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MS-900 · Question #322

A company deploys Microsoft 365. The company plans to use sensitivity labels. You need to identify the capabilities of sensitivity labels. What are three capabilities of sensitivity labels? Each…

The correct answer is A. Sensitivity labels can be customized. D. Sensitivity labels can be used to encrypt documents. E. Sensitivity labels can automatically be applied to documents. Sensitivity Labels in Microsoft 365 Sensitivity labels are highly flexible tools that can be customized (A) to reflect an organization's classification needs (e.g., Public, Confidential, Highly Confidential), encrypt documents (D) to restrict access and protect content from…

Submitted by zhang_li· Mar 5, 2026Describe security, compliance, privacy, and trust in Microsoft 365

Question

A company deploys Microsoft 365. The company plans to use sensitivity labels. You need to identify the capabilities of sensitivity labels. What are three capabilities of sensitivity labels? Each correct answer presents part of the solution. NOTE: Each correct selection is worth one point.

Options

  • ASensitivity labels can be customized.
  • BSensitivity labels can ensure that a document is retained indefinitely.
  • CSensitivity labels can trigger disposition reviews.
  • DSensitivity labels can be used to encrypt documents.
  • ESensitivity labels can automatically be applied to documents.

How the community answered

(54 responses)
  • A
    87% (47)
  • B
    4% (2)
  • C
    9% (5)

Explanation

Sensitivity Labels in Microsoft 365

Sensitivity labels are highly flexible tools that can be customized (A) to reflect an organization's classification needs (e.g., Public, Confidential, Highly Confidential), encrypt documents (D) to restrict access and protect content from unauthorized users, and automatically applied (E) to documents based on conditions like content matching sensitive information types or trainable classifiers.

Why B and C are incorrect: Indefinite retention (B) and disposition reviews (C) are capabilities of retention labels, not sensitivity labels. These two label types are often confused - retention labels govern how long content is kept, while sensitivity labels govern how content is protected. Sensitivity labels do not manage the lifecycle or scheduling of content review.

Memory Tip: Think of sensitivity labels as the "shield" - they customize, encrypt, and auto-apply protection to content. Think of retention labels as the "clock" - they control time-based actions like retention periods and disposition reviews. If the question mentions time or deletion, think retention labels, not sensitivity labels.

Topics

#Sensitivity labels#Data protection#Compliance#Microsoft 365 security

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