Microsoft SC-401 Administering Information Security in Microsoft 365 Exam Dumps and Practice Test Questions Set6 Q101-120 

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Question 101: 

Which Microsoft 365 feature allows administrators to enforce access restrictions based on user location and device compliance?

A) Sensitivity Labels
B) Conditional Access
C) DLP Policies
D) Microsoft Defender Antivirus

Answer: B

Explanation:

Conditional Access is a powerful security tool in Microsoft 365 that empowers administrators to create granular, context-aware access policies to safeguard organizational resources. These policies evaluate various factors, such as user location, device compliance, and risk signals, before allowing access to critical applications and datA) For example, Conditional Access can enforce Multi-Factor Authentication (MFA) for users accessing sensitive resources from unfamiliar locations or prompt additional security measures when the device being used is non-compliant with corporate standards.

While Conditional Access controls who can sign in and when, it does not directly govern content classification or data protection. Sensitivity Labels, for instance, help classify and safeguard content based on its sensitivity but are not designed to enforce access control policies. Similarly, Data Loss Prevention (DLP) policies monitor and restrict the movement of sensitive information, but they do not prevent unauthorized sign-ins or access attempts. Similarly, Defender Antivirus protects endpoints from malware and other security threats but does not enforce compliance or access controls in real-time.

For comprehensive security, Conditional Access integrates with Intune and Azure AD Identity Protection. This allows policies to be adapted based on device status or the user’s risk profile, ensuring that security measures are continuously aligned with evolving threats. Administrators can target policies to specific users, groups, or apps and track policy enforcement through detailed audit logs. This proactive monitoring capability helps mitigate unauthorized access risks, maintain regulatory compliance, and ensure sensitive information is only accessed securely while allowing trusted users to remain productive.

Question 102: 

Which Microsoft 365 tool detects risky insider behavior, such as abnormal sharing or data exfiltration attempts?

A) Microsoft Purview Insider Risk Management
B) DLP Policies
C) Sensitivity Labels
D) Azure AD Conditional Access

Answer: A

Explanation:

Microsoft Purview Insider Risk Management is a key tool for organizations to detect and mitigate insider threats by monitoring user activity for suspicious behaviors that may indicate potential security risks. It analyzes patterns such as abnormal file downloads, mass data transfers, or attempts to exfiltrate sensitive information, assigning risk scores to users based on their actions. When risky behavior is detected, the system generates alerts and provides administrators with investigation tools, enabling them to take timely and informed actions to prevent potential breaches. These capabilities are essential for safeguarding sensitive data against insider threats, whether from malicious actors or inadvertent mistakes.

While Data Loss Prevention (DLP) policies focus on preventing accidental data leaks by controlling the flow of sensitive information, they do not offer the behavioral analysis that Insider Risk Management does. Similarly, Sensitivity Labels help classify and protect content based on its sensitivity but do not track or detect user actions that may pose a risk to that content. Conditional Access is another complementary tool that enforces security policies related to user access but does not monitor the behavior of users once access is granteD)

Insider Risk Management integrates seamlessly with Microsoft 365 workloads, offering a holistic approach to security by providing audit logs, detailed reporting, and compliance features. Administrators can create targeted policies based on user roles, departments, or content types, tailoring the monitoring to specific organizational needs. Proactive monitoring of user activities not only helps identify and mitigate insider threats but also aids in regulatory compliance and enhances organizational security, all while maintaining a careful balance with employee privacy

Question 103: 

Which Microsoft 365 feature automatically applies encryption and access restrictions to documents containing sensitive data?

A) Sensitivity Labels with auto-labeling
B) Conditional Access
C) DLP Policies
D) Microsoft Defender Antivirus

Answer: A

Explanation:

Sensitivity Labels with auto-labeling provide an automated and streamlined way to protect sensitive content within Microsoft 365 environments. These labels can detect specific types of sensitive information, such as Personally Identifiable Information (PII), financial data, or confidential business documents. Once detected, auto-labeling automatically applies classification and protection policies to ensure that the content is handled appropriately based on its sensitivity level. This can include enforcing encryption to safeguard data during storage and transit, restricting access to authorized users only, and preventing potentially risky actions like copying, forwarding, or printing the content.

In contrast, Conditional Access manages user access based on various factors like location, device compliance, and user risk profiles but does not classify or protect the content itself. While Data Loss Prevention (DLP) Policies monitor sensitive data usage and alert administrators to potential risks, they do not automatically apply protection or classification labels to the content. Similarly, Defender Antivirus focuses on securing endpoints from malware but does not offer content-level protection or classification capabilities.

