SC-900 Microsoft Security Compliance and Identity Fundamentals Questions and Answers

Box 1: Yes

The MailItemsAccessed event is a mailbox auditing action and is triggered when mail data is accessed by mail protocols and mail clients.

Box 2: No

Basic Audit retains audit records for 90 days.

Advanced Audit retains all Exchange, SharePoint, and Azure Active Directory audit records for one year. This is accomplished by a default audit log retention policy that retains any audit record that contains the value of Exchange, SharePoint, or AzureActiveDirectory for the Workload property (which indicates the service in which the activity occurred) for one year.

Box 3: yes

Advanced Audit in Microsoft 365 provides high-bandwidth access to the Office 365 Management Activity API.

Azure Active Directory (Azure AD) is a cloud-based user identity and authentication service. Reference:

https://docs.microsoft.com/en-us/microsoft-365/enterprise/about-microsoft-365-identity?view=o365-worldwide

Microsoft documents for Defender for Endpoint (MDE) describe it as an enterprise endpoint security platform that supports Windows 10/11, Windows Server, Linux, macOS, and mobile platforms (Android and iOS/iPadOS). The platform provides threat and vulnerability management, attack surface reduction, next-generation protection, endpoint detection and response, and automated investigation and remediation across those supported operating systems. Because MDE supports Windows client operating systems and servers, it can also be used on Azure virtual machines that run supported Windows versions; onboarding methods include local scripts, Microsoft Endpoint Manager, or cloud integrations, allowing VM endpoints to receive the same protection and EDR capabilities as physical devices.

By contrast, malware scanning in SharePoint Online, OneDrive, and Microsoft Teams is provided by Microsoft Defender for Office 365 (Safe Attachments for SharePoint, OneDrive, and Teams)—a different service within the Microsoft 365 Defender family. This service analyzes files as they are uploaded or shared to detect and block malicious content in collaboration workloads, which is outside the scope of MDE’s endpoint-focused protections. Therefore: Android protection (Yes), Azure VMs running Windows 10 (Yes), and SharePoint Online anti-virus protection by MDE (No, handled by Defender for Office 365).

You can use an Azure network security group to filter network traffic to and from Azure resources in an Azure virtual network. A network security group contains security rules that allow or deny inbound network traffic to, or outbound network traffic from, several types of Azure resources. For each rule, you can specify source and destination, port, and protocol.

eDiscovery

In Microsoft Purview, eDiscovery is the purpose-built compliance solution for legal and investigative workflows. Microsoft’s SCI materials describe eDiscovery as the tool that enables organizations to identify, preserve/hold, collect, review, and export potentially relevant content across Microsoft 365 services. Official guidance explains that eDiscovery (Standard) “provides search, hold, and export capabilities” for content in Exchange, SharePoint, OneDrive, Teams, and more. Another description states that eDiscovery (Premium) helps you “identify, preserve, collect, review, analyze, and export content” for legal matters and internal investigations. These capabilities are designed to support the eDiscovery lifecycle by allowing admins and case managers to: create cases, define custodians and non-custodial data sources, run targeted searches, apply legal holds to prevent data alteration or deletion, perform review and analytics, and export responsive data packages for counsel or regulators.

By contrast, Data Loss Prevention (DLP) protects sensitive information from accidental or inappropriate sharing; Customer Lockbox governs Microsoft engineer access to your data for support; and resource locks protect Azure resources from accidental deletion or modification. Therefore, the Microsoft SCI control that is explicitly used to identify, hold, and export electronic information for an investigation is Microsoft Purview eDiscovery.

Microsoft Defender for Office 365 includes Safe Attachments, a protection that “checks attachments in a secure, virtual environment to detect malicious behavior.” In Microsoft’s guidance, Safe Attachments is described as part of the anti-malware pipeline that “routes messages with attachments to a detonation chamber; if no suspicious activity is detected, the message is released to the recipient, and if malicious behavior is found, the attachment is blocked or removed.” Administrators can choose Block, Replace, Dynamic Delivery, or Monitor actions. The Dynamic Delivery option specifically supports the use case in the question: the email body is delivered while the attachment is scanned, and “the attachment is automatically reattached and forwarded to the recipient only when it is determined to be safe.” This capability is unique to Defender for Office 365’s Safe Attachments, not to be confused with endpoint antivirus or identity tools. Defender Antivirus protects Windows devices, Defender for Identity secures on-premises identities, and Defender for Endpoint focuses on endpoint detection and response. Therefore, the Microsoft service you use to scan email attachments and forward them only when clean is Microsoft Defender for Office 365 (Safe Attachments).

