Visit here for our full Microsoft SC-300 exam dumps and practice test questions.
Question 21
Which Azure AD feature enables just-in-time elevated access to administrative roles with time-bound assignments and approvals?
A) Conditional Access
B) Identity Protection
C) Privileged Identity Management
D) Access Reviews
Answer: C
Explanation:
A Conditional Access enforces access policies such as requiring Multi-Factor Authentication (MFA) based on location, device compliance, and user risk signals. While it strengthens security and helps enforce Zero Trust principles, it does not provide the ability to grant temporary elevated access for administrative roles. Conditional Access is primarily focused on access control rather than role lifecycle management.
B Identity Protection is designed to detect risky sign-ins, compromised accounts, and potential threats using adaptive machine learning. It identifies unusual sign-in patterns and can trigger alerts or conditional responses. However, it does not manage elevated access to privileged roles or automate temporary permissions.
C Privileged Identity Management (PIM) is the correct answer because it enables organizations to enforce the principle of least privilege while allowing just-in-time access to sensitive administrative roles. Administrators can configure PIM to require approvals, Multi-Factor Authentication, or additional verification steps when a user requests temporary access. Once the approved period expires, access is automatically revoked, reducing the risk of standing privileges being misused or compromised. PIM provides comprehensive auditing, logging, and reporting of role activations and assignments, allowing IT teams to monitor usage, detect anomalies, and maintain compliance with regulatory standards such as GDPR, HIPAA, and ISO 27001. PIM integrates with Access Reviews and Conditional Access, providing a holistic approach to identity governance. By enforcing time-bound access, organizations mitigate insider threats, minimize the risk of human error, and strengthen security posture while maintaining operational flexibility. It is particularly useful in large enterprises where multiple administrators require occasional elevated access for configuration changes, troubleshooting, or emergency tasks. PIM ensures that all privileged actions are tracked, creating accountability and enabling proactive risk management.
D Access Reviews are used to periodically evaluate user access to groups, applications, and roles. While they are critical for ongoing compliance and least privilege enforcement, they do not grant temporary elevated permissions or automate approval workflows for privileged accounts.
Question 22
Which feature allows users to securely reset their passwords without IT intervention while enforcing security verification?
A) Conditional Access
B) Self-Service Password Reset (SSPR)
C) Privileged Identity Management
D) Identity Protection
Answer: B
Explanation:
A Conditional Access enforces security policies such as requiring MFA based on user or device conditions but does not allow users to reset their own passwords.
B Self-Service Password Reset (SSPR) is the correct solution because it allows users to securely reset or unlock their passwords without contacting IT support. Organizations can configure multiple verification methods, including email, SMS, authenticator apps, or security questions. By integrating with Multi-Factor Authentication, SSPR ensures that only verified users can reset passwords, enhancing security and reducing the risk of unauthorized access. SSPR also ensures that updated credentials propagate across all connected cloud applications and services, preventing login failures and access issues. From an operational perspective, SSPR dramatically reduces IT helpdesk workload, lowers operational costs, and improves user productivity by minimizing downtime due to forgotten passwords. The feature includes detailed logging and reporting, which allows administrators to monitor reset activity, detect suspicious behavior, and maintain regulatory compliance with frameworks such as GDPR, HIPAA, and ISO standards. SSPR also integrates with Conditional Access policies, so organizations can enforce risk-based restrictions even during the reset process, such as requiring MFA for high-risk users or unusual sign-in locations. This combination of self-service capability, adaptive verification, and auditability makes SSPR a critical component of modern identity governance and access management strategies.
C Privileged Identity Management manages temporary elevated access for administrators but does not provide password reset functionality for regular users.
D Identity Protection monitors risky sign-ins and account compromise but does not provide user-driven password reset capabilities.
Question 23
Which Azure AD authentication method allows users to sign in securely without a password while protecting against phishing?
A) Passwordless FIDO2 Security Keys
B) Multi-Factor Authentication (MFA)
C) Conditional Access
D) Access Reviews
Answer: A
Explanation:
A Passwordless FIDO2 Security Keys are the correct answer because they eliminate the use of passwords entirely. Users authenticate using hardware security keys or biometric data such as fingerprints or facial recognition, which are resistant to phishing and credential theft. This method ensures that authentication is tied to the physical device and cannot be intercepted or reused remotely. Azure AD integrates FIDO2 with Conditional Access policies, enabling organizations to enforce access restrictions, device compliance checks, and adaptive Multi-Factor Authentication when necessary. Passwordless authentication simplifies the user experience by removing password fatigue, reduces IT helpdesk workload for password resets, and enhances organizational security by minimizing attack vectors associated with stolen credentials. By combining passwordless methods with adaptive risk evaluation and monitoring, organizations can implement a robust Zero Trust strategy. In addition, FIDO2 supports cross-platform and cloud-based applications, allowing seamless integration into both Microsoft and third-party environments. Overall, FIDO2 provides a modern, secure, and user-friendly alternative to traditional password-based authentication.
