SC-900 Microsoft Security Compliance and Identity Fundamentals Free Practice Exam Questions (2026 Updated)

Microsoft Entra ID Protection is designed to detect and respond to identity compromise by calculating user risk and sign-in risk and surfacing risk detections such as “leaked credentials,” “anonymous IP address,” “impossible travel,” and related signals. Microsoft explains that Identity Protection “uses adaptive machine learning and threat intelligence to detect risky users and risky sign-ins and assigns each a risk level of Low, Medium, or High.” These detections include “Leaked credentials (found on public or dark-web lists)”, confirming that Identity Protection can detect when user credentials have been exposed.

ID Protection is integrated with Conditional Access to take policy-driven actions: “Risk-based Conditional Access policies let you require multi-factor authentication (MFA), block access, or require password change when a user or sign-in risk level is met.” The built-in policies include User risk policy and Sign-in risk policy, which can automatically enforce MFA or password reset when the configured risk threshold is reached.

However, Identity Protection does not manage Azure AD group membership. There is no capability to add users to groups based on risk level; group membership changes are outside the scope of Identity Protection’s controls. Instead, remediation is applied through Conditional Access or password reset policies driven by the calculated risk.

Therefore: adding users to groups based on risk (No); detecting leaked credentials (Yes); invoking MFA based on risk via Conditional Access (Yes).

Microsoft’s shared-responsibility model states that the cloud provider secures the cloud, while the customer secures what they put in the cloud. The Azure Security documentation explains: “Regardless of the type of deployment, you always retain responsibility for your data, endpoints, accounts, and access management.” This applies to IaaS, PaaS, and SaaS, so statement 3 is Yes because the organization is always accountable for the security of information and data.

For SaaS, Microsoft describes that customers “don’t manage or control the underlying cloud infrastructure—including network, servers, operating systems, or even individual application capabilities” and that the provider handles service maintenance and updates. In SaaS, tasks like patching or applying service packs to the application code are owned by the service provider, while the customer focuses on data, identity, and access. Therefore, statement 1 is No.

For IaaS, Microsoft notes the provider manages the physical estate: “Microsoft is responsible for the physical hosts, network, and datacenter facilities,” while the customer configures and secures the guest OS, applications, and network controls within their subscription. Thus, managing the physical network is the cloud provider’s duty, making statement 2 Yes.

These SCI principles are foundational to Microsoft Learn/Docs guidance on Azure’s shared responsibility: provider—“security OF the cloud”; customer—“security IN the cloud,” with data protection always remaining the customer’s responsibility.

In Microsoft Purview Compliance Manager, the built-in Compliance score and assessments are designed for ongoing, risk-based monitoring of your organization’s compliance posture. Microsoft’s SCI materials describe Compliance Manager as a solution that “helps you track, improve, and demonstrate your compliance posture” by mapping regulations and standards to improvement actions and assessments. The experience is not a one-time or periodic snapshot; it is intended to be continuous. As you implement controls, provide evidence, or when automated tests record results, “your score is updated as you complete actions,” reflecting current progress toward data protection and regulatory requirements.

Assessments in Compliance Manager persist over time and are maintained through continuous evaluation: actions can be automatically tested when supported (for example, configuration-based controls in Microsoft 365) or manually assessed on an ongoing basis by compliance teams. This design enables organizations to prioritize and remediate issues as they arise, rather than waiting for monthly or quarterly reviews. Because of this continuous scoring and reassessment model, Compliance Manager assesses compliance data continually for an organization, providing near real-time insight into control effectiveness and residual risk across standards such as GDPR, ISO 27001, and NIST frameworks.

Azure DDoS Protection Standard is a platform-native service designed to mitigate distributed denial of service attacks against Azure-hosted workloads that expose public IP addresses. Microsoft’s guidance explains that DDoS Protection Standard is “enabled on a virtual network” and, once enabled, “automatically protects resources within the virtual network with public IP addresses” (for example, Application Gateway, Azure Load Balancer, and virtual machines). The service is “tuned to the traffic patterns of the protected resources” and provides adaptive real-time mitigation with telemetry and attack analytics.

Critically, the scope of enablement is at the virtual network (VNet) level, not at the resource group level, and it does not apply to Azure Active Directory (Microsoft Entra ID) users or applications, which are identity services rather than network resources. Microsoft’s materials emphasize that by associating a DDoS protection plan to a VNet, you “protect all public IPs assigned to resources in that VNet”, giving layered protection alongside Azure’s always-on basic protections.