Microsoft Cloud App Security (now Microsoft Defender for Cloud Apps) is Microsoft’s CASB that “discovers and controls shadow IT,” integrates with identity and endpoint signals, and enforces data protection in SaaS and custom apps. SCI materials describe three core use cases relevant here: (1) Discovery and control of shadow IT by analyzing network logs and app usage, rating risk, and applying governance—matching A. (2) Protect sensitive information hosted anywhere in the cloud via policies such as DLP, information protection label awareness, and integration with apps through API connectors—matching C. (3) Prevent data leaks to noncompliant apps and limit access to regulated data using Conditional Access App Control and session controls that can block download, apply protections, or monitor in real time—matching E. In contrast, secure connections to Azure virtual machines are provided by Azure Bastion, not the CASB (eliminating B), and pass-through authentication to on-premises apps is delivered by Azure AD features such as Azure AD Application Proxy or PTA (not Cloud App Security), eliminating D.

Explanation

Azure AD Password Protection detects and blocks known weak passwords and their variants, and can also block additional weak terms that are specific to your organization.

With Azure AD Password Protection, default global banned password lists are automatically applied to all users in an Azure AD tenant. To support your own business and security needs, you can define entries in a custom banned password list.

In Microsoft guidance, network segmentation and isolation are core security principles. Azure virtual networks (VNets) are “a fundamental building block… that enable isolation and segmentation of resources,” and multiple VNets are commonly used to separate environments, business units, or security boundaries. This aligns with Zero Trust and SCI guidance that recommends isolating workloads to reduce blast radius and to apply least privilege and policy-based controls per boundary. Microsoft also emphasizes governance alignment, stating that enterprises should structure Azure resources so that policies, RBAC, and compliance requirements can be applied at appropriate scopes (management group, subscription, resource group, or network boundary). Deploying multiple VNets supports these goals by enabling per-environment policy assignment (for example, dev/test vs. production), differentiated security controls (such as NSGs, ASGs, and firewalls), and independent address spaces to prevent overlap across organizations or regions. Options A and D are not primary drivers: budgeting is handled at subscription/resource group scopes rather than VNet count, and a single VNet can already host and connect many resource types; creating multiple VNets is therefore primarily about governance and isolation that reduce risk and enforce organizational policies.

Microsoft’s shared-responsibility model states that the cloud provider secures the cloud, while the customer secures what they put in the cloud. The Azure Security documentation explains: “Regardless of the type of deployment, you always retain responsibility for your data, endpoints, accounts, and access management.” This applies to IaaS, PaaS, and SaaS, so statement 3 is Yes because the organization is always accountable for the security of information and data.

For SaaS, Microsoft describes that customers “don’t manage or control the underlying cloud infrastructure—including network, servers, operating systems, or even individual application capabilities” and that the provider handles service maintenance and updates. In SaaS, tasks like patching or applying service packs to the application code are owned by the service provider, while the customer focuses on data, identity, and access. Therefore, statement 1 is No.

For IaaS, Microsoft notes the provider manages the physical estate: “Microsoft is responsible for the physical hosts, network, and datacenter facilities,” while the customer configures and secures the guest OS, applications, and network controls within their subscription. Thus, managing the physical network is the cloud provider’s duty, making statement 2 Yes.

These SCI principles are foundational to Microsoft Learn/Docs guidance on Azure’s shared responsibility: provider—“security OF the cloud”; customer—“security IN the cloud,” with data protection always remaining the customer’s responsibility.

Microsoft’s SCI learning content describes the Microsoft 365 Defender portal as a unified security operations experience that surfaces security posture and active threats on a card-based dashboard. In the overview of the portal, Microsoft explains that the home page “presents key security information in dashboard cards,” and that among these cards are summaries that highlight risky entities such as “Users at risk” and “Devices at risk.” These cards provide quick, actionable visibility for analysts by aggregating detections and exposure data across Microsoft Defender services (for identities and endpoints). The guidance emphasizes that the portal “correlates signals across identities, endpoints, email, and applications” and that security teams can use the dashboard cards to pivot directly into incidents and investigations from “Users at risk” or “Devices at risk” to take containment or remediation actions.