B Multi-Factor Authentication adds an additional verification step but does not eliminate the use of passwords, leaving some risk of password-based attacks.
C Conditional Access enforces policies for access but is not an authentication method.
D Access Reviews review user access periodically but do not provide authentication mechanisms.
Question 24
Which Azure AD feature enforces access policies based on user risk, location, or device compliance?
A) Conditional Access
B) Identity Protection
C) Privileged Identity Management
D) Dynamic Groups
Answer: A
Explanation:
A Conditional Access is correct because it evaluates contextual signals such as device compliance, user risk level, application sensitivity, and location to enforce policies in real time. It can require Multi-Factor Authentication, block risky sign-ins, or enforce session restrictions depending on the assessed risk. Integration with Identity Protection allows organizations to respond automatically to compromised accounts or suspicious behavior. Conditional Access enables granular, adaptive security policies across cloud and hybrid environments, providing robust security without disrupting user productivity. Administrators can create policies targeting specific users, groups, or applications, ensuring protection of sensitive resources while maintaining seamless access for trusted users. It supports Zero Trust principles by continuously validating access requirements and minimizing risk exposure.
B Identity Protection detects risky sign-ins and compromised accounts using adaptive machine learning. While it informs Conditional Access, it cannot enforce access policies directly or control session behaviors, making it reactive rather than preventative.
C Privileged Identity Management provides temporary elevated access to admin roles with auditing and approval workflows. It does not evaluate standard user sign-in context or enforce policies based on risk signals.
D Dynamic Groups automatically assign users to groups based on attributes such as department or location but do not enforce access policies or evaluate risk conditions in real time.
Question 25
Which feature allows administrators to review and certify user access to applications, groups, and roles?
A) Conditional Access
B) Access Reviews
C) Identity Protection
D) Privileged Identity Management
Answer: B
Explanation:
A Conditional Access enforces security policies such as Multi-Factor Authentication and device compliance checks but does not review or certify existing user access over time.
B Access Reviews is correct because it allows administrators to periodically evaluate user access to applications, groups, and roles. This ensures compliance with least privilege principles, prevents unauthorized access, and maintains regulatory standards such as GDPR, HIPAA, or ISO 27001. Automated reminders notify reviewers, while audit reports provide visibility into access decisions and compliance posture. Integration with Privileged Identity Management ensures that elevated role access is also periodically reviewed. Access Reviews help detect stale accounts, unused roles, or excessive permissions, reducing potential attack surfaces. By systematically reviewing access, organizations can enforce governance policies, maintain accountability, and proactively mitigate security risks. This approach ensures that users only retain access necessary for their roles, aligning operational practices with security objectives. It also provides insights for policy refinement, workflow adjustments, and compliance reporting. Access Reviews are a key part of identity lifecycle management, ensuring continuous monitoring of permissions and reducing insider threats while supporting automated remediation for non-compliant access.
C Identity Protection monitors risky sign-ins and account compromise events but does not perform periodic access certification or governance reviews.
D Privileged Identity Management manages temporary administrative access but does not systematically certify user access across the organization.
Question 26
Which Microsoft 365 feature allows organizations to enforce automatic classification and labeling of sensitive content based on custom policies?
A) Trainable Classifiers
B) Sensitivity Labels
C) Data Loss Prevention (DLP) Policies
D) Retention Labels
Answer: B
Explanation
A Trainable Classifiers use machine learning techniques to identify and analyze complex patterns in various types of documents or emails. These classifiers are trained to recognize specific content types, such as contracts, human resources (HR) documents, intellectual property, or other types of sensitive information. However, while Trainable Classifiers excel in detecting these patterns, they do not automatically enforce labeling or protection actions on their own. The purpose of these classifiers is primarily to identify specific data or information that might be relevant to an organization’s compliance or security needs.
To ensure that the detected data receives appropriate protection, A Trainable Classifiers must be integrated into existing data governance policies or labeling rules. These integration efforts enable the automatic application of classification and protection actions. For example, once a document is classified as containing sensitive information based on a Trainable Classifier’s analysis, a predefined policy or rule can be applied to label the document, restrict access, or encrypt it. The key takeaway here is that while A Trainable Classifiers are effective at identifying sensitive information, they require other mechanisms, such as B Sensitivity Labels or C Data Loss Prevention (DLP) policies, to enforce protection actions.
