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Question 1:

A company preparing for the SC-900 exam wants to understand the purpose of Microsoft Entra ID Identity Protection. Which statement best describes what Identity Protection is designed to do?

A) It encrypts all Microsoft 365 user data automatically
B) It detects identity risks such as risky users, risky sign-ins, and compromised credentials
C) It blocks all sign-ins from unmanaged devices by default
D) It scans on-premises servers for malware and vulnerabilities

Answer: B)

Explanation:

Microsoft Entra ID Identity Protection is a core identity security capability that plays an important role in the SC-900 exam because it focuses on recognizing identity-related threats using cloud-powered intelligence. At its heart, Identity Protection is a system that identifies and responds to risk conditions associated with user identities and sign-ins. Option B captures this purpose precisely because it references the three main pillars of Identity Protection: risky users, risky sign-ins, and compromised credentials. These categories are essential for any security strategy built around identity access and threat detection.

Identity Protection is built upon Microsoft’s enormous security intelligence graph, which pulls signals from trillions of daily detections across devices, cloud platforms, services, and worldwide identity patterns. Using this intelligence, Identity Protection identifies anomalies such as unfamiliar sign-in behaviors, impossible travel scenarios, leaked credentials on the dark web, sign-ins from suspicious IP addresses, bot-related login attempts, and other irregular authentication patterns. Each one of these events can contribute to a risk score, allowing security teams to respond before attackers exploit weaknesses. This risk-based approach makes Identity Protection not just reactive but also preventative.

Option A suggests that Identity Protection encrypts Microsoft 365 user data, but encryption is not its purpose. Microsoft 365 data encryption is handled at the platform and application levels using independent technologies like service-side encryption, customer key, double encryption, and other Microsoft 365 security controls. Identity Protection does not directly interact with stored data; instead, it monitors sign-in traffic and identity-related behaviors.

Option C implies that Identity Protection blocks all unmanaged device sign-ins by default. While Conditional Access policies can be configured to limit access based on device compliance, Identity Protection itself does not enforce blanket blocks on unmanaged devices. Instead, it evaluates risk and triggers Conditional Access actions that organizations choose, such as requiring MFA, blocking high-risk sign-ins, or enforcing password resets. It is a decision-support and detection system, not an enforcement system on its own.

Option D confuses identity-focused detection with endpoint or server security scanning. Malware detection and vulnerability scanning belong to products like Microsoft Defender for Endpoint or Defender for Cloud. Identity Protection focuses entirely on identity signals, not file scanning, malware detection, or infrastructure vulnerability assessments.

Identity Protection provides organizations with automated response capabilities through Conditional Access. This integration is crucial because it enables real-time actions based on identity risk. For example, high-risk users can be required to perform password resets or be blocked from accessing any application. Similarly, risky sign-ins can trigger multi-factor authentication requirements. This adaptive security approach matches modern identity-driven security architecture emphasized in SC-900.

One crucial topic the exam highlights is how Identity Protection categorizes risks. User risks indicate the likelihood that an account has been compromised. Sign-in risks evaluate the likelihood that a given authentication attempt is malicious. These risks help organizations shift towards a Zero Trust model—one where identity is constantly verified and trust is not assumed.

Identity Protection also includes detailed reporting and investigation tools. The portal provides dashboards for investigating compromised accounts, suspicious authentication attempts, and long-term risk patterns. Security teams can analyze sign-in attempts flagged for reasons like impossible travel, suspicious IP addresses, anonymous networks, credential stuffing activities, and atypical sign-in locations. These reports allow administrators to understand attack patterns and adjust their security strategy accordingly.

Another major point reflected in SC-900 is the concept of automation. Modern identity threats are extremely fast, and manual responses are no longer sufficient. Identity Protection automatically evaluates risks and triggers Conditional Access actions without requiring human intervention. This automated response protects organizations from credential-based attacks, which remain the most common form of enterprise intrusion.

For learning purposes, note that Identity Protection works with Microsoft Entra ID P2 licensing. Understanding licensing requirements is important for the exam because capabilities like risk-based Conditional Access and advanced identity risk detection require higher-tier identity governance features. SC-900 expects test-takers to know which features belong to which licensing models and how they work in a basic architectural sense.

Identity Protection also supports integrations with SIEM and SOAR tools like Microsoft Sentinel. Through these integrations, identity risk signals can be enriched with other security information. SC-900 often emphasizes that identity security is not isolated but interacts with the larger Microsoft security ecosystem.

A key advantage of Identity Protection is that it helps organizations reduce their attack surface by catching compromised credentials early. For example, if leaked password hashes appear on a dark web dump, Identity Protection alerts administrators and flags affected accounts as at-risk. This early detection prevents account misuse before attackers exploit the compromised credentials.

It also supports bulk remediation actions through automation, enabling organizations with thousands of users to apply consistent security controls. SC-900 stresses the importance of scalability because identity attacks target enterprises of all sizes and automation ensures consistent enforcement.