By contrast, Compliance Score is part of Microsoft Purview Compliance Manager, not the Microsoft 365 Defender portal; Service Health and User Management are functions of the Microsoft 365 admin center. Therefore, the cards you’ll find on the Microsoft 365 Defender portal that match the choices provided are Users at risk and Devices at risk.

Within Microsoft Purview, Insider Risk Management is the solution that is explicitly designed to detect activities such as IP theft and data leakage. Microsoft describes it as a compliance solution that correlates many user and system signals to identify potentially malicious or inadvertent insider risks, including leaks of sensitive data and data spillage.

Organizations create Insider Risk Management policies that watch for risky behaviors such as unusual file downloads, copying data to removable media, or sharing sensitive information to external locations. When configured with templates like Data leaks, these policies can use high-severity alerts from Data Loss Prevention (DLP) policies as triggers, so that suspected data-leak events automatically generate alerts and cases for investigation. This workflow lets investigators quickly triage, investigate, and remediate possible data-exfiltration incidents.

The other options serve different purposes. Compliance Manager evaluates and tracks compliance posture against regulations and internal controls, rather than monitoring user behavior for leaks. Communication compliance focuses on inappropriate or non-compliant messages (such as harassment or improper sharing in chats and email). eDiscovery is used to find and preserve existing content for legal or investigative cases, not for proactive detection of leakage as it occurs.

Therefore, the Microsoft Purview solution used to identify data leakage is Insider Risk Management.

Microsoft’s identity platform (Microsoft Entra ID, formerly Azure AD) supports built-in and custom directory roles. The official guidance states that you can “create your own custom roles to grant permissions for management of Microsoft Entra resources,” and those roles consist of specific role permissions that you select to tailor least-privilege administration. The documentation also lists Global administrator (formerly Company Administrator) as a built-in role that “has access to all administrative features” and can delegate role assignments, reset passwords for all users, and manage identity settings across the tenant. Regarding assignments, Microsoft is explicit that role assignment is many-to-many: administrators can “assign one or more roles to a user,” and the user’s effective permissions are the union of the privileges from all assigned roles. Consequently, (1) creating custom roles is supported (Yes), (2) Global administrator is indeed a defined Azure AD/Microsoft Entra role (Yes), and (3) a user being limited to only one role is incorrect (No) because multiple role assignments to the same user are permitted and commonly used to implement least privilege and separation of duties.

Box 1: Yes

Azure AD supports custom roles.

Box 2: Yes

Global Administrator has access to all administrative features in Azure Active Directory. Box 3: No

In Microsoft’s shared responsibility model, responsibilities vary by service type. For IaaS (for example, Azure Virtual Machines), Microsoft states that it is responsible for protecting and maintaining the cloud infrastructure that runs customer workloads, while customers secure what they deploy in that infrastructure. Microsoft’s guidance explains that Microsoft “operates and secures the datacenters, physical hosts, networking, and the virtualization fabric,” and handles the underlying platform maintenance, including “hardware and firmware” that support those hosts. Conversely, customers are responsible for what runs inside their VM: “the guest operating system (including updates and security configuration), applications, identity, and data.”

Applied to the options in this question:

Updating the operating system and updating installed applications are customer tasks because they are inside the guest VM.

Configuring permissions for shared folders is also a customer responsibility because it’s an OS/application configuration within the guest.

Updating the firmware of the disk controller belongs to Microsoft, because firmware and hardware on the physical hosts (including storage controllers) are part of the infrastructure of the cloud that Microsoft manages and secures.

This aligns with SCI study materials that summarize: Microsoft secures “the security of the cloud” (physical datacenter, hosts, network, and hypervisor/firmware), while customers secure “security in the cloud” (guest OS, apps, and data).