B Sensitivity Labels are the primary method for organizations to classify and protect their data automatically. These labels help organizations apply protection actions to documents and emails based on predefined or custom rules. B Sensitivity Labels provide flexibility by allowing administrators to configure specific rules for how content should be classified and protected. For instance, organizations can set up rules that automatically apply B Sensitivity Labels to content containing specific types of sensitive information, like financial data or personal identifiable information (PII).
The labels themselves can trigger various actions, such as applying encryption, restricting access to certain users, or adding visual markings to the document (such as “Confidential” or “Internal Use Only”). These protective actions help to safeguard sensitive data from unauthorized access, ensuring that only the appropriate individuals or groups have access to classified content.
One of the most significant advantages of B Sensitivity Labels is their automation. Administrators can configure conditions, such as detecting certain sensitive information types, keywords, or content patterns, to automatically apply labels. This reduces the need for manual intervention, ensuring consistent and efficient enforcement of security policies. By automatically classifying content, organizations can ensure that sensitive data is consistently labeled and protected across platforms such as SharePoint, OneDrive, Exchange, and endpoints, regardless of where the content is stored or accessed.
Moreover, B Sensitivity Labels integrate seamlessly with other compliance and security solutions, such as C Data Loss Prevention (DLP) and Information Protection tools. This integration strengthens the organization’s overall governance framework, helping them meet regulatory compliance requirements and prevent data leaks or security breaches. For instance, B Sensitivity Labels can work in conjunction with C DLP policies to detect and prevent unauthorized sharing of sensitive content, ensuring that all sensitive data is adequately protected.
C Data Loss Prevention (DLP) Policies are an essential part of a robust data security strategy. C DLP is designed to identify and prevent the accidental or intentional sharing of sensitive information outside the organization’s secure environment. DLP policies can be configured to detect specific types of sensitive data, such as credit card numbers, Social Security numbers, or other personal information, and block its transmission through email, shared files, or other communication channels.
However, it’s important to note that C DLP does not have the ability to automatically classify or label content. Instead, C DLP policies function alongside B Sensitivity Labels and A Trainable Classifiers to enforce data protection rules. For instance, once a document is classified and labeled as containing sensitive information through B Sensitivity Labels or identified by A Trainable Classifiers, C DLP policies can be applied to prevent that document from being shared externally or with unauthorized users.
While C DLP provides critical protection by preventing the unauthorized sharing of sensitive content, it does not provide the same level of classification and protection as B Sensitivity Labels. Therefore, C DLP works best when used in conjunction with other data protection mechanisms that can classify and apply the necessary protection actions to sensitive information.
D Retention Labels play a different, but equally important, role in data governance. These labels are primarily concerned with managing the lifecycle of content, ensuring that data is retained for the appropriate amount of time and is deleted or archived according to the organization’s records management policies. D Retention Labels help organizations comply with legal or regulatory requirements by defining specific retention periods for various types of content. For example, financial records may need to be kept for seven years, while other types of content may only need to be retained for a shorter period.
While D Retention Labels are crucial for compliance with retention policies, they do not automatically classify or protect sensitive information. The primary purpose of D Retention Labels is to govern the retention and deletion of content, not to enforce data protection rules like encryption or access restrictions. Therefore, D Retention Labels must be used in combination with B Sensitivity Labels or other protection mechanisms to ensure that sensitive content is not only retained or deleted in compliance with policy but also adequately protected throughout its lifecycle.
The key difference between D Retention Labels and B Sensitivity Labels lies in their respective purposes: B Sensitivity Labels focus on protecting data and ensuring it is classified correctly, while D Retention Labels govern the timing and manner of content retention, deletion, or archival. Both types of labels are essential for organizations to maintain a comprehensive data governance strategy, but they address different aspects of data management.
To summarize, each of these tools—A Trainable Classifiers, B Sensitivity Labels, C DLP Policies, and D Retention Labels—plays a unique and complementary role in data protection and compliance. A Trainable Classifiers help to detect and identify sensitive information, while B Sensitivity Labels ensure that content is automatically classified and protected according to organizational policies. C DLP policies then enforce rules to prevent the sharing of sensitive data, and D Retention Labels help manage the lifecycle of content, ensuring that data is retained and disposed of in compliance with legal requirements.