Identity Protection is particularly important in hybrid environments. Even though on-premises Active Directory remains widely used, its security model is vulnerable to credential theft attacks. Identity Protection helps strengthen hybrid environments when synchronized identities authenticate using Entra ID, ensuring cloud security intelligence protects even traditional identity infrastructures.

Finally, Identity Protection contributes to an organization’s Zero Trust strategy. Zero Trust assumes breach, verifies explicitly, and relies on least privilege. Identity Protection supports this by continuously evaluating risk and ensuring high-risk sessions are monitored or blocked. This continuous evaluation is a major theme of the exam.

All of these capabilities—automated risk detection, integrated Conditional Access, risk reporting, threat intelligence, and Zero Trust alignment—make option B the only correct choice. It reflects the entire mission of Microsoft Entra ID Identity Protection: protecting organizations from identity-based threats through risk detection and automated response.

Question 2:

What is the primary purpose of Microsoft Defender for Cloud Apps within the Microsoft security ecosystem?

A) To analyze cloud app usage, detect risky activities, and enforce app-related security controls
B) To encrypt all files uploaded to cloud storage automatically
C) To manage on-premises firewall configurations
D) To create compliance scores for Microsoft 365 workloads

Answer: A)

Explanation:

Microsoft Defender for Cloud Apps—formerly known as Cloud App Security or MCAS—is a critical part of the SC-900 curriculum because it provides visibility, control, and threat protection across cloud applications. Option A captures the core purpose accurately: analyzing cloud app usage, detecting risky behaviors, and enforcing governance controls. Defender for Cloud Apps serves as a Cloud Access Security Broker, or CASB, which is a major topic emphasized in the SC-900 exam.

One of the biggest challenges organizations face today is shadow IT—cloud services used by employees without IT oversight. Defender for Cloud Apps helps organizations discover all cloud applications accessed from the corporate network or authenticated through corporate identities. Through app discovery, it categorizes applications by risk level, assessing factors like security certifications, compliance adherence, encryption practices, and past breach history. This deep visibility enables security teams to make informed decisions about which apps to allow or block.

Option B incorrectly suggests that Defender for Cloud Apps encrypts all files uploaded to cloud storage. File encryption is handled by storage providers or by tools like Microsoft Purview Information Protection. While Defender for Cloud Apps can monitor and control file sharing, it does not encrypt files itself.

Option C mentions managing on-premises firewall configurations. This is unrelated to the role of Defender for Cloud Apps. Firewall management falls under network security solutions, not CASB technology. Defender for Cloud Apps focuses on cloud environments.

Option D refers to compliance scoring. Although Defender for Cloud Apps has compliance-related insights, full compliance scoring belongs to Microsoft Purview Compliance Manager, not Defender for Cloud Apps.

Defender for Cloud Apps also provides threat protection capabilities that integrate signals across cloud environments. For example, it detects unusual session behaviors such as impossible travel, excessive downloads, suspicious administrative actions, or abnormal OAuth app permissions. These detections help identify compromised accounts or malicious insiders.

Another major exam topic is how Defender for Cloud Apps integrates with Conditional Access App Control. This integration allows real-time session monitoring and control, such as preventing downloads of sensitive content or enforcing read-only access for risky sessions. These controls support Zero Trust by ensuring that access decisions adapt to the session’s context.

Defender for Cloud Apps also provides governance actions. Administrators can automate responses such as removing public sharing links, revoking OAuth permissions, or suspending compromised users. This automation mirrors the security automation topics emphasized throughout SC-900.

Additionally, the tool offers comprehensive visibility into sanctioned and unsanctioned apps. Organizations can label apps as “approved” or “unsanctioned,” and integrations with firewalls or proxies can automatically block disallowed apps. This aligns with the Zero Trust principle of limiting access to approved applications.

Its integration with security tools like Microsoft Defender XDR enhances cross-domain detection. For example, if Defender for Endpoint detects malware interacting with cloud storage, Defender for Cloud Apps can cross-reference related cloud activities. SC-900 highlights these integrations as essential for enterprise-wide security.

Audit logs and activity monitoring allow organizations to investigate suspicious behaviors across SaaS applications like Microsoft 365, Salesforce, AWS, Box, Dropbox, and hundreds more. These logs assist security teams in understanding abnormal activity and refining security policies.

Another benefit is app governance for OAuth applications. Defender for Cloud Apps evaluates OAuth apps for risk and alerts administrators when apps request risky permissions. This is critical because OAuth abuse has become a powerful attack vector. SC-900 often tests basic understanding of OAuth threat scenarios.

The tool also supports DLP enforcement across cloud apps. When integrated with Microsoft Purview, it can detect sensitive data like financial records or personal information in cloud storage and apply restrictions. This helps organizations manage information risks more effectively.

Because Defender for Cloud Apps plays such a central role in the modern cloud security model—providing visibility, control, governance, and threat detection across cloud services—option A is the only accurate answer.