Microsoft 365 Information Barriers are compliance policies used “to prevent certain segments of users from communicating or collaborating with each other.” In Microsoft’s guidance, IB policies are designed for scenarios like insider trading restrictions, M&A deal rooms, or research–sales separation, where it’s necessary to block chats, calls, and collaboration between defined user segments. The documentation explains that when IB policies are in place, “users in the blocked segments cannot search, discover, or communicate with each other in Microsoft Teams,” and IB v2 extends these controls to additional collaboration workloads such as SharePoint and OneDrive. By contrast, email restrictions in Exchange Online are addressed through mail flow rules or other Exchange features, not information barriers, and restricting unauthenticated access or external sharing is handled by identity access controls and sharing settings, not IB. Therefore, the specific use case is restricting Microsoft Teams chats (and related collaboration) between certain groups within an organization.

access and application control

In Microsoft Defender for Cloud, the capabilities grouped as access and application control are designed to harden Azure virtual machines by limiting both what can access a VM and what can run on it. Microsoft’s documentation explains that Adaptive application controls “help you control which applications can run on your VMs by allowing only known-safe applications,” which directly helps block malware and other unwanted applications. In the same family, Just-in-time (JIT) VM access “reduces exposure to attacks by locking down inbound traffic to your VMs and opening only the required ports, for approved users, for a limited time,” thereby reducing the network attack surface. These capabilities are surfaced in Defender for Cloud recommendations and policies to enforce least privilege at the network edge and on the endpoint execution layer.

By contrast, Cloud Security Posture Management (CSPM) provides continuous assessment and secure-score-driven recommendations but isn’t the control that actively blocks applications or time-bounds inbound access. Container security targets container images and runtimes, and vulnerability assessment identifies software vulnerabilities but doesn’t enforce allow-listing or time-bound access. Therefore, the correct completion is access and application control, which encompasses Adaptive application controls and JIT VM access to protect VMs from unwanted apps and minimize exposed network surface.

Microsoft Defender for Identity (formerly Azure ATP) is designed to protect on-premises identity infrastructures by analyzing signals from Active Directory Domain Services (AD DS). In Microsoft’s SCI guidance, Defender for Identity is described as a “cloud service that uses sensors installed on your domain controllers to monitor and analyze user activities and information across your on-premises Active Directory.” The sensors “collect authentication, replication, and other security-relevant events and network traffic,” enabling analytics to detect techniques such as Pass-the-Hash, Pass-the-Ticket, Golden Ticket, reconnaissance, lateral movement, and domain dominance. The product’s purpose is to surface advanced threats, compromised identities, and malicious insider actions by continuously profiling and learning from AD DS behavior and security events.

While Defender for Identity integrates with other Microsoft security solutions (for example, Microsoft 365 Defender and Microsoft Defender for Cloud Apps) to enrich investigations, it does not rely on Azure Active Directory (Microsoft Entra ID) signals for its core detections, nor does it collect telemetry from Azure AD Connect itself. Instead, its foundational telemetry source is on-premises AD DS domain controllers via lightweight sensors, which provide the deep authentication and directory-service context required to identify sophisticated identity-based attacks in hybrid environments.

Microsoft’s sensitivity labels (Microsoft Purview Information Protection) support user-driven labeling: “Users can manually apply sensitivity labels to files and emails” and organizations can also configure automatic or recommended labeling. This confirms that end users are permitted to choose a label themselves when policy allows. Microsoft also clarifies the cardinality for items: “A document or email can have only a single sensitivity label applied to it at a time.” Therefore, applying multiple sensitivity labels to the same file is not supported (labels are mutually exclusive on a given item). In addition to classification, labels can enforce protection and visual markings: “When you configure a sensitivity label, you can add protection settings such as encryption and content marking (headers, footers, and watermarks).” Word, Excel, and PowerPoint honor these content markings, so a label can automatically stamp a watermark on a Word document while embedding the label metadata for persistent protection. Together, these authoritative statements from Microsoft’s SCI documentation establish the correct responses: Yes (manual application), No (only one label per file), and Yes (labels can apply watermarks).

Microsoft states that Azure AD Multi-Factor Authentication “adds a second form of verification” to sign-ins and supports multiple verification methods. The documented methods include Microsoft Authenticator app notifications or verification codes, text message (SMS) codes, and phone call verification. In Microsoft’s description, users can approve a push notification in the Microsoft Authenticator app or enter a code from the app; they can receive a text message containing a verification code; or they can answer a phone call to complete the challenge. Email verification and security questions are not listed as supported MFA methods for Azure AD sign-ins and are not valid second factors in Azure AD MFA. Consequently, the correct methods from the options provided are Phone call, Text message (SMS), and Microsoft Authenticator app. These align with Azure AD’s core MFA capabilities used in Conditional Access and per-user MFA to strengthen authentication beyond the password and to meet compliance and security requirements for strong user verification.