For a well-rounded data governance strategy, organizations should integrate all of these tools to ensure that sensitive data is classified, protected, and managed throughout its lifecycle, from creation to eventual deletion. By leveraging the strengths of A Trainable Classifiers, B Sensitivity Labels, C DLP Policies, and D Retention Labels, organizations can safeguard their sensitive data against leaks, unauthorized access, and compliance violations, while also ensuring that content is retained and disposed of in accordance with internal policies and external regulations.
Question 27
Which Azure AD feature can block sign-ins from risky devices or locations based on real-time risk assessment?
A) Privileged Identity Management
B) Conditional Access
C) Identity Protection
D) Access Reviews
Answer: C
Explanation
A Privileged Identity Management manages elevated access to administrative roles but does not monitor or block risky sign-ins based on device or location. Its primary focus is just-in-time role activation and auditing of privileged activities.
B Conditional Access enforces policies that require MFA or limit access based on conditions like location or device compliance. However, it does not automatically assess risk using real-time risk scoring or block sign-ins due to detected risk events; it relies on static policies rather than adaptive risk analysis.
C Identity Protection is the correct answer because it continuously evaluates sign-ins and user accounts using adaptive machine learning to detect risky behavior. It considers factors such as impossible travel, sign-ins from anonymous IP addresses, leaked credentials, or unfamiliar devices. Organizations can configure policies to block or require additional verification when a risky sign-in is detected. Identity Protection integrates seamlessly with Conditional Access, allowing automated enforcement of risk-based sign-in restrictions. By combining risk detection with policy enforcement, it helps prevent account compromise and strengthens the organization’s overall security posture.
D Access Reviews are used to periodically evaluate users’ access to groups, roles, and applications to maintain least privilege. They do not detect or block risky sign-ins in real time.
Question 28
Which Microsoft 365 service provides automated alerts for suspicious user activity and potential insider threats?
A) Azure Sentinel
B) Microsoft Purview
C) Insider Risk Management
D) Security & Compliance Center
Answer: C
Explanation
A Azure Sentinel is a cloud-native SIEM that collects logs and provides advanced threat analytics across multiple sources. While it can detect security incidents and integrate with Microsoft 365, it is not specifically focused on automated alerts for insider risks within the organization.
B Microsoft Purview primarily focuses on data governance, classification, and compliance management. It includes features like Data Loss Prevention (DLP) and sensitivity labeling but does not directly generate automated alerts for insider threats or suspicious user behavior.
C Insider Risk Management is the correct answer because it allows organizations to monitor and detect suspicious activities such as data exfiltration, policy violations, and risky insider behavior. It uses prebuilt or custom policies to generate alerts when users perform actions that may indicate risk, such as downloading large volumes of sensitive data, sharing files externally, or accessing restricted resources unusually. The solution provides actionable insights, allows workflow integration for investigation, and helps organizations mitigate potential insider threats while maintaining compliance with regulations such as GDPR, HIPAA, and ISO standards.
D Security & Compliance Center provides a centralized interface for managing Microsoft 365 security and compliance settings, policies, and reporting. While it includes monitoring capabilities, it does not specifically focus on automated detection of insider threats in the same way as Insider Risk Management.
Question 29
Which Microsoft 365 feature allows administrators to review and recertify user access to groups, applications, and roles periodically?
A) Privileged Identity Management
B) Access Reviews
C) Conditional Access
D) Identity Protection
Answer: B
Explanation
A Privileged Identity Management manages just-in-time access to administrative roles and tracks privileged actions but does not perform periodic recertification of general user access to groups, applications, or roles.
B Access Reviews is the correct answer because it enables administrators to regularly evaluate whether users still require access to groups, applications, and roles. Organizations can configure recurring review campaigns, send review requests to managers or owners, and make decisions to approve, deny, or remove access. Access Reviews help maintain the principle of least privilege, ensure compliance with regulatory requirements such as GDPR and ISO 27001, and reduce the risk of unnecessary access by former employees or role changes. Automated reporting and integration with Microsoft 365 audit logs provide visibility into completed reviews and streamline governance.
C Conditional Access enforces access policies based on conditions like location, device compliance, or risk level. While it helps protect resources in real time, it does not provide periodic access reviews or recertification capabilities.
D Identity Protection detects risky sign-ins and compromised accounts using adaptive machine learning. Although it strengthens account security, it does not manage periodic review of user access to roles or resources.
Question 30
Which Microsoft 365 feature allows organizations to block sharing of sensitive documents based on content inspection?
