Sensitive data is prevalent in every organization. It can take various forms such as financial information, personal data, health data, intellectual property, among others. Mismanagement of sensitive data can lead to significant fines, penalties, and reputational damage. Therefore, it’s crucial to ensure efficient and effective management of sensitive data. This can be achieved using sensitivity labels, a feature available in Microsoft 365.

Table of Contents

What are Sensitivity Labels?

Sensitivity labels in Microsoft 365 are leveraged to classify and protect sensitive content. They allow enterprises to implement rules for data usage across their apps and services, enforce data handling standards, and protect against data leaks.

How to Design Sensitivity Labels

To design sensitivity labels, you’ll first need to understand your organization’s data types, and where sensitive information resides. The layout of sensitivity labels should resonate with these insights. In Microsoft 365 compliance center, you’ll find Microsoft-provided sensitivity labels, but it’s recommended to create custom labels that align with your organization’s needs.

Here are some guiding principles to consider while designing sensitivity labels:

  • Hierarchy: Sensitivity labels have a hierarchical level of sensitivity, typically from low to high. The nature of data that falls in these sensitivity levels should be well-defined.
  • Naming Convention: Choose names that clearly express the level of sensitivity. This helps users choose the correct label while creating or sharing the content.
  • Description: For each sensitivity label, include clear descriptions and examples. This helps users understand the implications of each label.
  • Subset of Labels: Don’t create a large set of sensitivity labels, as it can confuse your users. Start with a smaller subset that covers major data categories in your organization.

Here is a sample design of sensitivity labels:

Level Label Name Description
1 Public Information that can be shared with anyone
2 General Internal information, but not sensitive
3 Confidential Information that should not be shared outside the team
4 Highly Confidential Information that should be strictly safeguarded

Creating Sensitivity Labels in Microsoft 365

To create sensitivity labels in Microsoft 365 Compliance center, follow these steps:

  1. Go to the Microsoft 365 compliance center, and under “Solutions,” click on “Information protection.”
  2. Click on “Create a label,” then enter the label name, tool tip, and description.
  3. Choose label settings based on your requirements. You can set different protection settings for content in SharePoint, Teams, and OneDrive.
  4. Review and create the label.
  5. Once the label is created, it can be used while creating or editing content.

Testing and Implementation

Before deploying sensitivity labels in your organization, test them to ensure they meet your requirements without complicating users’ workflows. Start by applying labels to a small set of content and monitor their effectiveness. Once you attain the desired results, implement sensitivity labels across the organization.

Conclusion

Creating and designing sensitivity labels is a vital part in safeguarding a company’s sensitive data. By deploying a hierarchy of sensitivity levels tied to data types and designing descriptive labels, organizations can effectively manage and protect their sensitive data in Microsoft 365. Regular usability testing and updates will ensure these labels continue to meet an organization’s evolving needs.

Practice Test

True or False: Sensitivity labels can be applied only to emails and documents.

  • True
  • False

Answer: False

Explanation: Sensitivity labels can be applied to emails, documents, containers such as Teams, Groups, SharePoint sites and more.

In Microsoft 365, which of the following can conditions for automatic sensitivity labeling be based on?

  • A. The content of the item
  • B. The context of the item
  • C. The metadata of the item
  • D. All of the above

Answer: D. All of the above

Explanation: Sensitivity labels can be auto-applied based on the content, context, or metadata of an item.

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

  • True
  • False

Answer: False

Explanation: Sensitivity labels can be edited even after they have been created and applied.

Which of the following is the correct order to implement sensitivity labels?

  • A. Create a Label > Publish the Label > Apply the Label
  • B. Publish the Label > Create a Label > Apply the Label
  • C. Apply the Label > Create a Label > Publish the Label
  • D. Create a Label > Apply the Label > Publish the Label

Answer: A. Create a Label > Publish the Label > Apply the Label

Explanation: The first step is to create the sensitivity label, then it should be published to make it available for usage, and finally it can be applied to the content.

True or False: Sensitivity labels can enforce encryption and content marking on content with the label.