Auto-labeling significantly reduces the risk of human error, ensuring that sensitive content is consistently classified and protected in accordance with organizational policies. This consistency helps organizations meet regulatory compliance requirements for frameworks such as GDPR, HIPAA, and PCI DSS, which mandate the secure handling of sensitive datA)

Administrators can configure rules for different departments, content types, or sensitivity levels, allowing them to tailor protection to the unique needs of their organization. In addition, reporting and auditing provide visibility into labeled content usage, allowing for monitoring of compliance and ensuring secure collaboration across Microsoft 365 workloads. This holistic approach not only strengthens governance but also supports more effective risk management and data security.

Question 104:

Which Microsoft 365 solution aggregates alerts from email, identity, endpoints, and cloud apps for unified investigation?

A) Microsoft 365 Defender portal
B) Azure AD Identity Protection
C) Microsoft Compliance Manager
D) Exchange Online Protection

Answer: A

Explanation:

The Microsoft 365 Defender portal serves as a centralized hub for managing security incidents across multiple Microsoft 365 workloads, integrating data from tools like Microsoft Defender for Endpoint, Defender for Office 365, Defender for Identity, and more. This unified approach enables administrators to monitor and respond to threats with a holistic view of security events. By correlating alerts into comprehensive incidents, the Defender portal helps prioritize the most critical threats, providing AI-driven remediation guidance to streamline the response process.

While Azure AD Identity Protection focuses specifically on identifying and mitigating risky sign-ins, ensuring that only authenticated and compliant users can access resources, the Defender portal consolidates these alerts into a single interface for easier management. Similarly, Compliance Manager helps evaluate an organization’s compliance posture, identifying gaps in policies and providing recommendations for improvement, but it does not directly handle threat detection or remediation.

Exchange Online Protection (EOP) is another critical component of the Microsoft 365 security ecosystem that focuses solely on securing email from phishing, malware, and spam. However, its scope is limited to email security, whereas the Defender portal spans across various workloads, consolidating security alerts and offering a more comprehensive view of organizational risk.

One of the key advantages of Microsoft 365 Defender is its automated investigation capabilities, which help reduce alert fatigue and improve response times. By automatically investigating alerts, the system can identify and mitigate threats faster, freeing up security teams to focus on more complex issues. Administrators can track complex attack chains, enforce consistent security policies across workloads, and generate detailed compliance reports for audits.

By consolidating threat data from multiple sources and leveraging AI-driven insights, the Defender portal significantly strengthens organizational security. It enhances proactive threat management and improves operational efficiency, empowering security teams to respond faster, more effectively, and with greater confidence across the Microsoft 365 environment.

Question 105: 

Which Microsoft 365 feature prevents accidental sharing of sensitive content in Teams messages, emails, and documents?

A) DLP Policies
B) Sensitivity Labels
C) Azure AD Conditional Access
D) Microsoft Defender Antivirus

Answer: A

Explanation:

Data Loss Prevention (DLP) Policies are a crucial part of Microsoft 365’s security framework, specifically designed to monitor and protect sensitive content. These policies help identify and safeguard data such as financial information, Personally Identifiable Information (PII), and health records, which are subject to stringent regulatory protections. When DLP detects sensitive content in documents or emails, it can take a variety of actions, such as blocking sharing of that content, alerting the user about the policy violation, or notifying administrators about potential risks. This proactive approach ensures that sensitive data does not leave the organization or fall into the wrong hands, reducing the risk of data breaches.

While Sensitivity Labels play an important role in classifying and protecting content based on its sensitivity, they do not enforce real-time sharing restrictions like DLP does. Sensitivity Labels help define access levels (e.g., whether a document is “Confidential” or “Highly Confidential”), and they can apply encryption or watermarks to sensitive content, but they do not actively prevent sharing or transfer of information.

Conditional Access also complements DLP by enforcing device- or location-based access to resources, ensuring that only compliant devices or trusted locations can access sensitive datA) However, Conditional Access does not focus on the content itself or its movement between users or systems.Similarly, Defender Antivirus secures endpoints from malware and other security threats but does not govern data sharing or monitor the transfer of sensitive information. While Defender helps protect against external threats, it doesn’t provide the same level of content-specific protection that DLP does.

With DLP, administrators can define rules based on specific teams, departments, or even the type of content being shared, ensuring that sensitive information remains secure even in collaborative environments. The ability to customize rules allows organizations to strike a balance between collaboration and security, ensuring that only authorized individuals or groups can access or share sensitive datA)

Audit logs provide visibility into policy enforcement and incidents, allowing security teams to track how data is being handled and investigate potential breaches or non-compliance. By implementing DLP, organizations can not only ensure that sensitive information is safeguarded but also help maintain compliance with data protection regulations like GDPR, HIPAA, and others. This reduces the risk of accidental or malicious exposure of critical data, strengthening overall data governance and minimizing the risk of costly compliance violations.

