security or user awareness mechanism.
Conditional Access helps secure organizational resources by ensuring that access to applications is granted only when predefined conditions—such as device compliance, location, or risk level—are met. It is a crucial part of identity and access management, protecting corporate systems from unauthorized users or compromised devices. However, Conditional Access is entirely focused on authentication and access control, not the content being shared within those applications. It cannot detect whether an email contains sensitive information, nor can it alert the user about the potential risk of sending confidential data externally. Conditional Access evaluates who is accessing a resource and how, not what data is being sent or handled once access is granted.
DLP with Policy Tips is the correct solution because it specializes in real-time content inspection and user guidance. When a user composes an email containing credit card numbers, financial identifiers, or other sensitive data, DLP policies immediately detect these patterns and trigger a Policy Tip notification. These Policy Tips appear directly within Outlook or other Microsoft 365 applications, guiding the user before the message is sent. This proactive approach not only prevents accidental data exposure but also educates users on organizational policies as they work. It reinforces security awareness at the exact moment risky behavior occurs.
DLP with Policy Tips also allows justified overrides, enabling users to proceed with sending the content only when a legitimate business need exists. This balance between security and productivity ensures that essential work is not unnecessarily blocked while still enforcing compliance. In addition, all actions—including overrides, attempted violations, and blocked transmissions—are logged for compliance teams, providing valuable audit trails and insight into organizational data-handling behavior.
Unlike Sensitivity Labels, which focus on protecting data through encryption or access restrictions, DLP with Policy Tips emphasizes user awareness and active prevention. Unlike Retention Labels, it safeguards content at the point of use, not at the end of its lifecycle. And unlike Conditional Access, which governs application access, DLP monitors and controls content itself, ensuring sensitive data is not inadvertently shared.
Question 77:
You want to prevent employees from printing documents labeled “Highly Confidential” while allowing them to access the content internally. Which Microsoft 365 feature should you configure?
A) Sensitivity Labels
B) Data Loss Prevention
C) Retention Labels
D) Conditional Access
Answer: A
Explanation:
Sensitivity Labels in Microsoft 365 allow administrators to classify and protect documents and emails based on sensitivity. For “Highly Confidential” content, labels can enforce restrictions such as preventing printing, copying, or sharing externally while still allowing authorized users to access and collaborate internally. Protection policies can include encryption, usage rights, and persistent controls that remain with the document even when it is shared across internal systems. Labels can be applied manually by users or automatically based on sensitive content detection. Integration with SharePoint, OneDrive, Teams, and Exchange ensures that the protection is persistent and consistent, preventing the accidental or intentional misuse of sensitive information.
Data Loss Prevention (DLP) monitors content for sensitive information and prevents inappropriate sharing or email transmission. It is designed to detect data such as credit card numbers, financial records, health information, or other regulated content and stop it from leaving the organization in ways that violate policy. While DLP can block external sharing, generate alerts, or display policy tips to educate users, its control ends once the user is legitimately accessing the file internally. DLP cannot enforce restrictions on printing, copying, downloading, or saving the file to another location. These usage actions are outside its scope because DLP operates as a monitoring and rule-based enforcement system rather than a persistent protection framework. Additionally, DLP is reactive, responding only when a policy rule is triggered rather than continuously controlling how the content is used. This makes it insufficient for organizations needing strict document-level protection.
Retention Labels enforce content retention or deletion schedules. They ensure that documents and emails remain available for a required period and cannot be deleted prematurely by users. While critical for regulatory, legal, and audit compliance, Retention Labels do not influence user interactions with the content. They do not block printing, copying, forwarding, or editing of documents. Their purpose is to preserve content—not to secure or protect it from misuse. Because they focus solely on lifecycle management, they cannot serve as a control mechanism for restricting sensitive document actions.
Conditional Access enforces access policies based on device compliance, location, and risk signals. It ensures that only approved users and trusted devices can enter the Microsoft 365 environment. However, once access is granted, Conditional Access does not continue to enforce document-level restrictions. It cannot disable printing, block copying, or stop a user from saving a document elsewhere. It operates entirely at the access layer, not the content layer.