Therefore, the only option that correctly completes the sentence is virtual networks, because Azure DDoS Protection Standard is configured on, and provides coverage for, resources inside a VNet that have public endpoints—exactly matching Microsoft’s SCI/Azure security documentation.

In Microsoft Purview Compliance Manager, improvement actions are categorized by control type to reflect how they reduce risk and contribute to your compliance score. Microsoft’s SCI guidance explains that preventative controls are safeguards that “prevent a security or compliance incident from occurring by enforcing protections in advance (for example, enforcing encryption of data at rest and in transit, access restrictions, and configuration baselines).” This directly aligns with the task “Use encryption to protect data at rest”, which is a classic prevention mechanism intended to stop unauthorized disclosure before it can happen.

The guidance also states that detective controls are measures that “identify, log, and surface anomalous or non-compliant activities so they can be investigated and addressed (for example, continuous monitoring, alerting, audit logging, and analytics).” This maps to “Actively monitor systems to identify irregularities that might represent risks”, because the goal is to detect suspicious behavior or drift as it occurs.

By comparison, corrective controls are used to “remediate issues and restore a desired state after a problem is discovered (for example, patching, incident response, or configuration correction).” No corrective action is described in the two listed tasks, so Corrective is not selected. This mapping reflects how Compliance Manager classifies actions that contribute points to the compliance score based on their risk-reducing impact.

In Microsoft Entra Conditional Access, policy evaluation occurs after the user successfully completes first-factor authentication (for example, username + password or Windows Hello for Business key). Microsoft Learn explains that Conditional Access “is the tool used by Azure AD to bring signals together, make decisions, and enforce organizational policies” and that it’s applied “after the first-factor authentication is completed.” Once primary authentication succeeds, Conditional Access evaluates signals like user, device state, location, risk (from Identity Protection), and application, and then enforces controls such as requiring MFA, blocking access, or applying session controls.

This design ensures Conditional Access does not replace primary authentication and is not enforced before or during the initial credential verification. Instead, it adds a second policy decision point that can demand stronger proof (e.g., MFA), restrict access paths, or limit sessions. Therefore, “after” is correct, while “before,” “during,” or “instead of” first-factor authentication are incorrect because Conditional Access relies on the initial sign-in to collect the necessary signals and then applies the configured access decisions and protections.

Endpoint data loss prevention (Endpoint DLP), a feature in Microsoft Purview, supports Windows 10 and 11 and now also supports macOS for core DLP capabilities. It allows organizations to monitor and restrict actions like copying sensitive files to USBs, printing, or uploading to unapproved cloud services.

SCI Extract: " Endpoint DLP extends Microsoft Purview Data Loss Prevention to Windows 10, Windows 11, and macOS devices, allowing for monitoring and control of sensitive data usage at the endpoint. "

Other platforms like Linux, iOS, and Android are not currently supported for Endpoint DLP

Microsoft Purview Compliance Manager is designed to give organizations a continuous view of their compliance posture. In Microsoft’s Security, Compliance, and Identity guidance, Compliance Manager is described as a capability that assesses your compliance posture against regulatory standards and data protection baselines and updates the compliance score as you implement or fail controls. The platform aggregates signals from assessments, controls, and improvement actions, then recalculates your compliance score as evidence is collected and actions are marked complete or tested. Because these evaluations are tied to live improvement actions and mapped controls (such as access, data protection, and governance controls), your organization’s status isn’t limited to a fixed reporting cycle; rather, it reflects ongoing progress and gaps across supported regulations and standards.

SCI study materials also emphasize that the score is not a one-time audit: it’s a running indicator of risk reduction and control implementation. As you address recommendations, add or update evidence, or connect automated tests where available, the score and related dashboards refresh to show the latest compliance state. This makes Compliance Manager suitable for continuous assessment, enabling organizations to monitor posture, prioritize work, and demonstrate incremental improvements over time—hence, it assesses compliance data continually for an organization.

Multi-factor authentication is a process where a user is prompted during the sign-in process for an additional form of identification, such as to enter a code on their cellphone or to provide a fingerprint scan.