Question 106: 

Which Microsoft 365 feature ensures that only compliant devices can access sensitive SharePoint and OneDrive content?

A) Sensitivity Labels
B) Conditional Access
C) DLP Policies
D) Microsoft Defender Antivirus

Answer: B

Explanation:

Conditional Access in Microsoft 365 plays a critical role in ensuring that only compliant and trusted devices can access corporate resources, such as SharePoint and OneDrive. Before granting access to these resources, Conditional Access evaluates the compliance status of the device. For example, if a device is found to be non-compliant—for instance, if it lacks the latest security updates or does not have encryption enabled—Conditional Access can either block access entirely or require the user to take corrective actions (like installing updates or enabling encryption) before they can access sensitive resources. This ensures that devices meet the necessary security standards to prevent unauthorized access or data exposure.

However, Sensitivity Labels and Data Loss Prevention (DLP) Policies focus more on data classification and protection, rather than controlling device access. Sensitivity Labels are used to classify and apply protections (like encryption or access restrictions) to documents and emails based on their sensitivity level, but they do not regulate which devices or users can access the content. DLP Policies monitor data usage to prevent accidental leaks, but they do not evaluate whether the device accessing the data is secure or compliant.

On the endpoint security side, Defender Antivirus protects devices from malware and other threats but does not govern device compliance for access to Microsoft 365 services. While Defender secures the device from external threats, it doesn’t manage whether that device is authorized to access sensitive content in the first place.

By integrating Conditional Access with other security controls, administrators can enforce device compliance policies that ensure only properly secured devices can access sensitive datA) This helps maintain a strong security posture while allowing trusted users to remain productive. Policies can be tailored for specific users, groups, or even applications, giving administrators fine-grained control over how access is granteD)

Additionally, audit logs track access events, providing visibility into who accessed what resources, from which devices, and under what conditions. This enables organizations to monitor access patterns, detect potential security incidents, and ensure regulatory compliance (e.g., GDPR, HIPAA) by ensuring that only authorized devices are allowed to interact with sensitive datA) By combining device compliance enforcement with comprehensive access control, Conditional Access effectively reduces the risk of unauthorized access and strengthens overall security governance.

Question 107: 

Which Microsoft 365 solution automatically revokes external file access after a set period?

A) Sensitivity Labels with expiration policies
B) Conditional Access
C) DLP Policies
D) Microsoft Defender Antivirus

Answer: A

Explanation:

Sensitivity Labels with expiration policies provide a critical layer of security for managing sensitive information shared externally. Administrators can set an automatic expiration date for shared files, meaning that after a predefined duration, the files become inaccessible to external users. This reduces the long-term risk of sensitive data exposure, ensuring that files shared with third parties or external collaborators do not remain accessible indefinitely. By automatically revoking access after a set time, expiration policies help mitigate the potential security risks associated with outdated or forgotten external sharing.

In addition to controlling access duration, Sensitivity Labels can also enforce additional protective measures such as encryption to safeguard the content both at rest and in transit. They can also apply restrictions on actions like copying, printing, or forwarding documents, ensuring that even if the document is accessed by an external party, it is more difficult to disseminate or misuse. However, while Sensitivity Labels can classify content and apply protections, they do not manage device access or automatically expire permissions after a set perioD)

On the other hand, Conditional Access controls access to resources based on device compliance, user location, or other conditions, but it does not have the ability to set expiration dates for permissions on shared files. DLP Policies focus on monitoring data for potential leaks and can prevent the unauthorized sharing of sensitive information, but they do not automatically revoke access or apply expiration to shared content.

Defender Antivirus secures devices from malware and other security threats, but it does not control content access or sharing.

The addition of expiration policies to Sensitivity Labels enables organizations to have more granular control over their datA) This feature aligns well with maintaining regulatory compliance, especially with frameworks like GDPR and HIPAA, which require strict controls over the duration and scope of data access. It also supports secure collaboration by allowing external sharing for a limited time, reducing the risk of data leakage while still enabling necessary interactions with external parties.

Administrators can track and audit file access through the application of these labels, providing visibility into who accessed the content and for how long, which is essential for maintaining oversight and responding to potential security incidents. This balance of security and productivity ensures that sensitive information is adequately protected, while still allowing for flexible and temporary collaboration with trusted external users.

Question 108: 

Which Microsoft 365 tool detects risky insider behavior such as unusual downloads or sharing patterns?