Question 3:

What is the primary goal of Zero Trust, as described in the SC-900 exam?

A) Trust internal networks but verify all external traffic
B) Assume breach, verify explicitly, and apply least privilege access
C) Block all access by default in every situation
D) Encrypt every data transaction regardless of sensitivity

Answer: B)

Explanation:

Zero Trust is one of the most important conceptual frameworks in SC-900. Option B captures the core of Zero Trust perfectly because it includes the three foundational principles: assume breach, verify explicitly, and enforce least privilege access. These principles apply across identity, endpoints, networks, applications, data, and infrastructure.

The idea behind Zero Trust is that organizations cannot rely on traditional perimeter-based security, where internal networks were implicitly trusted. Modern threats come from inside and outside the environment, and attackers frequently compromise legitimate credentials. Because of this, Zero Trust assumes that an attacker may already be present. Therefore, every access request must be carefully validated, and users or workloads should receive only the minimum permissions necessary.

Option A incorrectly states that Zero Trust trusts internal networks. In fact, Zero Trust removes implicit trust entirely. Internal networks are not considered safe or trusted; they must be evaluated like any other network.

Option C suggests that Zero Trust blocks all access. While Zero Trust restricts access significantly, it is not designed to halt business productivity. Instead, it enforces intelligent, risk-based access decisions.

Option D implies that Zero Trust requires encryption for every transaction. While encryption is important, Zero Trust is much broader, involving identity verification, device health, session monitoring, and access control.

A major area SC-900 emphasizes is that Zero Trust is not a single product but a strategy. It requires integrated capabilities across Microsoft technologies. Entra ID supports verification using MFA, Conditional Access, and identity governance. Defender for Cloud provides infrastructure posture management. Microsoft Defender for Endpoint ensures device health. Microsoft Purview protects data with classification and DLP. Defender for Cloud Apps controls app usage. Together, these systems form a Zero Trust architecture.

Another major theme is continuous evaluation. Zero Trust never grants permanent trust. Access decisions are made dynamically, considering user location, device status, risk level, app sensitivity, session behavior, and compliance status. If the session becomes risky, additional prompts like MFA may be triggered, or access may be blocked.

Least privilege is critical because it reduces the impact of compromised accounts. Even if an attacker steals credentials, limited access prevents widespread damage. SC-900 highlights tools like Privileged Identity Management and Just-in-Time access as examples of least privilege in action.

Zero Trust also includes micro-segmentation, ensuring workloads and services only communicate when necessary. This prevents lateral movement, a common tactic used by attackers.

In summary, the Zero Trust model builds a security framework that continuously verifies trust, limits access as much as possible, and assumes attackers are always present. Therefore, option B is correct.

Question 4:

Which statement best describes the purpose of Microsoft Purview Information Protection?

A) It manages device compliance policies
B) It classifies, labels, and protects sensitive data across an organization
C) It scans networks for intrusions in real time
D) It creates identity governance workflows for lifecycle management

Answer: B)

Explanation:

Microsoft Purview Information Protection focuses on discovering, classifying, labeling, and protecting sensitive data. Option B correctly describes its mission. SC-900 covers information protection extensively because modern organizations must secure data across cloud services, on-premises systems, emails, documents, and endpoints. Information Protection ensures that data security follows the data wherever it travels.

Option A refers to device compliance policies, which belong to Microsoft Intune, not Information Protection.

Option C refers to network intrusion detection, which is handled by Defender for Cloud or Defender for Endpoint, not Purview Information Protection.

Option D refers to identity lifecycle management, which is handled by Entra ID identity governance tools like Access Reviews and Entitlement Management.

Information Protection uses sensitivity labels that classify data based on sensitivity levels such as confidential, highly confidential, general, public, and custom categories. These labels can apply encryption, visual markings, watermarking, content restrictions, and access policies. The exam emphasizes how labels can be applied manually by users or automatically using machine learning, content detection, or sensitive information types.

Purview Information Protection integrates with Microsoft 365 apps like Word, Excel, PowerPoint, Outlook, SharePoint, OneDrive, and Teams. It also extends to Windows endpoints through endpoint DLP and even supports non-Microsoft applications via SDK and APIs.

Another major SC-900 theme is data lifecycle protection. Information Protection ensures that sensitive data remains secured even when shared externally. This is accomplished through encryption and access permissions enforced through Entra ID.

Automatic labeling is another heavily tested topic. Automatic labeling examines document content to detect sensitive information such as credit card numbers, health records, or classified project names. When detected, labels apply automatically without user intervention.

Purview also integrates with cloud services to track and revoke access to shared documents. This is important because organizations need to maintain control even after a file leaves the corporate network.

Since Information Protection governs data classification, labeling, and protection, option B is the correct choice.

Question 5:

What is the purpose of Microsoft Defender for Endpoint?