Sensitivity Labels are the correct solution because they enforce persistent protection, control document usage, including printing restrictions, and allow internal collaboration. They embed encryption and usage rights directly into the file. Unlike DLP, they actively restrict what users can do; unlike Retention Labels, they provide real-time protections rather than lifecycle governance; and unlike Conditional Access, they secure the content itself rather than the login process. Sensitivity Labels also maintain protection even when files leave Microsoft 365, ensuring that access and usage restrictions travel with the document. This makes them ideal for scenarios requiring strict control over how sensitive data is consumed—whether viewed online, downloaded, or shared across departments. Additionally, administrators can tailor permissions to specific groups, allowing fine-grained rules such as view-only access, disabling copy/paste, blocking screenshots via Defender for Endpoint, or requiring user justification for label downgrades.
Question 78:
You want to block access to Microsoft 365 apps from devices that do not comply with security policies, including outdated operating systems or missing patches. 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 allows organizations to enforce access policies based on device compliance, user location, application type, and risk signals. By integrating with Microsoft Intune or other endpoint management tools, Conditional Access evaluates device health, including operating system version, patch status, encryption, and antivirus compliance. Devices that do not meet security requirements can be blocked from accessing Microsoft 365 applications like Exchange, SharePoint, Teams, or OneDrive. Conditional Access can also require multi-factor authentication (MFA) or restrict sessions for compliant devices, providing granular control over access. This helps organizations enforce zero-trust principles and ensure that only secure devices can access sensitive corporate resources.
Data Loss Prevention (DLP) focuses on monitoring and preventing the sharing of sensitive content. It does not evaluate device compliance or block access to applications based on security policies.
Sensitivity Labels classify and protect content by applying encryption and usage restrictions. While labels protect documents and emails, they do not enforce device compliance or control access to applications.
Retention Policies enforce content retention or deletion to meet regulatory compliance requirements. They do not control access based on device compliance or health status.
Conditional Access enforces access policies based on device compliance, location, and risk signals. Its primary strength lies in determining whether a user or device should be granted access to a Microsoft 365 application or resource. While this is essential for identity and access security, Conditional Access does not provide fine-grained control over specific actions performed after access is granted. Once a user is authenticated, Conditional Access cannot prevent them from printing, copying, saving locally, or taking other actions on a document. It focuses on access decisions, not post-access usage controls. This gap makes it insufficient in scenarios where organizations must restrict how content is handled, even by internal, authorized users.
Data Loss Prevention (DLP) provides monitoring and enforcement for sensitive content, but its controls primarily apply during sharing, transferring, or attempting to send data outside approved boundaries. DLP detects sensitive information types and can block, restrict, or warn users during data movement. However, it does not provide persistent protection embedded inside the file itself. For example, if a user downloads a document containing sensitive information internally, DLP cannot consistently control whether that user can print or copy the content once it is already on their device. DLP focuses on data movements and policy enforcement during transmission—not ongoing control over content usage.
Retention Labels govern how long content must be kept for legal, regulatory, or business purposes. They help ensure documents are preserved or deleted according to compliance rules. However, Retention Labels do not restrict how documents are used, printed, or shared. Their purpose is strictly lifecycle management, not security or usage enforcement. They cannot ensure confidentiality or prevent unauthorized dissemination of sensitive information, even within the organization.
Sensitivity Labels are the correct solution because they apply persistent, file-level protection that stays with the document regardless of where it is stored or shared. With Sensitivity Labels, administrators can enforce usage rights such as preventing printing, blocking copying, disabling forwarding, or requiring encryption. These protections are enforced through Microsoft Purview Information Protection and remain intact even if the file leaves the organization’s network. Sensitivity Labels also support authenticated internal collaboration, allowing authorized users to access, edit, and work on documents while ensuring the organization maintains full control over how the content is used. Unlike Conditional Access, Sensitivity Labels secure the data itself rather than just the entry point. Unlike DLP, they provide proactive restrictions rather than only monitoring. And unlike Retention Labels, they actively enforce security rather than manage lifecycle policies.
Question 79:
You want to ensure that emails containing sensitive intellectual property cannot be sent outside your organization without a business justification. Which feature should you implement?