  • True
  • False

Answer: True

Explanation: Sensitivity labels can enforce protective actions such as encryption and content marking on the content the labels are applied to.

What sensitivity label setting prevents users from sharing content with people outside their organization?

  • A. Do not forward
  • B. Encrypt
  • C. Watermark
  • D. All of the above

Answer: A. Do not forward

Explanation: The “Do not forward” setting prevents sharing of content with external users.

Do sensitivity labels persist with the content if it’s downloaded or moved?

  • A. Yes
  • B. No

Answer: A. Yes

Explanation: Sensitivity labels persist with the content even if it’s downloaded, moved, or copied to a different location, ensuring continuous protection.

True or False: Sensitivity labels can be used with Microsoft 365 apps only.

  • True
  • False

Answer: False

Explanation: Sensitivity labels can be used with other services and apps too, not just Microsoft

Which Microsoft Admin Center should be used to create sensitivity labels?

  • A. SharePoint Admin
  • B. Microsoft 365 Security
  • C. Exchange Admin
  • D. Teams Admin

Answer: B. Microsoft 365 Security

Explanation: The Microsoft 365 Security center is where policies for sensitivity labels are created and managed.

True or False: It’s mandatory to create a label policy for a sensitivity label after publishing the label

  • True
  • False

Answer: False

Explanation: Although it’s recommended, it’s not mandatory to create a label policy after publishing a sensitivity label. The label policy determines who can see and use the created sensitivity labels.

Interview Questions

What is the primary purpose of sensitivity labels in Microsoft 365?

Sensitivity labels in Microsoft 365 help organizations to classify and protect their sensitive data.

Can sensitivity labels be manually or automatically applied?

Yes, sensitivity labels can be applied either manually by the users or automatically based on content within the document or email such as confidential information.

How do sensitivity labels offer protection to content in Microsoft 365?

Sensitivity labels offer protection by applying encryption, content marking, and access restrictions to the content.

How can sensitivity labels be used to protect content in Power BI?

Sensitivity labels used in Microsoft 365 can also be used in Power BI to protect content like datasets, reports, and dashboards.

Can sensitivity labels be used with Microsoft Teams, Yammer, and SharePoint?

Yes, you can use sensitivity labels with Microsoft Teams, Yammer, and SharePoint to protect and manage sensitive content.

Can sensitivity labels be applied to containers such as SharePoint sites?

Yes, sensitivity labels can be applied to containers. It helps in defining the privacy settings and external user access permissions of SharePoint sites.

How can an administrator manage sensitivity labels?

An administrator can manage sensitivity labels through Microsoft 365 compliance center or using PowerShell cmdlets.

What is the significance of priority settings in sensitivity labels?

The priority setting determines the label that gets assigned when multiple automatic labeling conditions match the content. A label with a lower priority number has higher precedence.

Can sensitivity labels encrypt emails and documents?

Yes, sensitivity labels can encrypt emails and documents, thus restricting access only to those users who have the appropriate permissions.

What is the role of sensitivity labels when used with Microsoft Information Protection?

When used with Microsoft Information Protection, sensitivity labels enable users to apply labels to documents and emails to provide them with a persistent level of protection regardless of where they’re stored or with whom they’re shared.

Can you remove a sensitivity label once it has been applied?

Yes, if the user has appropriate permissions, they can remove a sensitivity label that was previously applied.

Do sensitivity labels support co-authoring of documents?

Yes, co-authoring for Word, PowerPoint, and Excel is supported for documents that are protected by sensitivity labels.

Can you apply both a sensitivity label and a retention label to the same content?

Yes, you can apply both a sensitivity label for protection and a retention label for lifecycle management to the same content.

Can sensitivity labels be enforced in Microsoft 365 applications on Windows?

Yes, sensitivity labels can be enforced in Microsoft 365 applications on Windows, as well as on Mac, iOS, and Android.

Can you track activities related to labeled content?

Yes, administrators can use the Microsoft 365 compliance center or the unified auditing functionality to track activities related to labeled content.

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