A) It provides endpoint detection, response, and threat protection across devices
B) It manages Azure policy assignments
C) It monitors Microsoft 365 licensing usage
D) It performs only file encryption on Windows devices

Answer: A)

Explanation:

Microsoft Defender for Endpoint is a powerful security platform focused on endpoint detection and response (EDR), threat protection, vulnerability management, attack surface reduction, device control, and advanced security analytics. Option A captures this broad purpose accurately. Defender for Endpoint is central to the SC-900 exam because it provides intelligence and visibility into endpoint-based attacks like ransomware, malware, phishing, fileless attacks, and exploit attempts.

Option B refers to Azure policy assignments, which belong to Azure Policy, not Defender for Endpoint.

Option C refers to licensing monitoring, which has no relation to endpoint security.

Option D states that Defender for Endpoint only encrypts files. File encryption is part of BitLocker or Information Protection, not Defender for Endpoint.

Defender for Endpoint uses behavioral sensors built into Windows, macOS, Linux, Android, and iOS devices. These sensors collect security signals that feed into Microsoft Defender XDR. Defender for Endpoint uses this intelligence to detect suspicious behaviors such as unusual process executions, privilege escalation attempts, lateral movement, credential dumping, and exploitation activity.

Attack surface reduction rules limit what potentially malicious scripts, macros, and executables can run. This significantly reduces the chance of malware execution.

The EDR capabilities allow analysts to investigate device activity, view timelines of attacks, and isolate infected devices from the network. Security teams can run automated remediation actions powered by AI to stop attacks in progress.

Device inventory and vulnerability management help organizations discover misconfigured devices or outdated software versions, aligning with Zero Trust principles. Defender for Endpoint’s integration with Conditional Access allows organizations to restrict access from non-compliant or risky devices.

SC-900 emphasizes that Defender for Endpoint is part of Microsoft’s XDR approach—extended detection and response. This means it correlates endpoint signals with identity, email, cloud app, and network data to provide a unified view of security incidents.

Another major theme is real-time threat intelligence. Defender for Endpoint receives threat signals from Microsoft’s security graph, which analyzes trillions of signals daily. This intelligence helps the system detect new and emerging threats more effectively.

Defender for Endpoint supports automated investigation and remediation. When threats are detected, the system can automatically check for related processes, artifacts, and changes across the device. It can quarantine files, terminate processes, remove malicious registry entries, and undo attacker actions.

The SC-900 exam also stresses endpoint compliance. Defender for Endpoint integrates with Microsoft Intune to enforce compliance rules. Devices that fail security checks can be blocked from accessing corporate resources.

Because Defender for Endpoint provides comprehensive endpoint security through detection, prevention, and automated response, option A is the only correct answer.

Question 6

Which of the following describes the primary purpose of Microsoft Information Protection (MIP) in an organization?

A) To provide endpoint protection against malware
B) To classify, label, and protect data based on sensitivity
C) To manage user identities and access permissions
D) To monitor network traffic for anomalies

Answer: B)

Explanation:

The correct answer is B) To classify, label, and protect data based on sensitivity.

Microsoft Information Protection (MIP) is a framework within Microsoft 365 that focuses on helping organizations discover, classify, label, and protect sensitive information wherever it lives—whether in emails, documents, or other data repositories. Unlike endpoint protection solutions, which focus on defending against malware and viruses (option A), MIP is designed to manage the lifecycle of data and ensure that the organization can enforce policies regarding data privacy, compliance, and protection. MIP integrates with tools such as Microsoft Purview, Office 365, and Azure Information Protection (AIP) to provide a comprehensive approach to safeguarding data.

MIP uses sensitivity labels to categorize data. Labels can be applied manually by users or automatically through policies that scan content for sensitive information types such as credit card numbers, social security numbers, or intellectual property. Once labeled, data can be protected with encryption, access restrictions, or watermarking. This ensures that sensitive information is not accidentally shared with unauthorized users.

Option C is incorrect because managing user identities and access permissions is primarily the role of Microsoft Identity and Access Management solutions, such as Azure Active Directory (Azure AD), not MIP. Option D is incorrect because monitoring network traffic is handled by Microsoft Defender for Endpoint or Microsoft Sentinel rather than MIP.

MIP is particularly crucial for organizations subject to regulatory compliance requirements such as GDPR, HIPAA, or ISO 27001, as it ensures that sensitive information is properly classified and secured throughout its lifecycle. By using MIP, organizations can enforce consistent policies across different environments, including on-premises data, cloud storage, and SaaS applications.

MIP also integrates with Microsoft 365 compliance solutions to provide visibility into how data is being used and accessed. Organizations can track whether sensitive files are being shared externally or if policies are being overridden, giving administrators granular control and reporting capabilities. This combination of classification, labeling, and protection ensures that businesses can mitigate risk, prevent data leaks, and comply with legal and regulatory requirements while maintaining productivity.

Furthermore, MIP allows for automation in labeling sensitive data, reducing human error. For example, if an organization identifies documents containing personal identifiable information (PII), it can automatically apply a “Confidential” label that enforces encryption and limits sharing options. The solution also supports user education through prompts, informing users when they attempt to share sensitive data inappropriately.