A) Data Loss Prevention with Policy Tips
B) Sensitivity Labels
C) Retention Labels
D) Conditional Access
Answer: A
Explanation:
Data Loss Prevention (DLP) with Policy Tips allows organizations to monitor and prevent the sharing of sensitive information, such as intellectual property, in emails, documents, or Teams messages. DLP policies can detect predefined sensitive information types, including trade secrets or proprietary designs, and enforce actions such as warning the user with a Policy Tip, blocking the email, or requiring a business justification before allowing the email to be sent externally. Policy Tips educate users about potential risks, provide a mechanism for controlled exceptions, and log the action for compliance review. This ensures sensitive intellectual property remains protected while still supporting necessary business communication.
Sensitivity Labels classify and protect content using encryption and access restrictions. While they can prevent unauthorized access or sharing, they do not provide real-time warnings or require user justification before sending content externally. Labels focus on protecting content rather than enforcing behavioral compliance.
Retention Labels enforce content preservation or deletion schedules. They do not prevent external sharing or require justification for sending sensitive emails. Retention Labels manage content lifecycle rather than controlling sharing behavior.
Conditional Access enforces access based on user, device, or location, but it does not inspect the content of emails or require justification for sending sensitive information.
DLP with Policy Tips is the correct solution because it enforces content-based policies, provides real-time user guidance, logs exceptions, and prevents sensitive intellectual property from being sent without approval. Unlike Sensitivity Labels, it emphasizes behavioral compliance; unlike Retention Labels, it focuses on active protection rather than lifecycle management; and unlike Conditional Access, it governs content sharing rather than access.
Question 80:
You want to preserve Teams messages and emails for a regulatory investigation and prevent users from deleting 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 relevant to regulatory or legal investigations. Once a Legal Hold is applied, Teams messages, emails, SharePoint documents, and OneDrive files cannot be deleted by users, ensuring the integrity of the evidence. Legal Hold also maintains a detailed audit trail showing who accessed or modified content, supporting compliance and regulatory reporting. Legal Hold can be targeted to specific users, groups, or content locations, providing precise preservation of relevant content without impacting unrelated data. Integration across Microsoft 365 workloads ensures comprehensive coverage, allowing compliance or legal teams to efficiently search, review, and export content for investigations.
Retention Labels enforce content retention for compliance purposes but are not designed for case-specific investigations. They retain content based on general regulatory requirements and cannot selectively preserve content for a legal case while preventing deletion by users.
Data Loss Prevention prevents the inappropriate sharing of sensitive content. While important for data security, DLP does not preserve content or prevent deletion in the context of legal investigations.
Communication Compliance monitors messages for policy violations such as harassment or regulatory non-compliance. While it provides visibility and alerts, it does not prevent deletion or preserve messages for investigation purposes.
eDiscovery Legal Hold is the correct solution because it preserves emails and Teams messages, prevents user deletion, maintains audit trails, and supports regulatory investigations. Unlike Retention Labels, it is case-specific; unlike DLP, it focuses on preservation rather than prevention; and unlike Communication Compliance, it actively preserves content rather than just monitoring behavior.
Question 81:
You want to prevent users from sending sensitive financial documents to personal email accounts while still allowing internal sharing. 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 sensitive information from leaving the organization. By configuring a DLP policy for financial documents, administrators can block emails sent to personal email accounts, alert compliance teams, or prompt users with a Policy Tip. DLP analyzes email content and attachments for sensitive information types such as financial data, personally identifiable information (PII), or intellectual property. The policy can differentiate between internal and external recipients, allowing internal collaboration while restricting unauthorized sharing outside the organization. This ensures that critical financial information remains secure while supporting day-to-day operations.
Sensitivity Labels classify and protect content using encryption and access restrictions. While they secure documents and emails from unauthorized access, they do not proactively block sending documents to personal email accounts or provide real-time alerts to users or administrators. Labels focus on protection rather than prevention of external sharing.
Retention Labels enforce preservation or deletion schedules for content. They ensure compliance with retention requirements but do not prevent users from sharing sensitive documents. Retention Labels focus on content lifecycle rather than active data protection or monitoring.
Conditional Access controls access to applications based on device compliance, user location, or risk. While it prevents unauthorized access to Microsoft 365 applications, it does not inspect content or prevent the sharing of sensitive financial documents with personal accounts.
DLP is the correct solution because it proactively monitors content, blocks unauthorized sharing, alerts administrators, and provides guidance to users. Unlike Sensitivity Labels, it enforces sharing restrictions in real time; unlike Retention Labels, it focuses on content protection rather than lifecycle; and unlike Conditional Access, it governs sharing rather than access.
