Microsoft SC-401 Administering Information Security in Microsoft 365 Exam Practice Test

The goal is to automatically label documents in Site1 that contain credit card numbers. To achieve this, we need a sensitivity label with an auto-labeling policy based on a sensitive info type that detects credit card numbers.

Step 1: Create a Sensitive Info Type

● A sensitive info type is needed to detect credit card numbers in documents.

● Microsoft Purview includes built-in sensitive info types for credit card numbers, but we can also create a custom one if necessary.

Step 2: Create a Sensitivity Label

● A sensitivity label is required to classify and protect documents containing sensitive information.

● This label can apply encryption, watermarking, or access controls to credit card data.

Step 3: Create an Auto-Labeling Policy

● An auto-labeling policy ensures that the sensitivity label is applied automatically when credit card numbers are detected in Site1.

● This policy is configured to scan files and automatically apply the correct sensitivity label.

Understanding DLP Policy Impact on File Access

The DLP policy (DLPpolicy1) applies to Site2 and restricts access when:

● Content contains SWIFT Codes.

● Instance count is 2 or more.

File Analysis (Based on SWIFT Codes Count)

Files that remain accessible (not restricted by DLP):

● File1.docx (Contains only 1 SWIFT Code → Below restriction threshold)

User access after DLP policy is applied:

User1 (Site Owner):

● Has higher privileges and can override DLP restrictions (through admin intervention).

● Can access 2 files (File1.docx + override access to another file).

User2 (Site Visitor):

● Has read-only access but DLP blocks access to restricted files.

● Can only access 1 file (File1.docx), since all others are restricted.

Understanding Site4's Retention Policies:

● Site4RetentionPolicy1 deletes items older than 2 years from creation. If a file was created on January 1, 2021, it would be deleted after January 1, 2023.

● Site4RetentionPolicy2 retains files for 4 years from creation. If a file was created on January 1, 2021, it will be kept until January 1, 2025, but not deleted after that (policy states "Do nothing").

Statement 1 - Yes, because Site4RetentionPolicy2 ensures files are retained for 4 years.

Statement 2 - Yes, because Site4RetentionPolicy2 retains the file for 4 years (until January 1, 2025).

Statement 3 - No, because retention is only for 4 years (until January 1, 2025). After that, the policy does "nothing," meaning the file is no longer recoverable after that period.

To meet the requirement that all administrative users must be able to create Microsoft 365 sensitivity labels, we need to assign the Sensitivity Label Administrator role to the correct users.

Sensitivity Label Administrator Role Responsibilities

This role allows users to:

● Create and manage sensitivity labels in Microsoft Purview.

● Publish and configure auto-labeling policies.

● Modify label encryption and content marking settings.

Review of Admin Roles from the Table:

Users that must be assigned the Sensitivity Label Administrator role:

● Admin2 (Compliance Data Administrator)

● Admin3 (Compliance Administrator)

● Admin1 (Global Reader) (should be assigned this role to fulfill the requirement that all admins can create labels).

The requirement states that all Microsoft 365 data for users must be retained for at least one year. In Microsoft 365, retention policies must be configured for each type of data storage.

Step 1: Identifying Where Data is Stored

From the case study, users store data in the following locations:

● SharePoint Online sites

● OneDrive accounts

● Exchange email

● Exchange public folders

● Teams chats

● Teams channel messages

Since these locations fall under two broad categories:

● Microsoft Exchange data (Emails, Public folders)

● SharePoint, OneDrive, and Teams data

Step 2: Required Retention Policies

1️. A single retention policy can cover:

● SharePoint Online

● OneDrive

● Microsoft Teams

2. A second retention policy is required for:

● Exchange (Emails & Public Folders)

Thus, the minimum number of retention policies required to meet the requirement is 2.

Microsoft 365 retention policies can be applied broadly across multiple services with just two policies:

● One for Exchange & Public Folders

● One for SharePoint, OneDrive, and Teams

There's no need for separate policies for each individual workload unless different retention durations are required, which is not stated in the requirement.

To detect and protect confidential documents, we need a custom rule to identify project codes that start with 999 (since they are classified as confidential).

Box 1: A Sensitive Info Type (SIT) allows Microsoft Purview DLP policies to recognize structured data (e.g., project codes). DLP policies require a sensitive info type to detect content based on patterns, keywords, or dictionary terms. A sensitivity label alone does not define detection logic—it is used for classification and protection after content is identified.