Microsoft Information Protection (MIP) is focused on protecting sensitive information through classification, labeling, and policy enforcement. It does not replace endpoint security, identity management, or network monitoring solutions but complements them to provide an integrated approach to data security and regulatory compliance.

Question 7

Which component of Microsoft Security, Compliance, and Identity (SCI) solutions allows administrators to detect and respond to security threats in real time?

A) Microsoft Sentinel
B) Microsoft Purview
C) Microsoft Defender for Endpoint
D) Azure Active Directory

Answer: A)

Explanation:

The correct answer is A) Microsoft Sentinel.

Microsoft Sentinel is a cloud-native Security Information and Event Management (SIEM) and Security Orchestration, Automation, and Response (SOAR) solution that provides real-time monitoring, threat detection, and response capabilities across an organization’s entire IT ecosystem. Unlike traditional on-premises SIEM solutions, Sentinel leverages cloud scalability and advanced analytics to process vast amounts of data from multiple sources, including Azure, Microsoft 365, and other on-premises or third-party environments.

Sentinel collects data from various sources through connectors, such as Azure Active Directory logs, Office 365 activity logs, firewall alerts, and endpoint telemetry. This centralized data collection allows security teams to gain comprehensive visibility across the organization and detect threats that may otherwise go unnoticed. Advanced AI and machine learning models within Sentinel analyze these logs to identify anomalous behaviors, suspicious activities, and potential security incidents.

Option B, Microsoft Purview, is primarily focused on data governance and compliance, helping organizations classify and protect sensitive information. While it contributes to security by ensuring data protection, it does not provide real-time threat detection. Option C, Microsoft Defender for Endpoint, is focused on endpoint protection, detecting and responding to malware or malicious activities on devices but does not provide the full SIEM capabilities needed for centralized monitoring across the organization. Option D, Azure Active Directory (Azure AD), is responsible for identity and access management, authentication, and conditional access but does not provide broad threat detection across all resources.

Sentinel also enables automation through playbooks, which allow security teams to respond quickly to threats. For example, when Sentinel detects a compromised account attempting to access sensitive resources, an automated playbook can isolate the user account, notify administrators, and initiate an investigation workflow. This reduces response times and helps contain threats before they escalate.

Another key aspect of Sentinel is its integration with threat intelligence sources. By leveraging threat intelligence feeds, organizations can detect emerging attack vectors, recognize known malicious IP addresses, and proactively defend against new threats. Additionally, Sentinel’s dashboards provide visualizations of alerts, incidents, and trends, helping security teams prioritize investigations based on risk severity and potential business impact.

Microsoft Sentinel plays a critical role within Microsoft Security, Compliance, and Identity solutions by providing centralized, real-time monitoring and threat response capabilities. It complements endpoint protection, identity management, and data governance solutions to provide a comprehensive security strategy for organizations.

Question 8

Which of the following features of Azure Active Directory (Azure AD) helps organizations enforce security policies based on user location, device state, or application risk?

A) Conditional Access
B) Identity Protection
C) Privileged Identity Management
D) Multi-Factor Authentication

Answer: A)

Explanation:

The correct answer is A) Conditional Access.

Conditional Access is a powerful policy engine within Azure Active Directory that allows organizations to enforce security policies dynamically based on contextual information. The core idea is that access to resources should be granted only when certain conditions are met, reducing risk while enabling productivity.

For instance, organizations can enforce Conditional Access policies that require Multi-Factor Authentication (MFA) when users attempt to access resources from unfamiliar locations, risky devices, or untrusted networks. Similarly, policies can restrict access based on device compliance, such as ensuring that only devices with up-to-date security patches or endpoint protection enabled are allowed access to corporate applications.

Option B, Identity Protection, focuses on detecting and responding to identity-based risks such as compromised accounts or sign-in anomalies. While it identifies risks, Conditional Access is the mechanism that enforces the policy decisions. Option C, Privileged Identity Management (PIM), manages and monitors privileged accounts to reduce the risk of over-privileged access, but it does not control general access conditions. Option D, Multi-Factor Authentication, is a method of authentication but does not provide the conditional logic that evaluates context like location or device state.

Conditional Access policies can be granular and tailored to specific users, groups, or applications. For example, a policy can target a sensitive financial application and require MFA only for users in the finance department while allowing seamless single sign-on for other employees. This flexibility ensures that security measures are balanced with user experience, minimizing friction while maintaining protection.

From a compliance perspective, Conditional Access can help organizations meet regulatory requirements by enforcing security controls that prevent unauthorized access to sensitive data. This is especially important in highly regulated industries, such as healthcare and finance, where data protection standards are stringent.

Furthermore, Conditional Access integrates with other Azure AD features. For example, it can leverage signals from Identity Protection to automatically block or require additional verification when a risk event is detected. It also works in conjunction with Microsoft Endpoint Manager to ensure that only compliant devices can access corporate resources, further strengthening security posture.