A) Sensitivity Labels
B) Data Loss Prevention (DLP) Policies
C) Retention Labels
D) Insider Risk Management
Answer: B
Explanation
A Sensitivity Labels classify and protect content by applying encryption, access restrictions, or visual markings. While they can work with DLP, Sensitivity Labels alone do not automatically block sharing based on content inspection.
B Data Loss Prevention (DLP) Policies is the correct answer because it allows administrators to create rules that detect sensitive content such as financial data, personally identifiable information (PII), or intellectual property. When sensitive content is detected in documents or emails, DLP policies can block sharing, notify the user, or apply protective actions. DLP works across Exchange, SharePoint, OneDrive, and Teams, ensuring that sensitive information is not accidentally or maliciously shared outside the organization. By enforcing these policies, organizations maintain compliance with regulations like GDPR, HIPAA, and ISO standards, while protecting critical business information.
C Retention Labels are used to manage the lifecycle of content by specifying how long it should be retained or when it should be deleted. They do not block sharing of sensitive documents.
D Insider Risk Management monitors and alerts on potential insider threats but does not automatically block sharing of sensitive content based on policy.
Question 31
Which Microsoft 365 feature helps enforce the principle of least privilege by allowing just-in-time activation of administrative roles?
A) Access Reviews
B) Conditional Access
C) Privileged Identity Management
D) Identity Protection
Answer: C
Explanation
A Access Reviews allow organizations to periodically recertify user access to groups, roles, and applications. While they help maintain least privilege over time, they do not provide just-in-time elevation of administrative privileges. Access Reviews are retrospective, evaluating existing access rather than granting temporary role activation.
B Conditional Access enforces access control policies based on location, device compliance, or user risk. It strengthens security by requiring MFA or restricting access, but it does not manage elevated administrative roles or provide temporary activation. Conditional Access focuses on controlling access behavior rather than role lifecycle.
C Privileged Identity Management is the correct answer because it enables organizations to implement just-in-time access for administrative roles while enforcing least privilege principles. Administrators can require approvals, multi-factor authentication, or justification before activation. Access is automatically revoked after a specified time, reducing the risk of standing privileges being misused. PIM also provides detailed auditing and reporting of role activations, helping organizations meet compliance standards like GDPR, HIPAA, and ISO 27001. By tracking who activated roles, when, and for what purpose, PIM increases accountability and reduces insider threat risk. Integration with Access Reviews and Conditional Access ensures that temporary elevated privileges are closely monitored and controlled. This solution is particularly valuable in large organizations where multiple administrators need occasional elevated access for troubleshooting, configuration, or emergency operations, ensuring operational flexibility without compromising security.
D Identity Protection detects risky sign-ins and compromised accounts using adaptive machine learning. It strengthens account security but does not manage administrative role assignments or just-in-time activation.
Question 32
Which Microsoft 365 tool can automatically classify and protect documents based on sensitive information types like credit card numbers or social security numbers?
A) Retention Labels
B) Data Loss Prevention (DLP) Policies
C) Sensitivity Labels
D) Insider Risk Management
Answer: C
Explanation
A Retention Labels are primarily used to define how long content should be retained or when it should be deleted for compliance purposes. They do not automatically classify or protect documents based on sensitive content.
B Data Loss Prevention (DLP) Policies can detect sensitive information and block sharing or take corrective actions. While DLP helps enforce policy, it does not provide direct labeling and classification of content. DLP often works alongside Sensitivity Labels to enforce protection once content is classified.
C Sensitivity Labels is the correct answer because they allow organizations to automatically classify and protect documents and emails containing sensitive information. Labels can be applied based on content inspection, including predefined sensitive information types such as credit card numbers, social security numbers, or custom keywords. Administrators can configure policies to automatically apply encryption, restrict access, or add visual markings like headers, footers, and watermarks. This ensures consistent protection across SharePoint, OneDrive, Teams, and Exchange. Sensitivity Labels integrate with DLP and Compliance Center to provide end-to-end data protection and regulatory compliance. Automated labeling reduces human error, ensures consistent policy enforcement, and supports audits by providing visibility into classified content. Organizations can also configure conditions for when labels are applied automatically versus recommended or manual application. This provides flexibility while ensuring sensitive information is consistently protected, mitigating the risk of accidental data exposure and maintaining compliance with regulations like GDPR, HIPAA, and ISO standards.
D Insider Risk Management monitors potentially risky user actions but does not classify or label documents automatically.
Question 33
Which Microsoft 365 feature can detect unusual user sign-in patterns and block access from compromised accounts?
A) Conditional Access
B) Identity Protection
C) Access Reviews
D) Privileged Identity Management
Answer: B
Explanation
A Conditional Access enforces access policies based on signals such as location or device compliance. While it can block access in certain scenarios, it does not dynamically detect unusual behavior or compromised accounts on its own.
