Microsoft SC-401 Exam (page: 2)
Microsoft Administering Information Security in 365
Updated on: 28-Jul-2025

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Instructions

This is a case study. Case studies are not timed separately from other exam sections. You can use as much exam time as you would like to complete each case study. However, there might be additional case studies or other exam sections. Manage your time to ensure that you can complete all the exam sections in the time provided. Pay attention to the Exam Progress at the top of the screen so you have sufficient time to complete any exam sections that follow this case study.

To answer the case study questions, you will need to reference information that is provided in the case. Case studies and associated questions might contain exhibits or other resources that provide more information about the scenario described in the case. Information provided in an individual question does not apply to the other questions in the case study.

A Review Screen will appear at the end of this case study. From the Review Screen, you can review and change your answers before you move to the next exam section. After you leave this case study, you will NOT be able to return to it.

To start the case study

To display the first question in this case study, select the "Next" button. To the left of the question, a menu provides links to information such as business requirements, the existing environment, and problem statements. Please read through all this information before answering any questions.
When you are ready to answer a question, select the "Question" button to return to the question.

Overview

Contoso, Ltd. is a consulting company that has a main office in Montreal and three branch offices in Seattle, Boston, and Johannesburg.

Existing Environment

Microsoft 365 Environment

Contoso has a Microsoft 365 E5 tenant. The tenant contains the administrative user accounts shown in the following table.



Users store data in the following locations:

SharePoint sites
OneDrive accounts
Exchange email
Exchange public folders
Teams chats
Teams channel messages

When users in the research department create documents, they must add a 10-digit project code to each document. Project codes that start with the digits 999 are confidential.

SharePoint Online Environment

Contoso has four Microsoft SharePoint Online sites named Site1, Site2, Site3, and Site4.

Site2 contains the files shown in the following table.



Two users named User1 and User2 are assigned roles for Site2 as shown in the following table.



Site3 stores documents related to the company's projects. The documents are organized in a folder hierarchy based on the project.

Site4 has the following two retention policies applied:

Name: Site4RetentionPolicy1
Locations to apply the policy: Site4
Delete items older than: 2 years
Delete content based on: When items were created

Name: Site4RetentionPolicy2
Locations to apply the policy: Site4
Retain items for a specific period: 4 years
Start the retention period based on: When items were created At the end of the retention period: Do nothing

Problem Statements

Management at Contoso is concerned about data leaks. On several occasions, confidential research department documents were leaked.

Requirements

Planned Changes

Contoso plans to create the following data loss prevention (DLP) policy:

Name: DLPpolicy1
Locations to apply the policy: Site2
Conditions:
Content contains any of these sensitive info types: SWIFT Code Instance count: 2 to any
Actions: Restrict access to the content

Technical Requirements

Contoso must meet the following technical requirements:

All administrative users must be able to review DLP reports.
Whenever possible, the principle of least privilege must be used. For all users, all Microsoft 365 data must be retained for at least one year. Confidential documents must be detected and protected by using Microsoft 365. Site1 documents that include credit card numbers must be labeled automatically. All administrative users must be able to create Microsoft 365 sensitivity labels. After a project is complete, the documents in Site3 that relate to the project must be retained for 10 years.

You need to meet the retention requirement for the users' Microsoft 365 data.
What is the minimum number of retention policies required to achieve the goal?

  1. 1
  2. 2
  3. 3
  4. 4
  5. 6

Answer(s): B

Explanation:

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

1. 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.



You have a Microsoft 365 E5 subscription that contains a Microsoft Teams channel named Channel1.
Channel1 contains research and development documents.
You plan to implement Microsoft 365 Copilot for the subscription. You need to prevent the contents of files stored in Channel1 from being included in answers generated by Copilot and shown to unauthorized users.
What should you use?

  1. data loss prevention (DLP)
  2. Microsoft Purview insider risk management
  3. Microsoft Purview Information Barriers
  4. sensitivity labels

Answer(s): D

Explanation:

To prevent the contents of files stored in Channel1 from being included in Microsoft 365 Copilot responses and ensure unauthorized users cannot access them, you should use Microsoft Purview Sensitivity Labels.

Sensitivity labels allow you to classify, protect, and restrict access to sensitive files. You can configure label-based encryption and access control policies to ensure that only authorized users can access or interact with the files in Channel1. Microsoft 365 Copilot respects sensitivity labels, meaning if a file is labeled with restricted permissions, Copilot will not use it in generated responses for unauthorized users.



DRAG DROP (Drag and Drop is not supported)

You have a Microsoft 365 E5 subscription that uses Microsoft Defender for Cloud Apps.

You plan to deploy a Defender for Cloud Apps file policy that will be triggered when the following conditions are met:

A file is shared externally.
A file is labeled as internal only.

Which filter should you use for each condition? To answer, drag the appropriate filters to the correct conditions. Each filter may be used once, more than once, or not at all. You may need to drag the split bar between panes or scroll to view content.

Note: Each correct selection is worth one point.

  1. See Explanation section for answer.

Answer(s): A

Explanation:



HOTSPOT (Drag and Drop is not supported)

You have a Microsoft 365 E5 subscription that contains three DOCX files named File1, File2, and File3.

You create the sensitivity labels shown in the following table.



You apply the labels to the files as shown in the following table.



You ask Microsoft 365 Copilot to summarize the files, and you receive the results shown in the following table.



For each of the following statements, select Yes if the statement is true. Otherwise, select No.

Note: Each correct selection is worth one point.

  1. See Explanation section for answer.

Answer(s): A

Explanation:



You have a Microsoft 365 E5 subscription.
You need to create a sensitivity label named Label1. The solution must ensure that users can use Microsoft 365 Copilot to summarize files that have Label1 applied.
Which permission should you select for Label1?

  1. Export content(EXPORT)
  2. Copy and extract content(EXTRACT)
  3. Edit content(DOCEDIT)
  4. View rights(VIEW)

Answer(s): B

Explanation:

To allow Microsoft 365 Copilot to summarize files that have Label1 applied, the label must grant permission to extract content from the document. The correct permission for this is Copy and extract content (EXTRACT).

Microsoft 365 Copilot requires access to read and process content in documents to generate summaries. The EXTRACT permission allows users (and AI tools like Copilot) to copy and extract content for processing while still maintaining the protection applied by the sensitivity label.



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