In Microsoft identity and access scenarios, federation is explicitly defined as a mechanism to create trust between autonomous organizations so that identities authenticated in one can be accepted by another. Microsoft describes this as: “Federation is a collection of domains that have established trust.” In a federation, “this trust relationship lets each organization accept the other’s user authentication” and enables access to resources without the need to duplicate user accounts or require separate credentials. Within Azure AD/Microsoft Entra and AD FS guidance, Microsoft further explains that federation enables “claims-based access across security boundaries” and “allows users to access applications in a partner organization using their existing credentials.” These statements underline that the purpose of federation is to establish a trust relationship across identity providers or directories, not to provide multi-factor authentication, synchronize accounts, or build network tunnels. MFA is an authentication strength that can be applied on top of federated sign-in, user account synchronization is handled by services like Microsoft Entra Connect (Azure AD Connect), and VPNs provide network connectivity, not identity trust. Therefore, the completion that aligns with Microsoft SCI documentation is that federation establishes a trust relationship between organizations.

The recommended way to enable and use Azure AD Multi-Factor Authentication is with Conditional Access policies. Conditional Access lets you create and define policies that react to sign-in events and that request additional actions before a user is granted access to an application or service.

Microsoft’s hybrid identity guidance explains that Microsoft Entra Connect (formerly Azure AD Connect) is the tool used to synchronize identities from on-premises AD DS to a Microsoft Entra tenant, enabling hybrid identity. Microsoft states that hybrid identity is achieved by connecting your on-premises directory with your cloud directory so users have a single identity to access both environments. This does not require two Microsoft 365 tenants; rather, it requires one Microsoft Entra tenant integrated with your on-premises AD DS. For authentication models—Password Hash Synchronization (PHS), Pass-through Authentication (PTA), or federation (AD FS)—Microsoft specifies that directory synchronization is required so that user objects exist in Entra ID and can authenticate to cloud services while maintaining a consistent identity. Thus, Entra Connect is used to implement the synchronization underpinning hybrid identity; two M365 tenants are unnecessary; and synchronization between AD DS and Entra ID is required for authenticating hybrid identities across Microsoft cloud services.

To on-board Azure Sentinel, you first need to connect to your security sources. Azure Sentinel comes with a number of connectors for Microsoft solutions, including Microsoft 365 Defender solutions, and Microsoft 365 sources, including Office 365, Azure AD, Microsoft Defender for Identity, and Microsoft Cloud App Security, etc.

In Microsoft Purview Information Protection, pre-trained (Microsoft-provided) trainable classifiers are designed to automatically recognize specific categories of content by learning from examples rather than relying only on patterns or keywords. Microsoft’s guidance explains that trainable classifiers “look for data by learning from examples,” and that Microsoft supplies a catalog of “pre-trained classifiers that you can use immediately in your tenant.” The documentation explicitly lists content types these classifiers can recognize, including “Resumes,” along with other categories such as Source code, Threat and harassment, and more. Because they’re already trained by Microsoft, you can use them “to identify and classify items across SharePoint, OneDrive, and Exchange,” and then take actions such as auto-labeling or enforcing DLP policies based on the classifier match.

By contrast, Content explorer is a reporting tool that lets you view where sensitive info types/labels were found; it doesn’t identify resumes on its own. Activity explorer shows events like DLP policy matches over time. eDiscovery is used for legal hold, search, and review, not for semantic content identification. Therefore, to identify documents that are employee resumes, the correct Microsoft compliance feature is the pre-trained (Microsoft-provided) trainable classifier for Resumes.

In Microsoft identity terminology, authentication is the step that proves who the user is when they attempt to sign in. Microsoft Learn defines it plainly: “Authentication is the process of proving the identity of a user, device, or service.” By contrast, “Authorization is the process of determining what a user, device, or service can do.” During sign-in to Microsoft Entra ID (formerly Azure AD), “the identity provider validates credentials and, upon successful authentication, issues tokens that applications use to grant access.” Microsoft further explains the available methods: “Microsoft Entra ID supports multiple authentication methods, including passwords, multi-factor authentication, FIDO2 security keys, certificate-based authentication, and federated authentication.”