B Identity Protection is the correct answer because it continuously monitors sign-ins and user accounts for anomalies such as impossible travel, sign-ins from unfamiliar devices, or risky IP addresses. It uses adaptive machine learning to detect compromised accounts or potential attacks. Policies can be configured to automatically block risky sign-ins, require MFA, or trigger remediation steps. Identity Protection integrates with Conditional Access to enforce risk-based access controls, ensuring that high-risk sign-ins are prevented from accessing corporate resources. The system also generates alerts and reports for administrators to investigate patterns, providing insights into potential insider threats, credential leaks, or external attacks. By proactively identifying and remediating risky sign-ins, Identity Protection helps organizations prevent account compromise, reduce exposure to cyber threats, and maintain regulatory compliance with standards such as GDPR, HIPAA, and ISO 27001.
C Access Reviews periodically recertify user access to groups and roles but do not detect unusual sign-in behavior.
D Privileged Identity Management manages elevated administrative access but does not monitor general sign-in risk or account compromise.
Question 34
Which Microsoft 365 feature allows organizations to periodically verify whether users should retain access to applications, groups, or roles?
A) Access Reviews
B) Privileged Identity Management
C) Conditional Access
D) Data Loss Prevention (DLP)
Answer: A
Explanation
A Access Reviews is the correct answer because it enables administrators to create recurring campaigns to verify user access. Users, managers, or application owners can review access assignments and decide whether to approve, remove, or modify access. This process ensures that users retain only the access necessary for their role, maintaining the principle of least privilege. Access Reviews help organizations comply with regulatory requirements by providing audit trails of access decisions. They are especially valuable in large organizations with high user turnover or frequent role changes, ensuring that former employees or users who no longer require access do not retain permissions that could expose sensitive data. Integration with Azure AD and other Microsoft 365 services allows automated notifications, approval workflows, and detailed reporting, making the process efficient and auditable. By combining Access Reviews with PIM and Conditional Access, organizations can enforce robust identity governance, minimize insider risk, and maintain compliance while streamlining administrative effort.
B Privileged Identity Management provides just-in-time access to administrative roles but does not periodically verify general user access.
C Conditional Access enforces access rules but does not recertify user access periodically.
D Data Loss Prevention (DLP) enforces content sharing policies but does not manage periodic access verification.
Question 35
Which Microsoft 365 tool allows monitoring and mitigating potential insider threats by analyzing user activity and risk signals?
A) Insider Risk Management
B) Sensitivity Labels
C) Data Loss Prevention (DLP)
D) Retention Labels
Answer: A
Explanation
A Insider Risk Management is the correct answer because it continuously monitors user behavior to detect risky activities that could indicate insider threats. It evaluates signals such as data downloads, sharing sensitive documents externally, unusual file access patterns, or attempts to bypass security controls. Organizations can configure policies to define what constitutes risky behavior, set thresholds, and generate alerts for review. The tool integrates with Microsoft 365 compliance solutions to provide actionable insights, allowing security or HR teams to investigate potential incidents. By analyzing patterns over time, Insider Risk Management helps prevent data leaks, IP theft, or regulatory violations. Reports and dashboards provide visibility into risk trends, supporting audits and proactive governance. This solution strengthens organizational security while maintaining compliance with standards such as GDPR, HIPAA, and ISO 27001.
B Sensitivity Labels classify and protect content but do not monitor user behavior for insider threats.
C Data Loss Prevention (DLP) enforces policies to prevent sharing sensitive content but does not analyze user activity to detect risky behavior.
D Retention Labels manage content lifecycle but do not provide risk monitoring or threat detection.
Question 36
Which Microsoft 365 feature enables organizations to prevent sharing sensitive content outside the organization while allowing internal collaboration?
A) Data Loss Prevention (DLP) Policies
B) Sensitivity Labels
C) Access Reviews
D) Insider Risk Management
Answer: A
Explanation
A Data Loss Prevention (DLP) Policies is the correct answer because it allows administrators to define rules that detect sensitive content such as financial information, personally identifiable information (PII), or intellectual property, DLP can automatically block external sharing, notify the user, or require justification before sending content, these policies ensure that sensitive data stays within the organization while allowing collaboration among internal users, DLP integrates with Microsoft 365 apps such as Teams, SharePoint, OneDrive, and Exchange, enforcing consistent protection across all platforms, detailed reporting and alerts provide administrators with visibility into policy violations, helping prevent accidental or malicious data leaks, by combining DLP with Sensitivity Labels, organizations can apply both classification and preventive measures, maintaining regulatory compliance with GDPR, HIPAA, and ISO standards, safeguarding critical business information, and reducing risks associated with insider threats, misconfigurations, or human error, DLP enables organizations to proactively monitor sensitive content usage and apply automated actions that align with corporate security policies while maintaining workflow efficiency and collaboration.