Question 82:
You want to require just-in-time access for privileged administrators and log all their actions for auditing. Which Microsoft 365 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 provides just-in-time (JIT) access for high-risk roles, meaning administrators do not have permanent elevated privileges. To perform critical tasks, administrators must request temporary access and provide a business justification. PAM workflows can include approval processes and require multi-factor authentication. All actions performed during privileged sessions are logged, creating a detailed audit trail that supports regulatory compliance and internal review. This approach reduces the attack surface by limiting standing access, prevents misuse of privileged accounts, and ensures all high-risk actions are traceable. PAM integrates seamlessly with Azure AD roles and Microsoft 365 workloads, ensuring comprehensive protection and oversight.
Conditional Access enforces access policies based on device compliance, location, or risk level. While it can block or restrict access, it does not provide just-in-time role activation, require business justification, or log detailed privileged actions.
Identity Protection detects compromised accounts and risky sign-ins. While it can enforce password changes or block access, it does not manage privileged role activation, require justification, or provide auditing for high-risk administrative actions.
Data Loss Prevention monitors and prevents the sharing of sensitive content. While important for data protection, DLP does not manage privileged roles, access workflows, or auditing of administrator actions.
Privileged Access Management is the correct solution because it enforces temporary access, requires justification, logs all activities, and reduces security risks associated with standing privileges. Unlike Conditional Access, it focuses on privileged workflows; unlike Identity Protection, it governs access to high-risk roles; and unlike DLP, it controls administrative actions rather than protecting data.
Question 83:
You need to detect risky sign-ins, assign risk scores, and automatically require password resets for compromised accounts. Which feature should you implement?
A) Identity Protection
B) Conditional Access
C) Data Loss Prevention
D) Sensitivity Labels
Answer: A
Explanation:
Identity Protection in Microsoft 365 analyzes user and sign-in risk using signals such as leaked credentials, impossible travel, atypical locations, and unusual activity patterns. When risky behavior is detected, Identity Protection assigns risk scores to users and sign-ins, helping administrators prioritize remediation actions. It can automatically require password resets, enforce multi-factor authentication, or block access for compromised accounts. This proactive approach prevents unauthorized access and reduces the risk of data breaches. Integration with Azure AD and Microsoft 365 workloads provides comprehensive visibility and remediation for identity-related risks.
Conditional Access enforces access based on device, location, or risk level but does not assign risk scores or automatically trigger password resets for compromised accounts. It reacts to conditions rather than analyzing overall account risk.
Data Loss Prevention protects sensitive content from being shared inappropriately. DLP does not monitor sign-ins, detect compromised accounts, or enforce authentication-related remediation. Its focus is on content security rather than identity protection.
Sensitivity Labels classify and protect content by applying encryption and access restrictions. Labels do not monitor user accounts or detect risky sign-ins. They secure content rather than manage identity risk.
Identity Protection is the correct solution because it detects compromised accounts, evaluates risk, and enforces automated remediation such as password resets. Unlike Conditional Access, it proactively assesses risk; unlike DLP, it focuses on accounts rather than content; and unlike Sensitivity Labels, it addresses identity security rather than content protection.
Question 84:
You want to enforce that emails containing sensitive personal information cannot be forwarded outside the organization and remain encrypted. Which Microsoft 365 feature should you configure?
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 emails and documents containing sensitive personal information. By applying a label such as “Confidential – Personal Data,” administrators can enforce encryption, prevent forwarding, copying, or printing, and restrict access to authorized internal users. These protections are persistent, meaning they remain with the content even if it is shared outside the organization. Integration with Exchange Online ensures that emails are protected regardless of the recipient or device used to access them. Sensitivity Labels also allow automatic application based on content detection rules, ensuring consistent protection across the organization.
Data Loss Prevention can block or alert on the sending of sensitive information, but it does not provide persistent encryption or control actions such as preventing forwarding after delivery. DLP is primarily focused on detecting and preventing leaks rather than enforcing content usage restrictions.
Retention Labels enforce content preservation or deletion schedules. They do not encrypt or restrict actions on emails containing sensitive personal information. Retention focuses on lifecycle management rather than active protection.