A) Microsoft Purview Insider Risk Management
B) DLP Policies
C) Sensitivity Labels
D) Azure AD Conditional Access

Answer: A

Explanation:

Microsoft Purview Insider Risk Management is a powerful tool designed to detect and manage insider threats by continuously monitoring user activity within the organization. It looks for suspicious behaviors that could indicate potential risks, such as abnormal downloads, mass data transfers, or unauthorized sharing of sensitive content. When these behaviors are detected, Insider Risk Management assigns a risk score to the user involved, generates alerts for administrators, and provides a range of tools to investigate further. This helps organizations stay ahead of potential threats by identifying risks early and allowing for a swift, data-driven response.

In contrast, Data Loss Prevention (DLP) Policies focus primarily on preventing accidental data leaks, such as mistakenly sending sensitive data to the wrong recipient or sharing it with unauthorized users. DLP policies monitor for the movement of sensitive content but do not evaluate the behavioral patterns of users. They are essential for preventing accidental exposure but do not have the capability to detect insider threats based on unusual or malicious user activity. Similarly, Sensitivity Labels classify and apply protections to content, such as encryption or access restrictions, but they do not analyze user behavior or identify insider risks.

Conditional Access focuses on managing device- and location-based access to Microsoft 365 resources, ensuring that only authorized and compliant devices or users in trusted locations can access sensitive datA) However, it does not monitor or analyze user activity once access has been granted, leaving a gap in detecting suspicious behavior from users with authorized access.

Insider Risk Management integrates seamlessly with Microsoft 365 workloads, providing a holistic view of potential threats across the entire ecosystem. By collecting data from services like SharePoint, OneDrive, Teams, and more, it offers detailed reports and audit logs that administrators can use to track activities and identify patterns indicative of insider threats. These reports are crucial for both proactive detection and for ensuring that organizations stay compliant with regulatory frameworks like GDPR or HIPAA)

Administrators can configure Insider Risk Management policies tailored to specific departments, roles, or content types, enabling them to prioritize monitoring and alerting based on the specific needs and risk profiles of different parts of the organization. This proactive approach allows businesses to detect and mitigate insider threats before they escalate into serious security incidents, while also ensuring that collaboration remains secure and compliant with organizational policies.

Question 109:

Which Microsoft 365 feature enforces multi-factor authentication only for high-risk sign-ins?

A) Sensitivity Labels
B) Azure AD Conditional Access
C) DLP Policies
D) Microsoft Defender Antivirus

Answer: B

Explanation:

Azure AD Conditional Access is a powerful tool that allows administrators to enforce more secure and flexible authentication policies based on the risk level of a user’s sign-in attempt. For instance, if a user is attempting to log in from a high-risk location (e.g., a foreign country or a known malicious IP), or from a non-compliant device, Conditional Access can trigger Multi-Factor Authentication (MFA) to ensure that the user’s identity is thoroughly verified before granting access. On the other hand, users attempting to sign in from trusted devices or familiar locations may be allowed to access resources without the need for additional authentication steps, thereby reducing friction and improving user productivity.

While Sensitivity Labels help classify and protect content based on its sensitivity (e.g., applying encryption, restricting access, or enforcing retention policies), they do not manage user authentication or control access at the point of sign-in. Similarly, Data Loss Prevention (DLP) Policies monitor sensitive data to prevent accidental leaks but do not enforce authentication or access controls. These DLP policies alert administrators about potential data sharing risks, but they don’t take action based on the user’s sign-in context.

Defender Antivirus, on the other hand, secures devices by protecting them from malware and security threats but does not directly handle the evaluation of a user’s sign-in risk or manage authentication.

Azure AD Conditional Access integrates with tools like Intune and Identity Protection to provide adaptive access—ensuring that policies are enforced based on device compliance and user risk profiles. For example, a high-risk user could be required to provide additional verification via MFA or be denied access altogether, depending on the configured policy.

Question 110: 

Which Microsoft 365 solution provides AI-driven incident investigation and automated remediation across multiple workloads?

A) Microsoft 365 Defender portal
B) DLP Policies
C) Sensitivity Labels
D) Exchange Online Protection

Answer: A

Explanation:

The Microsoft 365 Defender portal consolidates alerts from email, identity, endpoints, and cloud apps into correlated incidents. AI-driven analysis prioritizes threats, recommends actions, and automates investigation and remediation, reducing alert fatigue. DLP Policies monitor sensitive data but cannot remediate incidents automatically, Sensitivity Labels classify content but do not investigate threats, and Exchange Online Protection secures email only. The portal enables administrators to track complex attack chains, enforce consistent policies, and generate compliance reports. By centralizing threat detection and response, organizations enhance security posture, mitigate risks proactively, and maintain effective protection across all Microsoft 365 workloads.

