SC-401 Microsoft Administering Information Security in Microsoft 365 Free Practice Exam Questions (2025 Updated)

To ensure that Microsoft Purview Insider Risk Management can detect file deletions, USB copies, and print actions on sensitive information, you must onboard the Windows 11 devices to Microsoft Purview.

Device onboarding enables endpoint activity monitoring, allowing Purview to track and log user activities such as file deletions, USB transfers, and printing of sensitive files. Once onboarded, the Insider Risk Management policy can analyze these activities and generate risk alerts when sensitive information types (SITs) are involved.

To create a keyword dictionary for a sensitive information type in Microsoft Purview Data Loss Prevention (DLP), you must use a plain text (.txt) file where each keyword is on a separate line.

Format Example (TXT file):

confidential

sensitive

classified

top secret

This format is simple, efficient, and directly compatible with Microsoft 365 DLP policies for keyword dictionaries.

How to use the keyword dictionary?

● Create a text file with one keyword per line.

● Upload it to Microsoft Purview under Data Classification > Sensitive Info Types.

● Use the dictionary in a DLP policy to identify and protect sensitive information.

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.

To ensure User1 can perform insider risk management tasks only for the users and devices in Office1, the first step is to create an administrative unit in Microsoft Entra ID (formerly Azure AD).

Administrative units allow you to scope permissions to specific users, devices, and locations. By creating an administrative unit for Office1 and assigning User1 to the Insider Risk Management Admins role group within that unit, User1 will only have access to users and devices in Office1.

To meet the requirements, you need one DLP policy with two separate DLP rules to handle the different conditions:

1. First DLP Rule (For Group1 Members): If the user is a member of Group1 and attempts to copy a file with sensitive data to a USB storage device. Allow the file copy but log the event in the audit log.

2. Second DLP Rule (For All Other Users): If any user who is NOT in Group1 attempts to copy a file with sensitive data to a USB storage device. Block the file transfer.

Statement 1 - No. User1 is included in JIT protection. File1.docx is on Device1, which is onboarded to Microsoft Defender. However, File1.docx has not been evaluated for file classification, meaning JIT cannot enforce protection on it. If User2 signs in to Device2 and attempts to attach File2.pdf to an email, JIT will block the action.

Statement 2 - No. User2 is not configured for JIT protection (JIT does not apply to them). File2.pdf has been evaluated for classification, but since User2 is not included in JIT protection, no blocking occurs. If User3 attempts to copy File3.xlsx to a network share, JIT will generate an audit event.

Statement 3 - No. User3 is included in JIT protection. However, Device3 is not onboarded to Microsoft Defender, meaning JIT protection cannot enforce actions on it. File3.xlsx has not been evaluated, so even if the device were onboarded, JIT would not have classification data to act upon.

The Set-MailboxFolderPermission -Identity "User1" -User User1@contoso.com -AccessRights Owner command is incorrect. This assigns folder permissions but does not enable auditing. It does not track who accessed the mailbox or deleted emails.

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

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:

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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).

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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.

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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)

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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:

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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.

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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.

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.

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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".