Conditional Access controls access to Microsoft 365 applications based on user, device, or location. While it secures access, it does not apply persistent encryption or prevent forwarding or copying of emails.
Sensitivity Labels are the correct solution because they classify content, enforce encryption, restrict actions like forwarding, and provide persistent protection. Unlike DLP, they enforce usage controls rather than just monitoring; unlike Retention Labels, they protect content actively rather than just preserving it; and unlike Conditional Access, they secure the content rather than access.
Question 85:
You want to monitor internal communications in Teams to detect harassment, offensive language, or policy violations. 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 enables organizations to monitor internal communications such as Teams chats, emails, or Yammer posts for policy violations. Machine learning and pattern matching are used to detect harassment, offensive language, discriminatory remarks, or regulatory compliance risks. When incidents are detected, alerts are generated for review by compliance officers, allowing them to investigate, remediate, or escalate issues. Communication Compliance ensures that internal communication remains professional and adheres to organizational policies. It can also integrate with eDiscovery for investigation purposes.
Data Loss Prevention focuses on preventing the sharing of sensitive information outside the organization. While DLP monitors content for data leaks, it does not detect harassment, offensive language, or behavioral policy violations. Its primary purpose is content protection rather than behavioral compliance.
Sensitivity Labels classify and protect content by applying encryption and access restrictions. While they secure documents and emails, they do not monitor internal communications or flag inappropriate language or behavior. Labels focus on content protection rather than policy enforcement on communications.
Retention Labels enforce content preservation or deletion schedules to meet regulatory requirements. They do not monitor communications or detect policy violations. Retention Labels are lifecycle management tools rather than monitoring solutions.
Communication Compliance is the correct solution because it proactively monitors internal communications, detects policy violations, generates alerts, and enables compliance teams to investigate and remediate issues. Unlike DLP, it focuses on behavioral compliance rather than data leaks; unlike Sensitivity Labels, it monitors communications rather than protecting content; and unlike Retention Labels, it acts in real time rather than managing lifecycle.
Question 86:
You want to apply automatic encryption and classification to documents containing Social Security numbers stored in 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 allow organizations to classify and protect content based on its sensitivity. By configuring labels for documents containing Social Security numbers (SSNs), administrators can automatically apply encryption, restrict access, and prevent unauthorized sharing. The labels can be applied automatically by detecting sensitive information types, such as SSNs, through built-in or custom rules. This ensures that protected documents remain secure even if they are downloaded, copied, or shared internally or externally. Integration with SharePoint, OneDrive, Teams, and Exchange ensures that protection policies persist across all locations where the content is stored or shared. Labels also allow setting permissions, usage restrictions, and monitoring access, ensuring compliance with privacy regulations and organizational policies.
Retention Labels enforce preservation or deletion schedules for compliance purposes but do not provide encryption or restrict access based on content sensitivity. Retention focuses on lifecycle management rather than content protection.
Data Loss Prevention can detect sensitive information like SSNs and prevent unauthorized sharing, but it does not automatically encrypt or classify documents. DLP is reactive and primarily enforces policies based on actions rather than persistent content protection.
Conditional Access manages access to Microsoft 365 applications based on user, device, or location, but does not protect the content itself or enforce classification and encryption policies.
Sensitivity Labels are the correct solution because they automatically classify, encrypt, restrict access, and provide persistent protection for sensitive content. Unlike Retention Labels, they actively protect content; unlike DLP, they enforce persistent protection rather than reactive blocking; and unlike Conditional Access, they secure content rather than access.
Question 87:
You need to enforce a policy that prevents users from copying or printing documents labeled as “Confidential” while still allowing internal collaboration. Which feature should you configure?
A) Sensitivity Labels
B) Data Loss Prevention
C) Retention Labels
D) Conditional Access
Answer: A
Explanation:
Sensitivity Labels in Microsoft 365 allow organizations to apply classification and protection policies to documents and emails. By labeling documents as “Confidential,” administrators can enforce restrictions such as preventing printing, copying, and sharing externally while still allowing internal collaboration among authorized users. These protections are persistent, meaning they travel with the document wherever it goes, ensuring that sensitive content remains secure even when shared internally or moved between systems. Integration with SharePoint, OneDrive, Teams, and Outlook allows seamless enforcement of these protections across Microsoft 365 workloads. Labels can be applied manually or automatically based on content detection, keywords, or sensitive information types, ensuring consistency in classification and protection.