Question 111: 

Which Microsoft 365 feature allows administrators to classify and protect documents containing sensitive content automatically?

A) Sensitivity Labels with auto-labeling
B) Conditional Access
C) DLP Policies
D) Microsoft Defender Antivirus

Answer: A

Explanation:

Sensitivity Labels with auto-labeling automatically detect sensitive content such as PII, financial data, or confidential corporate information and apply classification and protection policies. These policies can enforce encryption, restrict access, and prevent copying, printing, or forwarding. Conditional Access manages access based on device or location but does not classify content. DLP Policies monitor for potential data leaks but do not automatically apply protection, and Defender Antivirus secures endpoints against malware. Auto-labeling reduces human error, ensures consistent security enforcement, and supports regulatory compliance with standards like GDPR or HIPAA) Administrators can configure rules by department, content type, or sensitivity level, and auditing provides visibility into content usage. This ensures sensitive data is consistently protected while enabling secure collaboration.

Question 112: 

Which Microsoft 365 solution identifies insider threats by monitoring unusual downloads or sharing activity?

A) Microsoft Purview Insider Risk Management
B) DLP Policies
C) Sensitivity Labels
D) Azure AD Conditional Access

Answer: A

Explanation:

Microsoft Purview Insider Risk Management detects potentially risky insider activity, such as abnormal downloads, large data transfers, or attempts to exfiltrate sensitive information. It provides risk scoring, alerts, and investigation tools. DLP Policies prevent accidental leaks but do not analyze user behavior, Sensitivity Labels classify and protect content without monitoring behavior, and Conditional Access enforces access rules but does not detect insider threats. Administrators can configure targeted policies by department, role, or content type. Audit logs and reporting enable compliance verification and proactive threat mitigation. Using this solution reduces insider threat risk, enhances organizational governance, and maintains secure collaboration across Microsoft 365 workloads.

Question 113: 

Which Microsoft 365 feature prevents sharing of sensitive content in Teams messages, emails, and documents?

A) DLP Policies
B) Sensitivity Labels
C) Azure AD Conditional Access
D) Microsoft Defender Antivirus

Answer: A

Explanation:

DLP Policies monitor content across Microsoft 365 services such as Teams, Exchange, OneDrive, and SharePoint. When sensitive content is detected, the policies can block sharing, alert users, or notify administrators. Sensitivity Labels classify and protect content but do not actively prevent sharing in real time. Conditional Access controls access but does not analyze content, and Defender Antivirus secures endpoints without monitoring sharing. DLP enables administrators to define rules based on department, content type, or user role, ensuring secure internal collaboration and preventing external leaks. Audit logs provide visibility into incidents and policy enforcement. Implementing DLP reduces the risk of accidental or malicious data exposure while supporting regulatory compliance.

Question 114: 

Which Microsoft 365 tool aggregates alerts from email, identity, endpoints, and cloud apps for unified investigation?

A) Microsoft 365 Defender portal
B) Azure AD Identity Protection
C) Microsoft Compliance Manager
D) Exchange Online Protection

Answer: A

Explanation:

The Microsoft 365 Defender portal serves as a centralized security operations platform that consolidates alerts from multiple Microsoft 365 workloads, including email, endpoints, identity, and cloud applications, into a unified view. By aggregating and correlating related alerts into comprehensive incidents, the portal provides administrators with a holistic perspective of threats, making it easier to understand complex attack chains that may span several services. This cross-workload visibility is crucial for detecting multi-vector attacks that could otherwise go unnoticed when monitoring individual systems in isolation. By linking alerts from endpoints, email, identity, and cloud apps, Defender portal allows security teams to identify patterns, track attacker movements, and respond more effectively to incidents.

The platform leverages AI-driven analytics and machine learning to prioritize threats and generate actionable recommendations for investigation and remediation. Automated investigation capabilities help reduce the burden on security teams by handling repetitive tasks, collecting relevant evidence, and suggesting mitigation actions. This approach minimizes alert fatigue, allowing administrators to focus on high-priority threats that pose the most significant risk to the organization. Automated remediation also accelerates response times, reducing the window of opportunity for attackers to exploit vulnerabilities or persist within the environment.