Auditing and administration are not the mechanisms that verify identity at sign-in. Auditing “records security-relevant events for investigation and compliance,” while administration “refers to configuring and managing identities, access policies, and settings.” Therefore, in the sentence “When users sign in, _____ verifies their credentials to prove their identity,” the correct completion is authentication, because it is the control that validates the user’s credentials and establishes identity before any authorization decisions are made.

In Microsoft 365 Defender, security signals from across Microsoft 365 services are raised as alerts. Microsoft’s documentation defines an incident as “a collection of correlated alerts” that represent the end-to-end story of an attack. The incident object aggregates the related signals, entities, and evidence so analysts can triage and remediate holistically rather than handling individual alerts in isolation. Microsoft further explains that incidents “group together related alerts, assets, users, and evidence” to reduce noise and provide context for investigation, and that automated correlation “helps SOCs focus on what matters most” by stitching alerts from Defender for Endpoint, Defender for Office 365, Defender for Identity, and Microsoft Defender for Cloud Apps into one case. Within an incident, analysts see a timeline, impacted assets and users, alert details, and recommended actions, and they can trigger response measures (for example, isolate device, block URL/file, or disable user). This contrasts with events (raw telemetry), vulnerabilities (exposure findings managed by Defender Vulnerability Management), and Microsoft Secure Score improvement actions (posture recommendations). Therefore, in the Microsoft 365 Defender portal, an incident is specifically a collection of correlated alerts, designed to streamline investigation and coordinated remediation across the Microsoft 365 security stack.

Security defaults make it easy to protect your organization with the following preconfigured security settings:

Requiring all users to register for Azure AD Multi-Factor Authentication.

Requiring administrators to do multi-factor authentication.

Blocking legacy authentication protocols.

Requiring users to do multi-factor authentication when necessary.

Protecting privileged activities like access to the Azure portal.

Microsoft Purview Insider Risk Management is designed to identify, investigate, and act on risky activities by internal users—for example data exfiltration, data theft, policy violations, and user sentiments/signals that may indicate insider risk. SCI documentation explains that Insider Risk policies analyze signals such as file downloads, copying to USB, sharing to personal cloud, printing, or anomalous activity following events like performance warnings or resignation notices. Because it focuses on insider behaviors, it is not used to detect external threat vectors like phishing scams; those are addressed by Microsoft Defender for Office 365 and related anti-phishing protections—hence statement 1 is No. The solution is accessed in the Microsoft Purview (formerly Microsoft 365) compliance center under Insider risk management, where admins configure policies, alerts, and workflows—so statement 2 is Yes. Finally, its core purpose includes detecting and investigating potential data leaks by disgruntled or departing employees, using built-in policy templates (e.g., Data theft by departing employee, Data leaks), making statement 3 Yes.

In Microsoft Sentinel, automation of routine or repetitive SOC tasks is delivered through playbooks. Microsoft’s Sentinel guidance defines playbooks as “collections of procedures that can be run from Microsoft Sentinel in response to an alert or incident.” They are “built on Azure Logic Apps” and enable teams to “automate and orchestrate responses to threats” such as enriching incidents, opening tickets, notifying responders, quarantining entities, or blocking indicators. The documentation further clarifies that automation rules can “trigger playbooks automatically based on analytics alerts or incident conditions,” allowing consistent, scalable actions without manual intervention. By contrast, workbooks provide “data visualization and reporting” for analysis; hunting search-and-query tools (built on KQL) are used to “proactively hunt for threats”; and deep investigation tools assist analysts during incident investigation. Therefore, when the goal is to automate common tasks—for example, sending incident notifications, enriching with threat intelligence, or creating tickets in ITSM—the correct capability in Microsoft Sentinel is playbooks, because they encapsulate repeatable response procedures and can be executed automatically via automation rules or manually from incidents, alerts, or entities.

