Retention labels in Microsoft 365 are a critical feature for the SC-400 Microsoft Information Protection Administrator exam. They allow an organization to categorize data and enforce policies for retention and deletion, helping to control organizational data effectively and efficiently.

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Understanding Retention Labels

In Microsoft 365, a retention label is a tag that can be imposed on a document or email that empowers organizations to categorize data in various ways. For example, an organization can use retention labels to ensure that certain types of data are retained for specified periods or deleted when they’re no longer needed.

How to Create a Retention Label

Here are steps for creating retention labels in the Microsoft 365 compliance center:

  1. Sign in to Microsoft 365 compliance center with your administrator account.
  2. Navigate to ‘Records management’ > ‘Label’. Click on the ‘+ Create a label’ button.
  3. As you create a label, you’ll have to provide details like Name, Label settings (set retention or record management policies), and Review your settings (a summary of your settings for a final review).
  4. Once you’re done, click on the ‘Create label’ button to save your new retention label.

Applying Retention Labels

After creating a retention label, it can be applied manually or automatically to content. Here’s how:

Manual Application

Users can apply retention labels to documents or emails in Outlook, SharePoint, or OneDrive. In Outlook, for example, you can right-click an email, select ‘Assign Policy’, and choose the appropriate retention label from the list.

Automatic Application

You as an administrator can create a retention label policy in Microsoft 365 compliance center and apply it to content automatically based on certain conditions, such as keywords in content or metadata.

Retention Label Example

Here’s an example of how one might use a retention label. Suppose an organization needs to ensure that all contracts are kept for seven years. You could create a retention label called ‘Contract’ with a seven-year retention period.

Upon creation, the label could be manually applied to all contracts by users or automatically applied based on specific keywords present like ‘contract’, ‘agreement’, etc.

Importance for SC-400 Exam

As an SC-400 exam candidate, you should understand how to create and manage retention labels. This includes knowing how to:

  • Create new retention labels.
  • Configure retention label settings.
  • Apply retention labels to content.
  • Create and manage retention label policies.

Understanding these concepts will help you manage information protection and governance in your organization as per the SC-400 Microsoft Information Protection Administrator certification requirements.

In conclusion, retention labels play a key role in managing data lifecycle in an organization. With proper use of retention labels, companies can comply with legal requirements, reduce risks, and manage information effectively. As a potential SC-400 Microsoft Information Protection Administrator, it’s essential to understand how to create and apply these labels, fostering optimum data management practices in Microsoft 365.

Practice Test

True or False: Retention labels in Microsoft 365 can be used to classify data across your organization and enforce retention rules based on that classification.

  • True
  • False

Answer: True

Explanation: Retention labels allow you to classify data across your organization and apply retention rules to that data based on its classification.

Which of the following is not an option when setting up a retention label in Microsoft 365?

  • A. Apply deletion after a certain period
  • B. Trigger disposal review
  • C. Classify data as a certain type
  • D. Send auto-reminder emails when the retention period is over

Answer: D. Send auto-reminder emails when the retention period is over

Explanation: While you can set a retention label to delete data after a certain period, trigger a disposal review, and classify data, the retention label feature doesn’t support the option of sending automatic reminder emails.

True or False: Retention labels can only be applied to Microsoft 365 files and emails.

  • True
  • False

Answer: False

Explanation: Retention labels can be applied not only to Microsoft 365 files and emails, but also to SharePoint sites, Microsoft Teams, and OneDrive accounts.

You can create and configure retention labels in _______________.

  • A. Microsoft 365 compliance center
  • B. Azure Active Directory
  • C. Microsoft Intune
  • D. None of the above

Answer: A. Microsoft 365 compliance center

Explanation: You create and configure retention labels within the Microsoft 365 compliance center.

True or False: Retention labels trigger automatic actions for data preservation or disposal policies.

  • True
  • False

Answer: True

Explanation: Retention labels in Microsoft 365 do trigger automatic actions for preservation or disposal based on the settings configured for each label.