While other Microsoft tools provide specialized security functions, the Defender portal offers comprehensive incident management across workloads. For example, Azure AD Identity Protection focuses primarily on monitoring risky sign-ins and applying conditional access policies to mitigate identity-related risks. Compliance Manager evaluates compliance posture and regulatory alignment but does not actively manage real-time threats. Exchange Online Protection secures email traffic by filtering malware and spam but does not provide unified visibility across endpoints, identities, and cloud applications. In contrast, the Defender portal integrates all these perspectives, enabling administrators to correlate data, enforce consistent security policies, and generate compliance reports from a single platform.

By centralizing threat detection, investigation, and response, organizations can strengthen their overall security posture, proactively mitigate risks, and streamline operations. Security teams gain the ability to monitor threats across multiple workloads, respond quickly to incidents, and maintain continuous situational awareness. The portal also supports regulatory reporting by providing detailed audit logs and compliance insights, helping organizations demonstrate accountability and adherence to industry standards. Overall, Microsoft 365 Defender acts as a critical hub for coordinated security operations, enabling efficient, effective, and scalable protection across the entire Microsoft 365 environment.

Question 115: 

Which Microsoft 365 feature automatically revokes external file access after a specific time period?

A) Sensitivity Labels with expiration policies
B) Conditional Access
C) DLP Policies
D) Microsoft Defender Antivirus

Answer: A

Explanation:

Sensitivity Labels with expiration policies in Microsoft 365 provide organizations with advanced data protection capabilities that ensure sensitive information remains secure throughout its lifecycle, even after it has been shared externally. These labels enable administrators to automatically revoke access to shared files after a predefined period, significantly reducing the risk of prolonged data exposure. For instance, when an organization shares confidential reports or documents with external partners, expiration policies ensure that access automatically ends after a set timeframe—such as 30 or 60 days—without requiring manual intervention. This approach prevents outdated or sensitive information from remaining accessible indefinitely, thereby strengthening data governance and minimizing potential security risks.

Beyond expiration settings, Sensitivity Labels can apply encryption and access restrictions at the document or email level. Encryption ensures that only authorized users with valid permissions can view the content, while access controls can prevent actions like copying, printing, or forwarding the file. These measures provide layered protection, allowing organizations to maintain control of their data even after it leaves their immediate environment. This is particularly important in industries with strict compliance requirements, such as healthcare, finance, or government, where data privacy and retention regulations demand consistent enforcement of access controls.

While Conditional Access in Azure AD provides risk-based authentication based on user location, device compliance, or network conditions, it does not include the ability to automatically revoke or expire file access. Similarly, Data Loss Prevention (DLP) policies focus on monitoring and restricting the sharing of sensitive information in real time but do not control access duration. Microsoft Defender Antivirus, on the other hand, protects endpoints from malware and other cyber threats but does not manage data access or expiration. Therefore, Sensitivity Labels with expiration policies fill a crucial gap by offering time-bound protection directly at the data level, independent of user actions or device conditions.

In addition to security and compliance benefits, these labels enhance auditing and accountability. Administrators can monitor file access events, track when permissions expire, and adjust policy durations as needed to align with business requirements. This provides greater visibility and ensures that external sharing remains both secure and controlleD) By automatically limiting access duration, organizations strike the right balance between security and collaboration—enabling efficient partnerships while protecting sensitive data from unauthorized or unintended long-term exposure.

Question 116: 

Which Microsoft 365 solution allows administrators to monitor user behavior and detect risky insider actions?

A) Microsoft Purview Insider Risk Management
B) DLP Policies
C) Sensitivity Labels
D) Azure AD Conditional Access

Answer: A

Explanation:

Microsoft Purview Insider Risk Management monitors activities such as unusual downloads, abnormal sharing, or attempts to exfiltrate sensitive datA) It assigns risk scores, triggers alerts, and provides investigative tools. DLP Policies prevent accidental data leaks but do not analyze behavior. Sensitivity Labels classify content but do not detect user risks. Conditional Access manages device- or location-based access but does not monitor insider actions. Administrators can configure targeted policies by department, role, or content type. Audit logs and reports help verify compliance and proactively mitigate insider threats. This ensures sensitive data is protected while maintaining secure collaboration and reducing potential data breaches.

Question 117: 

Which Microsoft 365 feature enforces multi-factor authentication based on sign-in risk level?

A) Sensitivity Labels
B) Azure AD Conditional Access
C) DLP Policies
D) Microsoft Defender Antivirus

Answer: B

Explanation:

Azure AD Conditional Access is a critical element of Microsoft’s identity and access management framework, designed to provide intelligent, risk-based access control for users connecting to Microsoft 365 and other cloud or on-premises resources. It acts as an automated decision-making system that continuously evaluates the context of each sign-in attempt before granting or denying access. Conditional Access policies analyze a variety of signals—including user identity, location, device compliance status, application sensitivity, and real-time risk scores—to determine whether access should be allowed, denied, or require additional verification through multi-factor authentication (MFA). This adaptive approach ensures that authentication strength is aligned with the assessed risk level, allowing legitimate users to access resources smoothly while mitigating the risk of unauthorized entry.