Conditional Access is a fundamental feature of Azure AD that enforces security policies dynamically based on contextual conditions like user location, device state, and application risk. It complements identity protection, MFA, and privileged access management to create a comprehensive access security framework for modern organizations.

Question 9

Which of the following is a primary benefit of Microsoft Compliance Manager?

A) Provides threat intelligence for malware attacks
B) Helps assess compliance posture and manage regulatory requirements
C) Monitors network traffic for anomalies
D) Manages endpoint protection policies

Answer: B)

Explanation:

The correct answer is B) Helps assess compliance posture and manage regulatory requirements.

Microsoft Compliance Manager is a compliance management tool designed to help organizations assess their regulatory compliance posture and implement appropriate controls. It provides a centralized dashboard that tracks compliance with regulations such as GDPR, HIPAA, ISO 27001, and many others. By providing actionable insights, Compliance Manager helps organizations understand their current compliance status, identify gaps, and prioritize remediation efforts.

Option A, providing threat intelligence, is a function of Microsoft Defender and Sentinel, not Compliance Manager. Option C, monitoring network traffic, falls under security operations tools such as Sentinel or Defender for Endpoint. Option D, managing endpoint protection policies, is handled through Microsoft Defender and Endpoint Manager. Compliance Manager, by contrast, is specifically designed for compliance risk assessment and control management.

Compliance Manager uses a score-based system to quantify an organization’s compliance posture. Each control within a standard or regulation is assigned a score based on implementation status. Organizations can track progress, assign actions to responsible users, and generate reports for audits. The tool also includes assessment templates for specific regulations, enabling organizations to quickly adapt to multiple compliance frameworks.

A key benefit is the integration with Microsoft 365 services, allowing automated assessment of controls such as data retention, access management, and information protection. For example, the tool can automatically check if data labeling policies are applied correctly, or if user access controls comply with regulations. This automation reduces the manual burden of compliance audits and provides continuous monitoring.

Compliance Manager also supports documentation and evidence collection. This is critical for audit readiness, as organizations can generate reports demonstrating adherence to regulatory requirements. Additionally, it includes workflow capabilities for assigning and tracking remediation tasks, ensuring accountability across teams.

Microsoft Compliance Manager helps organizations assess compliance posture, manage regulatory obligations, and implement controls efficiently. It does not provide direct threat intelligence, endpoint protection, or network monitoring, but instead focuses on risk assessment and regulatory adherence, making it a vital component of a Microsoft SCI strategy.

Question 10

Which of the following is a feature of Microsoft Defender for Identity?

A) Detects and investigates identity-based threats on-premises
B) Classifies and labels sensitive documents
C) Provides conditional access policies
D) Monitors compliance scores for regulations

Answer: A)

Explanation:

The correct answer is A) Detects and investigates identity-based threats on-premises.

Microsoft Defender for Identity is a cloud-based security solution designed to help organizations detect, investigate, and respond to identity-based threats across on-premises Active Directory environments. It monitors user and entity behavior to identify suspicious activities such as lateral movement, pass-the-hash attacks, and compromised credentials.

Option B, classifying and labeling sensitive documents, is a function of Microsoft Information Protection, not Defender for Identity. Option C, conditional access policies, is handled by Azure AD. Option D, monitoring compliance scores, is performed by Compliance Manager. Defender for Identity focuses specifically on identity security within the organization.

Defender for Identity leverages sensors deployed on domain controllers to monitor authentication requests and network traffic. By analyzing patterns of activity, it identifies anomalies that may indicate compromised accounts or insider threats. Alerts generated by Defender for Identity include detailed information about the affected accounts, devices, and actions taken, enabling security teams to respond effectively.

The solution integrates with Microsoft Sentinel and Microsoft 365 security tools, allowing centralized incident management and automated response workflows. For example, when a potential credential theft is detected, security teams can isolate affected accounts, reset passwords, and initiate investigation processes automatically.

Furthermore, Defender for Identity provides detailed insights into privileged account usage and risky sign-ins. Organizations can create policies to detect unusual activity, such as accounts attempting to access resources outside their normal scope or from unexpected geographic locations. This proactive monitoring helps prevent security breaches and limits the potential damage from compromised credentials.

In summary, Microsoft Defender for Identity is a critical tool for detecting and responding to identity-based threats on-premises. It complements cloud-based identity and access management solutions by providing deep monitoring of Active Directory environments, ensuring comprehensive protection against attacks targeting organizational identities.

Question 11

Which of the following is the main purpose of Microsoft Defender for Endpoint?

A) Protects endpoints from malware and other cyber threats
B) Monitors user compliance with data governance policies
C) Provides identity protection for cloud accounts
D) Assesses organizational compliance posture

Answer: A)

Explanation:

The correct answer is A) Protects endpoints from malware and other cyber threats.

Microsoft Defender for Endpoint is an enterprise-grade endpoint security platform designed to prevent, detect, investigate, and respond to advanced threats on endpoints such as desktops, laptops, servers, and mobile devices. Its primary objective is to ensure the security of devices within an organization’s IT ecosystem.