Box 2: Since project codes follow a structured 10-digit pattern, we should use a Regular Expression (Regex) to match project codes that start with 999.

Example Regex pattern:

999\d{7}

This pattern detects a 10-digit number starting with "999".

The Set-AdminAuditLogConfig -AdminAuditLogEnabled $true -AdminAuditLogCmdlets *Mailbox* command is incorrect. This enables admin audit logging, which tracks changes to mailbox configurations (e.g., mailbox settings updates), not user activity inside the mailbox.

Let’s analyze each scenario based on the given retention policies and Microsoft 365 documentation.

???? Policies Recap

Policy1

Teams channel messages → All Teams → Retain 7 years → Delete automatically.

Teams chats → User1 → Retain 7 years → Delete automatically.

Policy2

Teams channel messages → Team1 → Retain 5 years → Delete automatically.

Teams chats → User2 → Retain 5 years → Delete automatically.

???? Reference: Retention policies in Microsoft Teams

???? Statement 1: The message edited by User1 will be deleted after five years.

Location = Team1 channel.

Policy1 applies (7 years for all Teams).

Policy2 applies (5 years for Team1).

Conflict rule: For retention, the longest duration wins.

Therefore, the message stays 7 years, not 5.

✅ Answer: NO

???? Statement 2: User1 can see the message sent by User2 for up to seven years.

Location = Private 1:1 chat (User2 → User1).

For User1’s mailbox: Policy1 applies (7 years).

For User2’s mailbox: Policy2 applies (5 years).

Retention in Teams chats is per-user, so each participant may have different durations.

For User1, the retention is 7 years.

✅ Answer: YES

???? Statement 3: The message deleted by User1 will be moved to the SubstrateHolds folder.

Location = Team2 channel.

User1 deletes the message, but retention policy (Policy1) applies (7 years).

Retention overrides user deletion: message is moved to the SubstrateHolds folder in the hidden mailbox for preservation.

???? Reference: How retention works with SubstrateHolds

✅ Answer: YES

Comprehensive Detailed Explanation with References

When multiple advanced DLP rules match content, Microsoft 365 DLP evaluates based on:

Rule priority

Lower number = higher priority (0 highest).

Among Rule2 (priority 1), Rule3 (priority 2), and Rule4 (priority 3), Rule2 has the highest priority.

Conflict resolution (single vs multiple rules applied)

By default, only the highest-priority rule applies if multiple rules match. → That’s why in the first dropdown, the correct answer is Only Rule2 takes effect.

However, you can configure advanced DLP to allow multiple matching rules to take effect simultaneously. If this setting is enabled, then Rule2, Rule3, and Rule4 all apply. → That’s why in the second dropdown, the correct answer is Rule2, Rule3, and Rule4 take effect.

AutoApply1 is an auto-labeling policy that applies RLabel1 to Group1. Auto-labeling policies can apply retention labels across group mailboxes, SharePoint Online sites, and Teams channel messages if they are configured for group resources.

Retention1 is a retention policy applied to Group2. Retention policies for Microsoft 365 groups apply to all group resources, including group mailboxes, SharePoint Online teams sites, and Teams channel messages.

Since both AutoApply1 and Retention1 affect entire groups, they apply to all associated resources: group mailbox, SharePoint Online teams site, and Teams channel messages.

Retention policy tags (MRM) for Exchange Online are applied by the Managed Folder Assistant (MFA). To apply a newly created Exchange retention policy to mailbox items immediately, you manually invoke MFA with Start-ManagedFolderAssistant for the mailbox or set of mailboxes. Creating DLP policies or label policies in Purview does not accelerate MRM processing.

Step 1 – Scenario

You need to create a Microsoft Purview Insider Risk Management policy that detects data theft from SharePoint Online by users who have submitted their resignation or are close to termination.

Step 2 – Understanding how insider risk management works

Insider Risk policies rely on signals that identify potential risk events. These signals include:

HR data (resignation dates, termination notices).

Office activity indicators (file downloads, sharing, printing).

Device indicators (file copy to USB, printing).

Physical access (badge-in/badge-out).

