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These labels can be applied manually by users, automatically by administrators, or a combination of both, ensuring that the correct level of protection is in place for sensitive information. The SC-400 Microsoft Information Protection Administrator exam tests the ability to design, implement, and manage sensitivity labels within an organization.

Understanding Sensitivity Labels

Before diving into the creation of sensitivity labels, it is important to understand what they are and why they are crucial. Sensitivity labels are part of Microsoft’s information protection framework used to classify and protect documents and emails by applying labels. These labels can include encryption, access restrictions, and visual markings such as headers, footers, or watermarks.

Creating Sensitivity Labels

Creating sensitivity labels involves several steps which include planning, configuration, and testing before deployment. Here’s how to design and create them:

Step 1: Identify the Types of Sensitive Information

Begin by identifying the types of sensitive data that need protection. This could be financial data, personal information, intellectual property, or any other type of data that is considered sensitive.

Step 2: Define Protection Actions and Rules

Determine what protection actions need to happen when a label is applied—like encryption, content marking, or access restrictions. Also, define the rules for when and how labels should be applied. This might be based on the content, the context, or even manually by the user.

Step 3: Create the Label

In the Microsoft 365 compliance center, go to Solutions > Information Protection and click on “Create a label”. Name your label and provide a description. The name should be clear and reflect the level of sensitivity, for example, “Confidential”, “Internal”, or “Public”.

Step 4: Configure Label Settings

Configure the settings for your label. Decide if the label should apply encryption, content marking, and access restrictions. Here are some examples:

  • Encryption: Choose whether the document can be accessed only by certain people or groups within the organization.
  • Content Marking: Add watermarks, headers, or footers to documents.
  • Access Restrictions: Control which actions users can perform on documents, like editing, copying, or printing.

Step 5: Auto-labeling Policies

Auto-labeling is optional and uses rules and conditions to automatically apply labels to content. Set up conditions based on the presence of sensitive information, such as credit card numbers or social security numbers.

Step 6: Publish the Label

After creating the label and configuring its settings, publish the label to make it available for use. You can publish it to specific users, groups, or the entire organization.

Managing Sensitivity Labels

Once your sensitivity labels are created and published, they need to be managed and maintained. Here are some steps to manage them:

Review and Update Labels Regularly

Label definitions should be reviewed on a regular basis to ensure that they are still aligned with the organization’s policies and any regulatory changes.

Monitor Label Usage and Adoption

Use the reporting features within the compliance center to monitor how labels are being used across the organization. This helps in understanding if the labels are effective or if additional user training is needed.

Adjust Auto-labeling Policies as Needed

Based on the feedback and monitoring reports, auto-labeling policies might need adjustments to ensure that they are accurately identifying and classifying sensitive information.

Train Users

It’s crucial to train users on how to apply labels manually if this is part of your classification strategy. Users should be able to recognize the types of data that correspond to each label.

Implementing Sensitivity Labels Example

Let’s take an example of a finance department that handles sensitive data, such as financial reports and personal employee information. A possible set of labels for this department could be:

  • Public: Used for non-sensitive data that can be shared publicly.
  • Internal Only: Used for data meant only for internal company use.
  • Confidential: Used for sensitive data that should only be accessed by the finance department.

Below is a table summarizing potential settings for these labels:

Label Encryption Content Marking Access Restrictions Auto-labeling Conditions
Public No None None Based on content detection
Internal Only No Header “Internal” Prevent external sharing NA
Confidential Yes Watermark “Confidential” Access only to Finance Group Based on sensitive info types

Conclusion

Designing and creating sensitivity labels requires careful planning and understanding of an organization’s data protection needs. By following the steps outlined above, organizations can ensure that their sensitive information is properly classified and protected. The SC-400 exam ensures that information protection administrators are proficient in these tasks, enabling them to create a secure information environment for their organizations.

Practice Test with Explanation

(True/False) Sensitivity labels can be used to apply encryption to documents and emails.

  • A) True
  • B) False

Answer: A) True

Explanation: Sensitivity labels can be used to apply encryption to documents and emails, thereby protecting sensitive content regardless of where it’s stored or who it’s shared with.

(Multiple Select) Which of the following are capabilities of sensitivity labels?

  • A) Apply encryption
  • B) Enforce content marking such as watermarks
  • C) Restrict access to SharePoint Online sites
  • D) Automatically classify content

Answer: A) Apply encryption, B) Enforce content marking such as watermarks, D) Automatically classify content

Explanation: Sensitivity labels can apply encryption, enforce content marking, and automatically classify content. They do not restrict access to SharePoint Online sites; this would be managed by other features such as conditional access policies.

(Single Select) Who can create and manage sensitivity labels in Microsoft 365?

  • A) All users
  • B) Compliance administrators
  • C) Security administrators
  • D) Global administrators

Answer: D) Global administrators

Explanation: Global administrators, along with those assigned the roles of Compliance administrators or Security administrators, can create and manage sensitivity labels in Microsoft

(True/False) Sensitivity labels, once applied, cannot be changed or removed by users.

  • A) True
  • B) False

Answer: B) False

Explanation: Sensitivity labels can be designed to allow users to change or remove them, or to restrict this ability, depending on how the label policy is configured.

(Single Select) What must you publish to make sensitivity labels available to users?