The platform uses multiple layers of protection. At the prevention layer, it employs techniques such as antivirus scanning, attack surface reduction, and firewall management to prevent malware infections, ransomware attacks, and other threats. Real-time monitoring helps identify suspicious activity on endpoints, while behavioral analysis and AI-driven algorithms detect previously unknown threats.

Option B is incorrect because monitoring compliance with data governance policies is handled by Microsoft Information Protection and Compliance Manager, not Defender for Endpoint. Option C, identity protection, is mainly the function of Azure AD Identity Protection. Option D, assessing organizational compliance posture, falls under Microsoft Compliance Manager.

Defender for Endpoint also includes advanced threat analytics, which allows security teams to investigate incidents. It collects and correlates signals from endpoints to provide insights into attacks, including the origin, scope, and impact of an incident. This allows IT teams to take informed action, such as isolating devices, removing malware, or remediating vulnerabilities.

The platform integrates with other Microsoft security solutions, including Microsoft Sentinel for centralized threat monitoring, Microsoft Defender for Identity for identity-based threat detection, and cloud apps through Microsoft Defender for Cloud Apps. This ecosystem approach enables a holistic security posture across devices, identities, and data.

An important feature is endpoint detection and response (EDR), which provides detailed telemetry, alerting, and automated investigation capabilities. EDR is critical for modern threats that bypass traditional antivirus defenses, allowing proactive monitoring and mitigation. Additionally, the solution supports compliance requirements by ensuring that devices meet security standards, reducing the risk of breaches that could lead to data loss or regulatory violations.

Microsoft Defender for Endpoint is focused on protecting devices from malware, cyberattacks, and other threats, providing prevention, detection, and response capabilities. It complements identity protection, compliance, and data governance solutions but is uniquely focused on endpoint security.

Question 12

Which feature of Microsoft 365 allows administrators to control access to apps based on user risk, device compliance, and location?

A) Microsoft Information Protection
B) Conditional Access
C) Privileged Identity Management
D) Azure AD Identity Protection

Answer: B)

Explanation:

The correct answer is B) Conditional Access.

Conditional Access is a feature within Azure Active Directory that allows organizations to enforce access controls based on specific conditions. These conditions may include user risk, device compliance, location, application, or session context. The primary goal is to balance security with productivity by allowing access only when certain risk factors are mitigated.

Option A, Microsoft Information Protection, focuses on classifying and protecting sensitive data rather than enforcing access policies. Option C, Privileged Identity Management (PIM), manages privileged accounts, providing just-in-time access and monitoring, but does not enforce general access policies. Option D, Azure AD Identity Protection, detects risky user behavior and compromised accounts but does not directly enforce access restrictions; instead, it provides signals that Conditional Access can act upon.

Conditional Access policies can include enforcing multi-factor authentication (MFA) for risky sign-ins, restricting access to certain geographic locations, or allowing only compliant devices to access sensitive apps. This granular approach helps prevent unauthorized access and reduces the likelihood of security breaches.

Organizations can also create policies that differentiate between high-risk and low-risk users. For example, an administrator can require MFA for users signing in from untrusted locations while allowing seamless access for low-risk users on managed devices. This flexibility improves user experience without compromising security.

Conditional Access integrates with other Microsoft security solutions. Signals from Microsoft Defender for Identity, Azure AD Identity Protection, and Microsoft Endpoint Manager inform policies, allowing administrators to respond dynamically to emerging threats. Additionally, logs from Conditional Access can be monitored and analyzed in Microsoft Sentinel for further insights into access patterns and security incidents.

Conditional Access is the core tool for enforcing access policies in Microsoft 365 based on conditions like user risk, device state, and location. It complements detection and risk-assessment solutions by providing actionable enforcement that reduces exposure to security threats.

Question 13

Which of the following Microsoft services is primarily used to manage and reduce the risks associated with privileged accounts?

A) Azure AD Privileged Identity Management
B) Microsoft Information Protection
C) Microsoft Sentinel
D) Microsoft Compliance Manager

Answer: A)

Explanation:

The correct answer is A) Azure AD Privileged Identity Management.

Privileged Identity Management (PIM) is a component of Azure Active Directory designed to manage, control, and monitor privileged accounts in an organization. Privileged accounts, such as administrators, pose significant security risks if compromised because they have elevated access to critical resources. PIM helps mitigate these risks by providing just-in-time (JIT) access, requiring approval workflows, and enforcing multi-factor authentication (MFA) before granting temporary elevated permissions.

Option B, Microsoft Information Protection, focuses on classifying and protecting sensitive data rather than managing privileged accounts. Option C, Microsoft Sentinel, is a SIEM tool for monitoring security events and responding to threats but does not directly manage privileged access. Option D, Microsoft Compliance Manager, assesses compliance posture and manages regulatory requirements, which does not include active management of privileged accounts.