Data Loss Prevention can prevent sensitive content from being shared externally, but it does not control internal actions like printing or copying. DLP policies are effective at detecting sensitive information and stopping it from being transmitted outside the organization through email, Teams, or other communication channels. However, DLP cannot enforce restrictions once the user has legitimate access to a document. If a user opens a file internally, DLP does not stop them from printing it, copying information, taking screenshots, or saving it in an unprotected location. This means DLP is reactive—it triggers only when a rule is violated—and does not provide persistent, built-in protection within the file itself. As a result, it cannot safeguard documents once they leave the monitored environment or once the user begins interacting with the content. DLP is a powerful data leakage prevention mechanism, but it cannot enforce continuous, file-level controls.
Retention Labels enforce retention or deletion schedules for compliance purposes. Their purpose is regulatory adherence—ensuring content is preserved for a mandated period or disposed of when no longer needed. While essential for compliance governance, Retention Labels do not influence how a user interacts with a file. They cannot prevent copying, printing, forwarding, or editing because they operate at the lifecycle level rather than the usage level. Retention Labels protect organizations from accidental deletion or premature disposal, but they do not address insider misuse, sensitive data exposure, or misuse of content through internal actions. Therefore, they are not an appropriate control for restricting document actions.
Conditional Access enforces access to applications based on device compliance, location, or user risk. It secures the authentication and access layer, ensuring that only authorized users and trusted devices can access Microsoft 365 resources. However, Conditional Access stops once access is granted—it does not extend protections inside individual files. It cannot restrict printing, copying, or modifying content. Conditional Access ensures a secure login experience but provides no content-level safeguards or persistent protections embedded within the document.
Sensitivity Labels are the correct solution because they enforce persistent protections, prevent unauthorized actions like printing or copying, and allow controlled internal collaboration. These labels apply encryption, watermarking, access control, and usage restrictions that travel with the document regardless of location. Unlike DLP, they embed restrictions inside the content itself, ensuring protection persists even if the file is downloaded or shared internally. Unlike Retention Labels, they control user actions rather than lifecycle requirements. And unlike Conditional Access, they secure the content rather than the initial access point. Sensitivity Labels provide comprehensive, persistent, and action-based protection essential for restricting printing, copying, or other sensitive activities while still supporting secure collaboration across the organization.
Question 88:
You want to monitor user activity for potential data exfiltration from OneDrive and SharePoint, including attempts to upload sensitive files to personal accounts. 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 in Microsoft 365 helps organizations detect and respond to risky behavior by users. It monitors actions such as uploading sensitive files to personal cloud accounts, sending data externally, or downloading unusually large amounts of content. Machine learning and behavioral analytics help differentiate between normal user activity and potential insider threats. Alerts are generated for compliance teams, who can investigate the incident, communicate with the user, or take preventive action. Insider Risk Management provides visibility into patterns of data exfiltration across OneDrive, SharePoint, Teams, and Exchange, allowing proactive mitigation before data leaks occur. It is designed to detect subtle and cumulative behaviors that might indicate risk, rather than just blocking individual actions.
Data Loss Prevention can enforce policies to prevent the sharing of sensitive information, but it primarily reacts to specific rule violations and does not analyze patterns of behavior across multiple activities. DLP is content-focused rather than behavior-focused.
Sensitivity Labels classify and protect content by applying encryption or access restrictions. While they prevent unauthorized access, they do not monitor user activity or detect risky behavior such as data exfiltration attempts.
Retention Labels enforce preservation or deletion schedules for compliance purposes. They do not monitor user behavior or prevent data exfiltration. Retention focuses on content lifecycle management rather than security monitoring.
Insider Risk Management is the correct solution because it proactively monitors user behavior, identifies risky patterns, generates alerts, and allows intervention before sensitive data is exfiltrated. Unlike DLP, it analyzes behavior rather than single events; unlike Sensitivity Labels, it monitors actions rather than securing content; and unlike Retention Labels, it acts proactively rather than simply preserving content.
