One of the critical points of discussion is sensitivity labels. Sensitivity labels, in terms of data and compliance governance, enable the business companies or organizations to classify and protect their sensitive data across their prolific suite applications. Such classification assists in maintaining compliance and protecting sensitive information from accidental or intentional misuse.

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What are Sensitivity Labels

Sensitivity labels are crucial for protecting an organization’s sensitive data. They provide a simple and intuitive way for end users to classify critical data, and enforce data protection policies based on this classification. Specifically, sensitivity labels allow organizations to classify and protect their data across Microsoft 365 suite applications including Word, PowerPoint, Excel, Outlook, and Teams, among others.

Not just classifying, the sensitivity labels also include encryption, protection, and markings, which automatically apply the tailored protection, such as visual markings or Watermarks, headers or footers, encryption or content marking, to the content.

How Sensitivity Labels Work

When a user creates a sensitive label and applies it to a document or email, the associated rules are enforced on the content. For example, Microsoft 365 might add a watermark to a document, encrypt it, restrict access to specified users, or even prevent the document from being forwarded, copied, or printed. These rules stay with the content, even when it leaves your organization.

To create a sensitivity label through the Microsoft 365 compliance center, the steps to follow are:

  • Navigate to the Microsoft 365 compliance center and select “Classification,” then “Sensitivity Labels.”
  • Click on “Create a label.”
  • Input the needed information, like name, tooltip for users, and a description.
  • Choose protection settings, including encryption or content marking among others.
  • Apply to either email or documents (or both).
  • Finally, Review your settings and click “Create Label.”

An Example of Sensitivity Label

Let’s consider a typical use case where an organization wants to protect financial data. The organization might create a sensitivity label named “Financial Data” that applies encryption, and only allows users in the finance department to access the data. Also, it includes a watermark that includes the text “Financial Data”.

Now, whenever a document is labeled as “Financial Data”, the appropriate protections are automatically applied. Even if the document is sent outside of the organization, the protections remain in place – only users in the finance department can access the contents.

Why Sensitivity Labels are Crucial

The application of sensitivity labels significantly minimizes the risk of data loss, misuse, or inappropriate access, enhancing the overall security of the data. Additionally, they facilitate user control of their sensitive data and support the organization to stay compliant with statutory and regulatory requirements for managing sensitive data.

In this day and age of data breaches and growing cyber threats, the implementation and appropriate use of sensitivity labels become an imperative strategy for all organizations. They not only breed a proactive approach towards data protection but also help the organization fostering a responsible data handling culture among its employees.

In conclusion, sensitivity labels are an essential tool under the SC-900 Microsoft Security, Compliance, and Identity fundamentals. They empower users to protect their sensitive data and ensure that an organization is covering all bases when it comes to data protection and compliance. Understanding sensitivity labels is key to handling sensitive data right and passing the SC-900 exam.

Practice Test

True or False: Sensitivity labels are used in Microsoft 365 to classify and protect documents and emails by applying labels.

  • True
  • False

Answer: True

Explanation: Sensitivity labels in Microsoft 365 enable organizations to classify and protect data by applying labels that that carry out actions like encrypting data or applying digital rights management controls.

What are the key features of sensitivity labels in Microsoft 365? (Multiple select)

  • a) Labeling and protection
  • b) Monitoring and control
  • c) Encryption and marking
  • d) Data organization

Answer: a) Labeling and protection, c) Encryption and marking

Explanation: The primary functions of sensitivity labels are to provide labeling and protection for documents and emails, applying features such as encryption, watermarks, and content marking.

True or False: Sensitivity labels in Microsoft 365 are typically applied by users manually.

  • True
  • False

Answer: True

Explanation: While sensitivity labels can be automatically applied by administrators using certain criteria, they are typically applied manually by users.

Sensitivity labels can be used to _____. (Single choice)

  • a) Classify and protect an organization’s data
  • b) Generate reports for data analysis
  • c) Streamline the organization’s workflow
  • d) Sync data across multiple devices

Answer: a) Classify and protect an organization’s data

Explanation: Sensitivity labels in Microsoft 365 allow organizations to classify and protect their data, such as sensitive emails or important documents.

True or False: Sensitivity labels can also be configured for automatic application based on content detection.

  • True
  • False

Answer: True

Explanation: Administrators can set policies for sensitivity labels to be automatically applied to content based on certain detection criteria.