PIM allows administrators to configure alerts and workflows for high-risk activities. For instance, it can notify security teams when a privileged role is activated, track the duration of elevated access, and automatically revoke privileges after a specified period. This reduces the attack surface by ensuring that elevated permissions are granted only when necessary.

PIM also provides access reviews, which allow organizations to periodically assess who has privileged access and whether it is still required. This is essential for compliance with regulatory standards, as auditors often require evidence that privileged access is controlled, limited, and regularly reviewed.

The solution integrates with other Microsoft security tools such as Conditional Access, Microsoft Sentinel, and Azure AD Identity Protection. Signals from these tools can be used to enforce policies, monitor for suspicious activity, and automate responses. For example, if Identity Protection detects a compromised account attempting to activate a privileged role, PIM can block the activation until further verification is performed.

Azure AD Privileged Identity Management is the core solution for managing privileged accounts, providing just-in-time access, monitoring, and governance. It is an essential part of a secure Microsoft 365 environment, ensuring that elevated privileges do not become a point of compromise.

Question 14

Which of the following best describes Microsoft Information Protection sensitivity labels?

A) Mechanisms to encrypt files, restrict access, and apply classification
B) Policies to enforce conditional access based on risk
C) Tools to detect identity-based threats on-premises
D) Dashboards to track compliance posture

Answer: A)

Explanation:

The correct answer is A) Mechanisms to encrypt files, restrict access, and apply classification.

Sensitivity labels in Microsoft Information Protection (MIP) are used to classify and protect organizational data. These labels enable organizations to apply rules to files and emails based on their sensitivity level, such as Confidential, Highly Confidential, or Public. Once applied, labels can enforce encryption, restrict access to specific users or groups, and prevent certain actions like copying or forwarding.

Option B, enforcing conditional access based on risk, is handled by Azure AD Conditional Access. Option C, detecting identity-based threats, is performed by Microsoft Defender for Identity. Option D, dashboards for compliance posture, is a function of Microsoft Compliance Manager. Sensitivity labels specifically address data classification and protection.

Labels can be applied manually by users or automatically based on content inspection. Automatic labeling leverages policies that scan for sensitive information types, such as credit card numbers, personally identifiable information (PII), or intellectual property. This automation ensures consistent application of security controls and reduces human error.

Sensitivity labels also integrate with Microsoft 365 applications like Word, Excel, Outlook, SharePoint, and Teams, allowing protection to travel with the content. For example, an email labeled as Confidential can be encrypted and restricted so that only authorized recipients can open it, even if it leaves the organization.

Moreover, sensitivity labels provide audit and reporting capabilities. Administrators can track how labels are applied, monitor policy violations, and generate compliance reports for regulatory requirements. This visibility ensures that sensitive data is handled in accordance with organizational policies and external regulations.

Microsoft Information Protection sensitivity labels are essential for classifying, protecting, and controlling access to organizational data. They provide encryption, access restrictions, and classification, ensuring sensitive data remains secure both inside and outside the organization.

Question 15

Which feature of Azure AD Identity Protection helps organizations detect compromised accounts and risky sign-ins?

A) Risk detection policies
B) Sensitivity labels
C) Endpoint detection and response
D) Compliance score

Answer: A)

Explanation:

The correct answer is A) Risk detection policies.

Azure AD Identity Protection provides tools to detect and respond to identity-related security risks. Risk detection policies analyze sign-in activity and user behavior to identify suspicious patterns that may indicate compromised accounts. These patterns include atypical sign-in locations, anonymous IP addresses, impossible travel between sign-ins, malware-infected devices, and leaked credentials.

Option B, sensitivity labels, is part of Microsoft Information Protection and deals with classifying and protecting data, not detecting risky sign-ins. Option C, endpoint detection and response, is a feature of Microsoft Defender for Endpoint that monitors devices for threats rather than monitoring identities. Option D, compliance score, is a feature of Compliance Manager and measures adherence to regulatory requirements, unrelated to identity risk.

Risk detection policies in Azure AD Identity Protection can trigger automated responses. For example, if a risky sign-in is detected, the policy can require multi-factor authentication, block access, or force a password reset. Administrators can define thresholds for risk events, ensuring that appropriate mitigation actions are taken consistently and promptly.

Identity Protection also provides a dashboard with insights into risky users, risky sign-ins, and policy effectiveness. This helps security teams monitor trends, prioritize investigations, and demonstrate compliance with internal or external security standards. By integrating with Conditional Access, Identity Protection allows organizations to enforce real-time access restrictions based on detected risks, creating a proactive security posture.

The solution is particularly useful in modern hybrid work environments where users access cloud applications from multiple devices and locations. Automated detection and remediation reduce the potential impact of compromised accounts and enhance overall security without introducing significant friction for legitimate users.

Risk detection policies in Azure AD Identity Protection help organizations identify compromised accounts and risky sign-ins. Combined with Conditional Access and automation, these policies enable rapid response to identity threats while maintaining user productivity.