  • A) A label policy
  • B) A DLP policy
  • C) An encryption policy
  • D) An archiving policy

Answer: A) A label policy

Explanation: To make sensitivity labels available to users, a label policy must be published which specifies how the labels should be distributed within the organization.

(True/False) Once a sensitivity label is published, it is immediately available for use without any need for additional configuration.

  • A) True
  • B) False

Answer: B) False

Explanation: Even after publishing a sensitivity label, there might be a replication delay before it becomes available. Additionally, client applications might require configuration or updates to use new labels.

(Multiple Select) Which client applications support sensitivity labeling?

  • A) Microsoft Teams
  • B) Adobe Acrobat Reader
  • C) Microsoft Excel
  • D) Notepad

Answer: A) Microsoft Teams, C) Microsoft Excel

Explanation: Microsoft Teams and Microsoft Office applications like Excel, Word, and PowerPoint support sensitivity labeling. Adobe Acrobat Reader and Notepad do not support it natively.

(True/False) Sensitivity labels can be applied automatically without user input based on content inspection.

  • A) True
  • B) False

Answer: A) True

Explanation: Sensitivity labels can be configured to automatically apply to content based on certain conditions or content inspection, without user intervention.

(Single Select) Which of the following can be used in conjunction with sensitivity labels for content marking?

  • A) Azure AD Identity Protection
  • B) Microsoft Defender for Endpoint
  • C) Azure Information Protection Unified Labeling Client
  • D) Office 365 Message Encryption

Answer: C) Azure Information Protection Unified Labeling Client

Explanation: The Azure Information Protection Unified Labeling Client can be used to apply content marking such as headers, footers, and watermarks in conjunction with sensitivity labels.

(True/False) Sensitivity labels can protect content in Microsoft 365, on-premises, and in third-party cloud services.

  • A) True
  • B) False

Answer: A) True

Explanation: Sensitivity labels can protect content across various locations including Microsoft 365, on-premises repositories, and supported third-party cloud services.

Interview Questions

What are sensitivity labels in Microsoft 365?

Sensitivity labels are a tool in Microsoft 365 that enable organizations to classify and protect sensitive data in emails, documents, and other content.

What are the benefits of using sensitivity labels?

The benefits of using sensitivity labels include improved data protection, better compliance, and more efficient data management.

What factors should an organization consider when designing sensitivity labels?

An organization should consider the types of sensitive data, the appropriate level of protection, label names and descriptions, label colors, and protection settings and actions when designing sensitivity labels.

How do you create sensitivity labels in Microsoft 365?

To create sensitivity labels in Microsoft 365, you need to sign in to the Microsoft 365 compliance center, navigate to the “Sensitivity labels” page, and follow the steps to create a new label.

How many sensitivity labels should an organization use?

An organization should aim to use as few sensitivity labels as possible to avoid confusion and mistakes.

How can an organization ensure that sensitivity labels are applied consistently?

An organization can ensure that sensitivity labels are applied consistently by providing clear guidance to users and testing the labels to ensure that they function as intended.

What are some best practices for sensitivity labels?

Best practices for sensitivity labels include limiting the number of labels, applying labels consistently, providing clear guidance to users, testing labels, and regularly reviewing and updating labels.

Can sensitivity labels be applied automatically?

Yes, sensitivity labels can be applied automatically using rules and conditions that are defined by the organization.

Can sensitivity labels be customized to meet specific organizational needs?

Yes, sensitivity labels can be customized to meet the specific needs and requirements of an organization.

What types of protection settings can be associated with sensitivity labels?

Protection settings that can be associated with sensitivity labels include encryption, data loss prevention policies, and access restrictions.

What types of actions can be associated with sensitivity labels?

Actions that can be associated with sensitivity labels include blocking email forwarding, disabling printing, and preventing editing.

How can an organization test sensitivity labels?

An organization can test sensitivity labels by applying them to test content and ensuring that the labels function as intended.

What is the importance of regularly reviewing and updating sensitivity labels?

Regularly reviewing and updating sensitivity labels is important to ensure that they meet the changing needs and requirements of the organization.

Can sensitivity labels be applied retroactively to previously created content?

Yes, sensitivity labels can be applied retroactively to previously created content.

Can sensitivity labels be used in conjunction with other data protection tools in Microsoft 365?

Yes, sensitivity labels can be used in conjunction with other data protection tools in Microsoft 365, such as data loss prevention policies and encryption.

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Marina Carmona
1 year ago

Great overview on creating sensitivity labels for SC-400. It’s really useful for preparing for the exam.

Cléa Mercier
8 months ago

I keep getting stuck on defining policies after creating labels. Does anyone have a clear example?

Ülkü Kıraç
1 year ago

Thanks for this post!

Albert Arias
1 year ago

Can sensitivity labels be applied to emails automatically? I’m preparing for this specific part of the SC-400 exam.

Ana María Regalado
1 year ago

In my experience, focusing on sensitivity labels is critical for managing data protection seamlessly.

Mona Fleury
1 year ago

How are you handling user training for sensitivity labels? Users tend to get confused.

Stéphanie Ijpma
11 months ago

I appreciate the blog post. It’s quite insightful!

Jeannette Dickmann
1 year ago

Is there a way to audit who applied which sensitivity labels on documents?

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