Step 3 – Why HR signals are required here

To detect resignation or termination risk events, Microsoft Purview must first know which users are flagged by HR.

This is done by configuring an HR data connector, which imports employee termination/resignation data from HR systems (Workday, SAP SuccessFactors, or CSV import).

Without this HR data connector, Purview has no knowledge of employees’ resignation or termination timelines, and the policy cannot function.

Step 4 – Why not the other options

B. Configure Office indicators: These detect risky activity (downloads, sharing), but cannot determine resignation status. They are used after HR signals identify at-risk users.

C. Configure a Physical badging connector: Useful for detecting anomalous physical access, but irrelevant to resignation-based detection.

D. Onboard devices to Microsoft Defender for Endpoint: Required for device activity signals, not for HR resignation detection.

Step 5 – Microsoft Reference

Microsoft documentation states: “To use HR resignation/termination triggers, you must configure an HR connector to import resignation and termination data into insider risk management.”

Microsoft 365 Copilot can only process (summarize, answer questions about) a labeled file when the user has the Copy and extract content (EXTRACT) usage right granted by the applied sensitivity label.

From the table of labels:

Label1 → VIEW only (no EXTRACT) → Copilot cannot summarize.

Label2 → VIEW and EXTRACT granted → Copilot can summarize.

Label3 → VIEW and EXPORT (no EXTRACT) → Copilot cannot summarize.

Since File2 is labeled Label2, it’s the only file for which User1 has the required EXTRACT permission, so it’s the only file Copilot can summarize.

To allow users to apply retention labels to individual documents in Microsoft SharePoint libraries, you need to create a retention label and publish the label.

In Microsoft Purview, retention labels define how long content should be retained or deleted. You must first create a label that specifies the retention rules. After creating the label, you must publish it so that it becomes available for users in SharePoint document libraries. Once published, users can manually apply the retention label to individual documents.

Insider risk management policies in Microsoft Purview target users based on priority user groups.

If you want to monitor a specific project team, you must first define those users in a priority user group so that policies affect only them.

This approach:

Minimizes the impact on users not part of the project.

Reduces administrative effort since you don’t need to manage multiple security groups in Entra ID.

Step 1 – Scenario

Tenant domain = contoso.com

Encryption method = Microsoft Purview Advanced Message Encryption (AME) using branded, link-based emails.

Recipients:

Recipient1 → Contoso internal user (same tenant).

Recipient2 → External Microsoft 365 user (Fabrikam).

Recipient3 → Outlook.com consumer email.

Recipient4 → Gmail.com consumer email.

The question asks: For which recipients can User1 revoke the emails?

Step 2 – Revocation in Advanced Message Encryption

Microsoft Purview AME allows senders to:

Revoke sent encrypted emails.

Revoke applies to all recipients who receive a link-based branded encrypted message.

When revoked, the secure message link no longer works, regardless of whether the recipient is internal, external Microsoft 365, Outlook.com, Gmail, or another email provider.

This differs from traditional RMS-based encryption where revocation is tenant-specific. In AME, the revocation is possible because the recipient must open the message through a secure browser portal (Office 365 Message Encryption portal).

Step 3 – Evaluate each recipient

Recipient1 (contoso.com, internal) → Yes, message can be revoked.

Recipient2 (fabrikam.onmicrosoft.com, external Microsoft 365) → Yes, message can be revoked because AME link enforcement works across tenants.

Recipient3 (outlook.com, consumer) → Yes, message can be revoked, they use the secure OME portal.

Recipient4 (gmail.com, consumer) → Yes, message can be revoked, they also use the secure OME portal.

Step 4 – Microsoft Reference

From Microsoft Docs:

“With Advanced Message Encryption, admins can configure branding and revocation for encrypted email messages. Revocation applies to encrypted emails sent to both internal and external recipients, including those using Outlook.com, Gmail.com, and other email services.”

In Defender for Cloud Apps file policies, Access level is the filter used to detect how a file is exposed (e.g., Public on the internet, External, Internal, Private). Choosing Access level = External matches files that are shared with users outside your organization—exactly the “shared externally” condition.

Ref: Microsoft Defender for Cloud Apps – Create/Use file policies (File filters: Access level), Microsoft Learn.

See: Microsoft Defender for Cloud Apps > Policies > File policies documentation describing file filters including Access level and its values (Public, External, Internal, Private).