Microsoft sets out clear privacy principles for Microsoft 365 and Microsoft cloud services. In Microsoft’s privacy commitments, Microsoft states that customers control their data: “You control your data.” Microsoft also pledges transparency about data practices: “We are transparent about data collection and use.” These two commitments are among the core privacy principles articulated across Microsoft 365 privacy and Microsoft Purview documentation, which emphasize customer choice, clear explanations of data processing, and admin capabilities to access, export, and delete data. Additional Microsoft privacy principles often listed alongside these include security of your data, strong legal protections, no content-based targeting, and benefits to you, but the key point for this question is that Control and Transparency are explicitly called out as privacy principles.

By contrast, shared responsibility is not a privacy principle; it is a cloud security model used in Azure/Microsoft cloud guidance. That model explains that security is a shared responsibility between Microsoft (for the cloud infrastructure) and the customer (for their data, identities, endpoints, and configurations). It describes how duties are divided for protecting services and workloads, not a privacy promise to end users. Therefore, the correct selections are Yes for Control and Transparency, and No for Shared responsibility.

Microsoft Entra ID Identity Protection is a risk-based conditional access capability that “automates the detection and remediation of identity-based risks” and enables admins to investigate risky users and sign-ins. SCI guidance explains that Identity Protection evaluates signals such as user risk and sign-in risk, raises risk detections, and can automatically remediate by enforcing actions like password reset or blocking access via risk-based policies. The portal provides rich investigation experiences for risky users, risky sign-ins, and risk detections, allowing security teams to review evidence and confirm/dismiss risks. In addition, identity risk data can be exported through Azure Monitor/diagnostic settings and integrated with SIEM/SOAR tools, enabling “export of risk detections and security alerts to third-party solutions” for correlation and response. Tasks such as configuring external access for partner organizations are handled by B2B collaboration features, and creating/assigning sensitivity labels belongs to Microsoft Purview Information Protection—not Identity Protection. Therefore, the tasks Identity Protection supports are: export risk detection (B), automate detection and remediation of identity-based risks (C), and investigate risks related to user authentication (D).

For Azure data services such as Azure SQL Managed Instance, Microsoft provides threat detection and protection through Microsoft Defender for Cloud (via Microsoft Defender for SQL). Microsoft documentation states that Defender for Cloud “provides advanced threat protection for your SQL resources,” including Azure SQL Database and Azure SQL Managed Instance, by “continuously monitoring for anomalous activities and potential SQL injection, brute force, and exploitation attempts.” When enabled, the plan “generates security alerts when suspicious activities are detected,” and these alerts can be surfaced in Defender for Cloud, forwarded to Microsoft Sentinel, or integrated with workflows for response. Microsoft Secure Score is a security posture metric, application security groups are for network segmentation in Azure, and Azure Bastion provides secure RDP/SSH over TLS—none of these deliver database-specific threat detection. Therefore, to provide threat detection for Azure SQL Managed Instance, you use Microsoft Defender for Cloud (Defender for SQL).

Security defaults make it easy to protect your organization with the following preconfigured security settings:

Requiring all users to register for Azure AD Multi-Factor Authentication.

Requiring administrators to do multi-factor authentication.

Blocking legacy authentication protocols.

Requiring users to do multi-factor authentication when necessary.

Protecting privileged activities like access to the Azure portal.

In Microsoft’s Security, Compliance, and Identity learning content for Microsoft Defender for Cloud, the service is described as providing ongoing posture management and threat protection. The official description states that Defender for Cloud “continuously assesses your resources to identify security misconfigurations and weaknesses” and “continuously discovers and evaluates resources” across your subscriptions. The recommendations and secure-score updates are produced as the platform “continuously analyzes your environment using security policies and analytics,” surfacing issues the moment they’re detected and mapping them to remediation guidance. This continuous assessment model underpins Defender for Cloud’s cloud security posture management (CSPM) capability and ensures that newly created or modified resources are evaluated without waiting for a scheduled job. By design, there is no fixed interval (such as hourly, every 15 minutes, or daily) required to trigger assessments—policy-driven evaluation and data collection run as changes occur and signals are received. Therefore, the sentence “Microsoft Defender for Cloud assesses Azure resources ____ for security issues” is correctly completed with continuously, reflecting Microsoft’s emphasis on persistent, real-time security posture evaluation rather than periodic scans.