At the core of Conditional Access is its ability to balance security with user experience. For example, if a user logs in from a trusted, compliant device within a corporate network, the system can allow access without extra authentication steps. Conversely, if the same account attempts to sign in from an unfamiliar location, an unmanaged device, or displays suspicious activity patterns, the policy may prompt for MFA, restrict access, or require the user to meet compliance conditions. This ensures that only verified and trusted sessions can reach sensitive corporate resources. Organizations can also create granular rules to apply different controls to various user groups, applications, and environments—supporting a Zero Trust security model where every access attempt is continuously validateD)

While Conditional Access is centered on securing access and authentication, other Microsoft security tools serve complementary roles. Sensitivity Labels classify and protect content by applying encryption and access restrictions at the document or email level but do not control how or when users authenticate. Data Loss Prevention (DLP) policies, on the other hand, monitor and restrict the sharing of sensitive data across Microsoft 365 apps, focusing on information governance rather than authentication. Microsoft Defender Antivirus provides endpoint-level protection by detecting and blocking malware but does not assess sign-in risks or enforce user-based access policies. Together, these tools create a layered defense strategy that secures both identities and data throughout the Microsoft ecosystem.

In summary, Azure AD Conditional Access provides adaptive, context-aware control over user authentication and resource access. By dynamically adjusting access requirements based on risk, it enhances security, supports compliance, and maintains productivity—forming a foundational pillar of Microsoft’s Zero Trust and cloud security architecture.

Question 118:

Which Microsoft 365 tool consolidates alerts from multiple workloads and automates investigation and remediation?

A) Microsoft 365 Defender portal
B) DLP Policies
C) Sensitivity Labels
D) Exchange Online Protection

Answer: A

Explanation:

The Microsoft 365 Defender portal serves as a unified security operations platform that consolidates threat intelligence, alerts, and incident data across multiple Microsoft 365 workloads, including email, endpoints, identities, and cloud applications. Its primary goal is to provide security teams with a single pane of glass to monitor, investigate, and respond to threats in real time. Rather than analyzing alerts from individual products in isolation, the Defender portal correlates related alerts into a single, comprehensive incident, revealing the full attack chain across services. This capability helps analysts see how an initial phishing email might lead to compromised credentials, lateral movement, and eventual data exfiltration, enabling faster and more effective response.

Using advanced AI-driven analytics and machine learning, Microsoft 365 Defender continuously analyzes telemetry from Microsoft Defender for Endpoint, Defender for Office 365, Defender for Cloud Apps, and Defender for Identity. It identifies patterns and anomalies that could indicate sophisticated, multi-vector attacks. By prioritizing alerts based on severity, impact, and correlation, the portal helps reduce alert fatigue and ensures that security teams focus their efforts on the most pressing and high-risk incidents. The platform also includes automated investigation and remediation capabilities, allowing routine containment actions—such as isolating devices, blocking users, or removing malicious emails—to occur without human intervention. This automation dramatically shortens response times and minimizes the potential impact of threats.

In contrast, other Microsoft 365 tools address different aspects of data security and compliance but do not provide the same cross-workload visibility or threat correlation. Data Loss Prevention (DLP) policies, for instance, focus on preventing accidental or intentional data leaks by monitoring and restricting sensitive information sharing, but they do not investigate or remediate active security incidents. Sensitivity Labels classify and encrypt content to control access but do not analyze attack behavior. Similarly, Exchange Online Protection focuses on email-based threats like spam and phishing but lacks visibility into endpoint or identity compromises. The Defender portal bridges these gaps by integrating signals from all these layers, providing a holistic understanding of an organization’s security posture.

In summary, the Microsoft 365 Defender portal enables organizations to detect, investigate, and respond to complex attacks efficiently. Through AI-powered insights, automated response capabilities, and deep integration across Microsoft’s security ecosystem, it empowers security teams to work smarter, reduce response time, and strengthen overall cyber resilience against evolving threats.

Question 119: 

Which Microsoft 365 feature blocks sharing of sensitive information in Teams, emails, and documents?