The use of sensitivity labels in Microsoft 365 primarily helps to _____. (Single choice)

  • a) Enhance data security
  • b) Increase operational efficiency
  • c) Promote teamwork
  • d) Facilitate remote working

Answer: a) Enhance data security

Explanation: By classifying and protecting an organization’s data, sensitivity labels contribute to enhanced data security within the organization.

True or False: Sensitivity labels can be used in SharePoint and Teams to protect and manage content.

  • True
  • False

Answer: True

Explanation: Sensitivity labels can be used in SharePoint, Teams and other Microsoft 365 services to protect and manage sensitive or confidential content.

The encryption feature in sensitivity labels _____. (Single choice)

  • a) Speeds up data processing
  • b) Allows data to be securely stored and transferred
  • c) Simplifies data cataloguing
  • d) Streamlines communication channels

Answer: b) Allows data to be securely stored and transferred

Explanation: The encryption feature in sensitivity labels ensures data is securely stored and transferred within and outside of the organization.

True or False: Sensitivity labels do not support co-authoring in Office web apps.

  • True
  • False

Answer: False

Explanation: Sensitivity labels support co-authoring in Word, PowerPoint, and Excel web apps to enable secure collaboration on sensitive documents.

Sensitivity labels in Microsoft 365 can be applied to _____. (Multiple select)

  • a) Emails
  • b) Office documents
  • c) Teams chats
  • d) Calendar events

Answer: a) Emails , b) Office documents , c) Teams chats

Explanation: Sensitivity labels can be applied to classify and protect emails, office documents, and Teams chats but not calendar events.

Interview Questions

What are sensitivity labels in the context of Microsoft Security?

Sensitivity labels in Microsoft Security are tags that can be applied to content to protect and regulate its access. They help organizations manage and protect sensitive information across multiple applications by enforcing protective actions such as encryption or visual markings.

What are the requirements for creating sensitivity labels?

To create sensitivity labels, you must have a Microsoft 365 E3 or E5 subscription and the appropriate permissions assigned in the Microsoft 365 compliance center.

How are sensitivity labels in Microsoft compliance are applied?

Sensitivity labels can be applied by end users when they create a document or an email, or they can be auto-applied by admins based on content detection.

What can be done with Microsoft sensitivity labels?

Microsoft sensitivity labels can be used to classify and protect sensitive information based on its content. They can be used to set protection measures like encryption or content marking, and regulate access by applying certain restrictions.

How do sensitivity labels help in maintaining compliance?

Sensitivity labels help in maintaining compliance by enforcing protection controls such as encryption, content marking, and access restriction on regulated and confidential information ensuring such data is appropriately protected.

What happens if a sensitivity label is removed from content on Microsoft platforms?

If a sensitivity label is removed the protection stays in effect since the protection settings are persistently embedded in the content. The data stays protected even when it’s outside your organization’s control.

Can sensitivity labels be auto-applied in real-time?

Yes, sensitivity labels can be auto-applied in real-time based on content detection. Admins can configure labels to automatically apply based on data type or content found within the data.

Can we apply sensitivity labels to existing content?

Yes, sensitivity labels can be applied to existing content within Office apps, or via services like SharePoint and Teams. Both manual and automatic sensitivity labeling can be supported depending on configurations.

What is the role of Azure Information Protection (AIP) in sensitivity labels?

AIP helps in the creation and configuration of sensitivity labels and their policies. It is integrated with Office and other Microsoft services to apply labels according to their configured policies.

How can sensitivity labels be used with Microsoft Teams, Office 365 groups, and SharePoint sites?

Sensitivity labels can be used to control privacy settings, external user access, and unmanaged device access for Microsoft Teams, Office 365 groups, and SharePoint sites.

How can we restrict certain actions on sensitive data using sensitivity labels?

Sensitivity labels can be configured to restrict certain actions such as copying, editing, printing, forwarding, or deleting sensitive data.

Is it possible to track the activities of sensitive data with sensitivity labels?

Yes, sensitivity labels with Azure Information Protection can provide visibility into how labeled information is being used and shared, offering comprehensive auditing and reporting.

Can sensitivity labels enforce encryption on sensitive data?

Yes, sensitivity labels can apply protection settings such as encryption and access restrictions that stay with the data regardless of where it’s stored or with whom it’s shared.

Can sensitivity labels apply visual markings to documents?

Yes, sensitivity labels can apply visual markings such as watermarks, headers or footers to Word, PowerPoint, and Excel files to indicate the sensitivity of the data.

How do we manage sensitivity labels in Microsoft Security?

Sensitivity labels can be managed in the Microsoft 365 compliance center where admins can create, configure, and auto-apply labels based on their organization’s data handling requirements.

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