Question 89:
You need to preserve emails and Teams messages for an ongoing investigation and prevent users from deleting them. Which Microsoft 365 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 ensures that emails, Teams messages, SharePoint documents, and OneDrive files are preserved for regulatory or legal investigations. When a Legal Hold is applied, users cannot delete content, ensuring the integrity of evidence. Legal Hold also maintains a detailed audit trail, recording who accessed or modified the content, supporting compliance and legal requirements. It allows precise targeting of specific users, groups, or locations, ensuring relevant content is preserved without affecting unrelated data. Integration with Microsoft 365 workloads ensures comprehensive coverage for emails, Teams messages, and documents. Legal Hold is critical for organizations facing investigations or litigation, providing defensible preservation and easy retrieval for compliance teams.
Retention Labels enforce general retention or deletion policies but are not designed for case-specific legal preservation. They do not prevent deletion for investigation purposes and cannot target specific cases.
Data Loss Prevention prevents sharing or sending sensitive content, but does not preserve content or prevent deletion. DLP focuses on data leakage prevention rather than evidence preservation.
Communication Compliance monitors internal communications for harassment, policy violations, or offensive language. While useful for compliance monitoring, it does not preserve content or prevent deletion for investigation purposes.
eDiscovery Legal Hold is the correct solution because it preserves content, prevents deletion, maintains audit trails, and supports legal and regulatory investigations. Unlike Retention Labels, it is case-specific; unlike DLP, it focuses on preservation rather than prevention; and unlike Communication Compliance, it preserves content rather than monitoring behavior.
Question 90:
You want to enforce that all emails are retained for 10 years and cannot be deleted by users to comply with financial regulations. 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 allow organizations to enforce content retention policies to meet regulatory requirements. By configuring a label for emails, administrators can ensure that messages are retained for 10 years and cannot be deleted by users. Retention Labels can be applied manually or automatically based on content, keywords, or location. They also support disposition review and audit logging, enabling compliance teams to track retention and demonstrate adherence to regulations. Retention Labels are essential for industries such as finance, healthcare, and legal, where long-term preservation of records is mandatory for audits or legal purposes.
Sensitivity Labels protect content using encryption and access restrictions. While they secure emails, they do not enforce retention periods or prevent deletion. Sensitivity Labels focus on content protection rather than lifecycle management.
Data Loss Prevention monitors and prevents sensitive information from being shared outside the organization. DLP policies focus on detecting sensitive data types—such as financial records, personal identifiers, or regulated industry information—and stopping users from sending or exposing this data through email, Teams, or other communication channels. However, DLP does not store, archive, or preserve content. It is not designed to enforce how long information must be kept, nor can it prevent users from deleting emails or documents. Its mission is solely to reduce the risk of accidental or intentional data leakage in real time. Because it does not align with regulatory requirements related to long-term content preservation, DLP cannot ensure compliance with industry-specific laws, including those that mandate multi-year retention of financial communications.
Conditional Access enforces access to Microsoft 365 applications based on device compliance, authentication strength, user identity, location, or risk-level signals provided by tools like Microsoft Entra ID Protection. While extremely effective for securing access and preventing unauthorized logins, Conditional Access does not manage content within Exchange Online or SharePoint. It cannot prevent a user from deleting emails or documents once they are inside the system, nor can it ensure that important financial communications are stored for mandated periods. Conditional Access operates at the session and authentication layer, not the content lifecycle layer. This makes it unsuitable for meeting retention or recordkeeping regulations that require strict rules governing how long items must be kept available.
Retention Labels are the correct solution because they enforce retention periods, prevent deletion, provide auditing, and ensure compliance with financial regulations. They allow organizations to define granular retention schedules—such as retaining emails for seven years—and ensure that content cannot be permanently deleted before the mandated period expires. Retention Labels also support a regulatory “hold” mode, ensuring that even if users attempt to delete items, those items remain preserved in the compliance archive. Additionally, audit logs provide transparency and accountability, essential for financial, legal, and regulatory audits. Unlike Sensitivity Labels, Retention Labels focus on lifecycle management rather than data protection. They do not encrypt documents or apply usage restrictions; instead, they ensure that required information remains accessible and intact. Unlike DLP, Retention Labels preserve content rather than monitor its sharing. And unlike Conditional Access, they address compliance and regulatory obligations rather than access control. Retention Labels, therefore, provide the comprehensive retention governance needed for financial industry requirements.