A) DLP Policies
B) Sensitivity Labels
C) Azure AD Conditional Access
D) Microsoft Defender Antivirus

Answer: A

Explanation:

Data Loss Prevention (DLP) policies in Microsoft 365 are essential tools that help organizations protect sensitive information from being accidentally or intentionally shared with unauthorized users. These policies are integrated across Microsoft 365 services, including Exchange Online, SharePoint Online, OneDrive for Business, and Microsoft Teams. By leveraging built-in intelligence and data classification capabilities, DLP policies automatically identify and monitor sensitive data types such as credit card numbers, Social Security numbers, health records, or financial information. Once detected, the system can take automated actions to prevent data leakage—such as blocking external sharing, restricting email delivery, displaying policy tips to users, or notifying administrators for further investigation and remediation.

A key strength of DLP lies in its ability to perform real-time content inspection and policy enforcement. For instance, if a user attempts to send an email containing sensitive financial data to an external domain, the DLP policy can immediately block the message or warn the user of the violation, prompting corrective action before data leaves the organization. Similarly, in Microsoft Teams or SharePoint, DLP policies can prevent users from sharing sensitive files with external collaborators unless the appropriate controls are in place. These proactive protections help organizations maintain compliance with data privacy regulations such as GDPR, HIPAA, and PCI-DSS while ensuring that employees remain productive and informed about proper data handling practices.

While other Microsoft 365 security features also contribute to data protection, DLP serves a distinct and complementary purpose. Sensitivity Labels, for example, focus on classifying and encrypting content based on its sensitivity level but do not monitor or block sharing in real time. Conditional Access policies, on the other hand, control access to Microsoft 365 resources based on user identity, device compliance, or geographic location but do not analyze content or prevent data transmission. Similarly, Microsoft Defender Antivirus is designed to safeguard devices against malware and threats, not to regulate how data is shared or storeD) DLP bridges this gap by enforcing continuous, content-aware protection across collaboration and communication platforms.

In conclusion, Microsoft 365 DLP policies provide a comprehensive, automated, and intelligent approach to protecting sensitive information across cloud environments. By combining detection, prevention, and user awareness, DLP helps organizations maintain compliance, prevent data breaches, and ensure that confidential information is handled responsibly during daily operations. This proactive capability strengthens overall data governance and builds trust in secure digital collaboration.

Question 120: 

Which Microsoft 365 feature automatically revokes external file access after a set duration?

A) Sensitivity Labels with expiration policies
B) Conditional Access
C) DLP Policies
D) Microsoft Defender Antivirus

Answer: A

Explanation:

Sensitivity Labels with expiration policies in Microsoft 365 are a powerful data protection feature designed to help organizations control and safeguard sensitive information throughout its entire lifecycle. These labels allow administrators to classify, encrypt, and apply usage restrictions to files and emails while also specifying an expiration period for external access. Once the designated time expires, access to the shared content is automatically revoked, ensuring that sensitive information does not remain exposed indefinitely. This capability is especially valuable in collaborative environments where data is frequently shared with external partners, vendors, or contractors. By automatically expiring access, organizations reduce the risk of data leakage, minimize the window of exposure, and maintain compliance with regulatory and organizational data retention policies.

The expiration policy works by embedding encryption and rights management directly into the file. When a file is shared using a Sensitivity Label with an expiration rule, the external recipient’s permissions are granted for a limited duration. After the expiration date passes, the document’s encryption key no longer allows access to that user, even if the file remains in their possession. This ensures that sensitive documents—such as financial reports, legal contracts, or strategic plans—cannot be accessed after their relevance has endeD) Administrators can configure expiration durations in days, weeks, or months, depending on business needs or compliance requirements.

In addition to time-based access control, Sensitivity Labels can apply multiple layers of protection. They can enforce encryption using Azure Information Protection (AIP), restrict actions like copying, printing, forwarding, or saving local copies, and display visual markings such as headers, footers, or watermarks. These combined controls help maintain confidentiality, integrity, and accountability across the organization’s data landscape. Furthermore, Sensitivity Labels integrate seamlessly with Microsoft 365 applications such as Word, Excel, Outlook, SharePoint, and OneDrive, allowing users to classify and protect content directly within their workflows.

It is important to distinguish Sensitivity Labels with expiration policies from other Microsoft 365 security features. Conditional Access policies, for example, control access based on factors like user identity, device compliance, geographic location, or risk level. While they are effective for enforcing authentication and contextual access, they do not provide file-level expiration or encryption. Similarly, Data Loss Prevention (DLP) policies monitor and prevent the sharing of sensitive data based on content inspection and policy conditions, but they cannot automatically revoke access after a specified perioD) Microsoft Defender Antivirus, meanwhile, protects endpoints from malware and threats but does not control who can view or interact with sensitive files. Sensitivity Labels fill this critical gap by offering persistent, document-centric security that remains in effect regardless of where the file travels.

 

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