B Sensitivity Labels classify and protect content by applying encryption, access restrictions, or visual markings like watermarks, they allow organizations to define the sensitivity of information and ensure it is handled according to policy, however, Sensitivity Labels do not automatically block external sharing based on rules or policies, they focus on labeling, classification, and protection rather than enforcing policy-based content movement restrictions, while effective for securing data, they cannot prevent a user from sending sensitive files externally unless combined with DLP policies.
C Access Reviews evaluate ongoing access to resources, allowing organizations to validate that only the right users retain permissions to SharePoint sites, Teams channels, or applications, they support governance and reduce privilege creep, however, Access Reviews do not prevent content from being shared externally or enforce automatic blocking rules, their purpose is to ensure proper access management and compliance rather than controlling the movement or exposure of sensitive content.
D Insider Risk Management monitors user activity for potential insider threats by analyzing behavior patterns, detecting anomalies, and triggering alerts for risky actions, however, it does not enforce automatic blocking of content sharing, its role is focused on identifying and mitigating risks from potentially malicious or negligent insiders rather than directly applying policies to control how content is shared or transmitted.
Question 37
Which Microsoft 365 feature allows temporary administrative access to be granted only when needed, with automatic expiration and auditing?
A) Conditional Access
B) Access Reviews
C) Privileged Identity Management
D) Identity Protection
Answer: C
Explanation
A Conditional Access enforces policies that restrict access based on location, device compliance, or user risk, but it does not provide temporary elevated role access, it manages how users sign in rather than the lifecycle of privileged roles.
B Access Reviews help organizations recertify user access to groups, apps, and roles periodically, while they support least privilege by removing unneeded access, they do not provide just-in-time activation or temporary elevation of administrative rights.
C Privileged Identity Management is the correct answer because it provides just-in-time administrative access with automatic expiration, administrators can require approval workflows, MFA, or business justification before granting temporary elevated access, once the activation period ends, access is automatically revoked, PIM maintains detailed logs of role activations, helping organizations track who accessed what, when, and why, this improves accountability, reduces the risk of standing privileges being misused, and ensures compliance with regulations like GDPR, HIPAA, and ISO 27001, PIM can also integrate with Access Reviews and Conditional Access, providing a unified governance approach, it is especially useful in large enterprises where multiple administrators occasionally need temporary elevated access for troubleshooting, configuration, or emergency tasks, by using PIM, organizations can enforce the principle of least privilege while maintaining operational flexibility and security.
D Identity Protection monitors for risky sign-ins and compromised accounts but does not grant temporary administrative access.
Question 38
Which Microsoft 365 solution can automatically detect sensitive content and apply protection policies such as encryption or access restrictions?
A) Retention Labels
B) Data Loss Prevention (DLP) Policies
C) Sensitivity Labels
D) Insider Risk Management
Answer: C
Explanation
A Retention Labels manage the lifecycle of content to meet compliance requirements, ensuring that data is retained for required periods or deleted when no longer needed, they help organizations meet regulatory obligations and reduce storage clutter, however, Retention Labels do not automatically classify or protect sensitive information, they focus on retention policies rather than security or access control
B Data Loss Prevention (DLP) Policies detect sensitive content across emails, documents, and other Microsoft 365 services and enforce sharing restrictions or notifications, they can prevent accidental or unauthorized sharing of sensitive information such as financial data, PII, or intellectual property, however, DLP Policies do not directly apply classification or encryption labels, they control data movement but do not protect content through labeling or automated encryption.
C Sensitivity Labels is the correct answer because they enable organizations to classify and protect content automatically, policies can be configured to detect sensitive information types such as financial data, personal identifiable information, or intellectual property, once detected, labels can apply encryption, restrict access to authorized users, or add visual markings such as watermarks, Sensitivity Labels work seamlessly across Microsoft 365 apps including SharePoint, Teams, OneDrive, and Exchange, they integrate with DLP to ensure automated protection, reduce human error, and enforce consistent compliance policies, organizations can configure automatic labeling, recommended labeling, or manual labeling depending on the content context, this ensures that sensitive information is safeguarded while supporting regulatory compliance requirements such as GDPR, HIPAA, and ISO standards, by providing classification and protection together, Sensitivity Labels simplify governance and enhance the overall security posture across the organization.