In Microsoft’s hybrid identity model, organizations keep their authoritative identities in Active Directory Domain Services (AD DS) and surface those identities in Microsoft Entra ID (Azure AD). Microsoft guidance explains that hybrid identity is implemented by synchronizing on-premises directory objects (users, groups, and selected attributes) into Azure AD using Azure AD Connect or Cloud Sync. Azure AD Connect is explicitly documented as the Microsoft tool that establishes and maintains synchronization between AD DS and Azure AD and is therefore used to implement hybrid identity—hence statement 1 is Yes. Hybrid identity does not require two Microsoft 365 tenants; the standard design is one Azure AD tenant connected to one or more on-premises AD forests, so statement 2 is No. For users to authenticate to Microsoft cloud resources with their on-premises identity, Azure AD must have a corresponding cloud identity object, which is achieved by directory synchronization; sign-in can then be handled by cloud authentication (Password Hash Synchronization or Pass-through Authentication) or by federation (e.g., AD FS). Because these sign-in options depend on synchronized identities being present in Azure AD, statement 3 is Yes. This aligns with SCI guidance that hybrid identity = synchronized identities + a chosen authentication method (PHS/PTA or federation).

A Security Information and Event Management (SIEM) system is designed to collect and aggregate security data from multiple sources—such as servers, devices, applications, and security appliances—across an organization. It then analyzes the data for anomalies, correlations, and patterns that could indicate potential threats or breaches.

From the SCI certification learning paths, especially SC-200 (Microsoft Security Operations Analyst), Microsoft defines SIEM as follows:

“SIEM tools collect and analyze activity from multiple resources across your IT infrastructure. Microsoft Sentinel is Microsoft’s cloud-native SIEM that provides intelligent security analytics and threat intelligence to help detect and respond to security threats.”

A SIEM system:

Ingests large volumes of data (logs, events).

Uses built-in rules, AI, and analytics to identify threats.

Correlates alerts from various sources to form incidents.

Generates alerts and dashboards for security analysts.

Microsoft Sentinel, as Microsoft’s SIEM solution, embodies all of these capabilities.

Other options in the dropdown (incorrect for this context):

SOAR is focused on automating responses after SIEM alerts.

TAXII is a threat intel transport protocol, not a detection system.

ASR (Attack Surface Reduction) refers to endpoint hardening, not centralized event analysis.

✅ Therefore, the correct and Microsoft-verified term is: A security information and event management (SIEM).

Box 1: Yes

Azure Defender provides security alerts and advanced threat protection for virtual machines, SQL databases, containers, web applications, your network, your storage, and more

Box 2: Yes

Cloud security posture management (CSPM) is available for free to all Azure users.

Box 3: Yes

Azure Security Center is a unified infrastructure security management system that strengthens the security posture of your data centers, and provides advanced threat protection across your hybrid workloads in the cloud - whether they ' re in Azure or not - as well as on premises.

Microsoft 365 Endpoint Data Loss Prevention (Endpoint DLP) extends DLP controls directly to supported desktops. Microsoft states: “Endpoint DLP extends the activity monitoring and protection capabilities of DLP to Windows 10 (and later) devices.” The platform coverage is explicitly broadened to Apple desktops: “Endpoint DLP for macOS enables the same set of DLP capabilities on macOS devices (supported versions) so you can monitor and protect sensitive items across Windows and Mac endpoints.” At the same time, Microsoft clarifies the mobile scope: “Endpoint DLP is supported on Windows and macOS devices.” This means Android is not a supported operating system for Endpoint DLP (mobile data protection on Android uses different controls such as app protection policies via Microsoft Intune and conditional access). Therefore, the correct pairing of operating systems for Endpoint DLP support is Windows 10 and newer, and macOS—not Android. This aligns with Microsoft’s Endpoint DLP platform support guidance and the intended desktop-focused endpoint protections for activities such as file copy, print, upload, and removable media interactions.

Microsoft’s sensitivity labels (Microsoft Purview Information Protection) support user-driven labeling: “Users can manually apply sensitivity labels to files and emails” and organizations can also configure automatic or recommended labeling. This confirms that end users are permitted to choose a label themselves when policy allows. Microsoft also clarifies the cardinality for items: “A document or email can have only a single sensitivity label applied to it at a time.” Therefore, applying multiple sensitivity labels to the same file is not supported (labels are mutually exclusive on a given item). In addition to classification, labels can enforce protection and visual markings: “When you configure a sensitivity label, you can add protection settings such as encryption and content marking (headers, footers, and watermarks).” Word, Excel, and PowerPoint honor these content markings, so a label can automatically stamp a watermark on a Word document while embedding the label metadata for persistent protection. Together, these authoritative statements from Microsoft’s SCI documentation establish the correct responses: Yes (manual application), No (only one label per file), and Yes (labels can apply watermarks).