Which of the following retention label settings allows content to be deleted immediately when a label is applied?

  • A. Retain items for
  • B. Trigger a disposal review
  • C. Classify data as a certain type
  • D. Delete items automatically

Answer: D. Delete items automatically

Explanation: The “Delete items automatically” setting will remove content as soon as the label is applied.

True or False: Once a retention label is created, it cannot be edited or deleted.

  • True
  • False

Answer: False

Explanation: Retention labels can be edited or deleted as per the requirements.

True or False: Retention labels in Microsoft 365 can be auto-applied based on sensitive information types or keywords.

  • True
  • False

Answer: True

Explanation: Microsoft 365 retention labels support auto-applying based on sensitive information types or keywords in the content.

Which of the following is not a step in creating a retention label in Microsoft 365?

  • A. Name the label
  • B. Designate retention settings
  • C. Assign the label to content
  • D. Send a test email

Answer: D. Send a test email

Explanation: Sending a test email is not a step in creating a retention label in Microsoft

True or False: You can apply a retention label manually or default it to a specific document library, folder, or a set of documents.

  • True
  • False

Answer: True

Explanation: In Microsoft 365, you can apply a retention label in those ways to manage and organize your data based on your organization’s policies.

How many retention labels can you associate with a single item in Microsoft 365?

  • A. Multiple
  • B. Only one
  • C. Up to five
  • D. Up to ten

Answer: B. Only one

Explanation: You can apply only one retention label per item in Microsoft

True or False: End users with the right permissions can change or remove the retention label applied to their items.

  • True
  • False

Answer: True

Explanation: End users having the required permissions can change or further remove the retention label applied to their documents or emails.

Interview Questions

What is the purpose of retention labels in Microsoft 365?

Retention labels in Microsoft 365 allow you to classify data across your organization for governance, and enforce retention rules based on that classification.

How do retention labels work in Microsoft 365?

Retention labels can be applied either automatically by identifying sensitive information types or manually by users. Once applied, based on policy settings, content is retained or deleted.

Where can you manage the retention labels in Microsoft 365?

Retention labels are managed in the Microsoft 365 compliance center.

Which Compliance feature needs to be turned on to use retention labels automatically?

Auto labeling requires the Advanced Data Governance or Information Protection add-on.

Can retention labels in Microsoft 365 override other retention policies?

Yes, when a retention label is applied to a document, it can override other retention policies that may have been assigned to the same content.

How are retention labels published in Microsoft 365?

Retention labels are published through a retention label policy in the Microsoft 365 compliance center.

Can the retention label be removed from the document, email, or teams chat?

Yes, depending on the settings defined by the administrator while creating the retention label, a retention label can be removed or replaced by the user.

What happens when a retention label is deleted from the retention policy?

When a retention label is deleted from a policy, it will no longer be applied to new content but continue to apply to content where it’s already placed.

Which locations are supported by automatic labeling using the retention label?

SharePoint Online, OneDrive for Business, and Exchange email bodies are the locations supported by automatic labeling using the retention label.

Can users apply retention labels to folders in Outlook?

Yes, users can apply retention labels to folders in Outlook. The retention label applied to the folder will automatically apply to content in it.

How do you stop applying a retention label to content?

By either deleting the retention label from the label policy or deleting the label policy itself to stop applying the retention label to content.

In Microsoft 365, are Administrators or Users responsible for applying retention labels?

Both Administrators and Users can apply retention labels. Administrators set up the automatic or default label policies and users can manually apply labels to specific documents as well.

Are retention labels available for Microsoft Teams chats?

Yes, retention labels can be applied to Teams channel messages and Teams chats.

Can a retention label be applied to content that already has a retention label?

Yes, a retention label can replace another as long as the new label’s settings allow it.

Can retention labels be used with SharePoint On-Premises?

No, retention labels are not supported with SharePoint On-Premises, they are only available for Microsoft 365 (cloud-based) services.

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