D Insider Risk Management monitors user activities to identify potential insider threats, it analyzes user behavior, detects anomalies, and provides alerts for risky actions, however, it does not classify or protect content, its focus is on monitoring and mitigating insider risk rather than applying security or compliance labels to sensitive information.
Question 39
Which feature helps prevent unauthorized access by requiring adaptive actions based on risk signals like unusual sign-ins or suspicious devices?
A) Conditional Access
B) Identity Protection
C) Access Reviews
D) Privileged Identity Management
Answer: B
Explanation
A Conditional Access enforces access rules by applying pre-configured policies to control which users can access specific applications or resources, it can require multi-factor authentication or limit access based on device compliance, location, or other conditions, however, Conditional Access does not detect compromised accounts or assess real-time risk for adaptive blocking, it operates reactively based on policies rather than analyzing ongoing user behavior or identifying suspicious activity
B Identity Protection is the correct solution because it continuously evaluates user accounts and sign-in behavior using risk analytics, it can detect anomalies such as impossible travel, sign-ins from unfamiliar locations, or suspicious device activity, based on the calculated risk level, administrators can configure automated actions like requiring MFA, blocking access, or triggering alerts, integration with Conditional Access allows automatic enforcement of risk-based policies, Identity Protection helps prevent account compromise, reduces insider threats, and supports compliance with standards such as GDPR, HIPAA, and ISO 27001, detailed reporting enables investigation of high-risk events and ensures accountability across the organization, by proactively mitigating risky sign-ins, Identity Protection strengthens the overall security posture while maintaining user productivity and providing a balance between security and user experience
C Access Reviews focus on recertifying user access to resources, ensuring that only authorized individuals retain permissions to systems, applications, or sensitive data, they are valuable for governance and reducing the risk of privilege creep, however, Access Reviews do not respond to real-time risk events or continuously monitor for compromised accounts, they provide periodic validation rather than ongoing protection against suspicious sign-ins
D Privileged Identity Management manages temporary administrative access to sensitive resources, allowing just-in-time elevation and approval workflows, it reduces the risk of standing admin privileges and helps enforce least privilege access, however, PIM does not block risky sign-ins or monitor account risk in real time, it is focused on access management rather than active threat detection.
Question 40
Which Microsoft 365 tool can detect suspicious insider behavior, such as unusual file downloads or sharing of sensitive documents?
A) Insider Risk Management
B) Sensitivity Labels
C) Data Loss Prevention (DLP)
D) Access Reviews
Answer: A
Explanation
A Insider Risk Management is the correct answer because it monitors user activity for potential insider threats. It evaluates behavior like large downloads, unauthorized sharing, or access to sensitive information outside normal patterns. Policies can be customized to generate alerts, assign investigation workflows, and track incidents over time. Integration with Microsoft 365 compliance and security tools allows organizations to analyze trends, identify high-risk users, and take corrective actions. Insider Risk Management improves visibility, reduces risk of data leakage, and helps maintain regulatory compliance with GDPR, HIPAA, and ISO standards. Its dashboards provide actionable insights for security and HR teams to respond quickly to potential threats.
B Sensitivity Labels classify and protect content by applying encryption, access restrictions, and visual markings such as headers, footers, or watermarks, they ensure that sensitive data is handled according to organizational policies and prevent unauthorized sharing outside approved users or groups, however, sensitivity labels focus on protecting content and controlling its distribution and do not monitor user behavior, meaning they cannot detect suspicious activities, insider threats, or unusual interactions with the data, they are designed to safeguard information rather than analyze how users interact with it
C Data Loss Prevention (DLP) enforces rules for sharing and storing sensitive information, it can automatically detect sensitive data such as financial records, personal information, or intellectual property and prevent it from being sent or shared improperly, DLP helps organizations maintain compliance and reduce the risk of accidental data leaks, however, DLP is rule-based and does not track behavior patterns, analyze anomalies, or monitor for insider threats, while it controls how data is shared, it cannot identify if a user is accessing, copying, or moving data in a suspicious manner over time
D Access Reviews recertify user access by allowing organizations to regularly validate whether users still require permissions to resources, systems, SharePoint sites, or Teams channels, this process helps prevent privilege creep and ensures that only authorized individuals maintain access to sensitive data, while access reviews are valuable for maintaining proper access hygiene, they do not monitor insider activity, nor do they provide continuous insight into real-time behavior, which means malicious or unusual activity can go undetected between review cycles.
