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Sensitivity Labels and Data Classification in MS-102

Deep Dive Cert Sensei Team 2026-09-02 10 min read

Sensitivity labels in Microsoft Purview allow organizations to classify and protect their data across Microsoft 365. These labels travel with the data and can enforce protection settings like encryption, watermarks, and access restrictions.

#Sensitivity Labels #Data Classification #Microsoft Purview #MS-102 #Encryption

The Fundamentals of Sensitivity Labels

Sensitivity labels are the foundation of Microsoft Information Protection. They provide a visual marker to users and apply underlying protection mechanisms to documents and emails.

The MS-102 exam tests your ability to create, publish, and manage these labels across different platforms and devices.

Configuring Label Policies

To make labels available to users, they must be published via a label policy. These policies dictate which users see which labels and can enforce rules like requiring justification to downgrade a label.

You must understand how label priorities work, especially when a user is subject to multiple label policies.

Auto-labeling Capabilities

Purview supports auto-labeling based on sensitive information types, such as credit card numbers or custom exact data matches. This ensures that sensitive data is protected even if a user forgets to apply a label.

Auto-labeling can be applied at rest (for data already in SharePoint/OneDrive) or in motion (as emails are being sent).

Studying for Classification Questions

Questions on sensitivity labels can be complex, often asking you to identify what happens when encrypted files are shared externally.

Using high-quality practice exams like Cert Sensei is an excellent strategy to validate your understanding of encryption and label behaviors.

❓ Frequently Asked Questions

What do sensitivity labels do?

They classify and protect data with settings like encryption, watermarks, and access restrictions, traveling with the file.


How are sensitivity labels made available to users?

They must be published via a label policy, which dictates which users see which labels and enforces rules.


Can sensitivity labels be applied automatically?

Yes, Purview supports auto-labeling based on sensitive information types, both at rest and in motion.

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