To target files that carry an MIP/AIP classification such as Internal Only, you use the Sensitivity label file filter. Defender for Cloud Apps ingests Microsoft Purview Information Protection labels and lets you build file policies that trigger when a specific label is applied.

Ref: Integrate Microsoft Information Protection with Microsoft Defender for Cloud Apps and File policies – Sensitivity label filter, Microsoft Learn.

These docs explain that MCAS can filter and govern files by Sensitivity label and apply governance based on labels such as Internal Only, Confidential, etc.

Why not the other options?

Collaborators filters by specific users/domains; it’s useful to find files shared with a particular external user but not for the generic “shared externally” condition.

Matched policy is for files already flagged by another policy/DLP engine and does not detect “Internal Only” labeling by itself.

To ensure that encrypted email messages sent to external recipients can be revoked or expire within seven days, you need to configure a sensitivity label with encryption settings in Microsoft Purview Information Protection. A sensitivity label allows you to encrypt emails and documents, set expiration policies (e.g., emails expire after 7 days), and enable email revocation

How to configure it?

● Go to Microsoft Purview compliance portal → Information Protection

● Create a sensitivity label

● Enable encryption and configure the content expiration policy

● Publish the label to users

Trainable classifiers in Microsoft Purview learn from sample documents. When the initial results are unsatisfactory, retraining is done by reviewing and reclassifying items through Content explorer under the Data classification section of the Purview compliance portal. This allows you to give feedback by marking documents as “relevant” or “not relevant” to improve classifier accuracy.

The other options do not support retraining:

Labels from Information protection → Used to configure and manage sensitivity labels, not train classifiers.

Labels from Information governance → Used for retention labels, not classifiers.

Content search → Used for eDiscovery and searching content, not classifier training.

The issue: Users cannot upload documents with U.S. passport numbers to a legitimate travel management website because Endpoint DLP is blocking it.

Solution: Configure Service domains in Endpoint DLP → this allows defining specific trusted domains where uploads of sensitive information are permitted while still blocking uploads to other, non-approved domains.

Why not others?

Unallowed browsers: Restricts/blocklists browsers, not the issue here.

File path exclusions: Excludes local folders/paths from monitoring, irrelevant to web uploads.

Unallowed apps: Restricts desktop apps, not browser-based sites.

Policy1 monitors printing of files by users that submitted their resignation. In Insider Risk Management, the Data theft by departing users template is designed for users marked as leaving and watches for exfiltration indicators such as printing, USB copy, or uploads to cloud services.

Ref: Microsoft Purview Insider Risk Management – Policy templates: Data theft by departing users (monitors exfiltration activities for departing users).

Policy2 monitors accidental sharing of data outside the organization by users in a priority user group. The template for this is Data leaks by priority users, which targets a defined priority user group and focuses on oversharing/leak indicators (external sharing, email to external, cloud uploads, etc.).

Ref: Insider Risk Management – Data leaks by priority users template.

Policy3 monitors downloading of files from SharePoint Online to personal cloud storage services. This is a classic data leak/exfiltration scenario without a departing/priority qualifier, so the general Data leaks template is appropriate (covers uploads to personal cloud services and other exfiltration vectors).

Ref: Insider Risk Management – Data leaks template (monitors exfiltration such as uploads to personal cloud services).

These mappings align with Microsoft’s template purposes: Departing user exfiltration → Data theft by departing users; Priority users oversharing → Data leaks by priority users; Generic exfiltration → Data leaks.

You need to define a custom sensitive information type that recognizes the unique 13-digit identifier format for customer records. Microsoft Purview DLP policies use these types to identify and protect sensitive data.

A Data Loss Prevention (DLP) policy is required to enforce the rules. It will allow emails with a single identifier but trigger an approval workflow when two or more identifiers are detected.

Step 1 – Label publishing and scope

The sensitivity label Label1 is published to User1 and Group1.

User1 → Directly included in label publishing.

User2 → Member of Group1, so also included indirectly.

This means both User1 and User2 are eligible to use Label1.

Step 2 – File vs Folder labeling with the Information Protection client

The Microsoft Purview Information Protection (AIP unified labeling) client can apply labels to files such as .docx, .png, .pdf, etc.

It cannot label folders directly. Labels are applied to items (files and emails), not folders.