In Microsoft’s Security, Compliance, and Identity learning content for Microsoft Defender for Cloud, the service is described as providing ongoing posture management and threat protection. The official description states that Defender for Cloud “continuously assesses your resources to identify security misconfigurations and weaknesses” and “continuously discovers and evaluates resources” across your subscriptions. The recommendations and secure-score updates are produced as the platform “continuously analyzes your environment using security policies and analytics,” surfacing issues the moment they’re detected and mapping them to remediation guidance. This continuous assessment model underpins Defender for Cloud’s cloud security posture management (CSPM) capability and ensures that newly created or modified resources are evaluated without waiting for a scheduled job. By design, there is no fixed interval (such as hourly, every 15 minutes, or daily) required to trigger assessments—policy-driven evaluation and data collection run as changes occur and signals are received. Therefore, the sentence “Microsoft Defender for Cloud assesses Azure resources ____ for security issues” is correctly completed with continuously, reflecting Microsoft’s emphasis on persistent, real-time security posture evaluation rather than periodic scans.

Microsoft Purview Data Loss Prevention (DLP) defines supported service locations for policy enforcement. The Microsoft Learn/SCI materials state that DLP policies “help protect sensitive information across Microsoft 365 services” and can be scoped to common workloads. In the DLP overview, Microsoft explicitly lists the core cloud locations: “You can create DLP policies that protect content in Exchange Online, SharePoint Online, and OneDrive for Business.” The Teams workload is also included: “DLP can monitor and take protective actions on Microsoft Teams chat and channel messages.” These statements confirm that applying a DLP policy to Exchange Online email (A), OneDrive accounts (B), and Teams chat and channel messages (D) is supported.

By contrast, Exchange Online public folders (C) are not listed among supported DLP locations in the SCI documentation, and Viva Engage (formerly Yammer) (E) is not a standard Microsoft Purview DLP location in the core list above (Viva Engage has separate governance and communication compliance controls). Therefore, from the supported locations enumerated in Microsoft’s DLP guidance, the correct answers are Exchange Online email, OneDrive accounts, and Teams chat and channel messages.

In Microsoft 365 information protection guidance, Microsoft explains that sensitivity labels are persistent: when a label is applied to a file or email, the label information is stored as metadata so that the protection settings “travel with the content” wherever it’s saved or shared. Labels can apply encryption, content marking (headers, footers, watermarks), and DLP-friendly metadata, but encryption is optional—some labels only classify/mark without encryption. Microsoft also emphasizes that labels are not restricted to predefined categories; administrators can create custom label names, descriptions, and scoped policies to reflect an organization’s taxonomy (for example, Public, Confidential, Highly Confidential, or industry-specific categories). Because the defining property that always applies is that the label remains attached to the content and enforces configured policy across Microsoft 365 services and supported third-party locations, the accurate characteristic is persistent. Options “encrypted” (not always) and “restricted to predefined categories” (incorrect—labels are customizable) do not universally describe sensitivity labels.

Microsoft sets out clear privacy principles for Microsoft 365 and Microsoft cloud services. In Microsoft’s privacy commitments, Microsoft states that customers control their data: “You control your data.” Microsoft also pledges transparency about data practices: “We are transparent about data collection and use.” These two commitments are among the core privacy principles articulated across Microsoft 365 privacy and Microsoft Purview documentation, which emphasize customer choice, clear explanations of data processing, and admin capabilities to access, export, and delete data. Additional Microsoft privacy principles often listed alongside these include security of your data, strong legal protections, no content-based targeting, and benefits to you, but the key point for this question is that Control and Transparency are explicitly called out as privacy principles.

By contrast, shared responsibility is not a privacy principle; it is a cloud security model used in Azure/Microsoft cloud guidance. That model explains that security is a shared responsibility between Microsoft (for the cloud infrastructure) and the customer (for their data, identities, endpoints, and configurations). It describes how duties are divided for protecting services and workloads, not a privacy promise to end users. Therefore, the correct selections are Yes for Control and Transparency, and No for Shared responsibility.

Microsoft Defender for Endpoint includes Automated investigation and remediation (AIR) and Attack surface reduction (ASR) as core capabilities. Microsoft’s guidance states that AIR “uses inspection algorithms and playbooks to examine alerts, determine if they are malicious, and then take remediation actions such as stopping processes, quarantining files, and rolling back changes.” It is designed to “reduce the volume of alerts that require analyst attention and to remediate threats at machine speed across your estate,” helping security teams contain and fix issues without manual intervention.

Defender for Endpoint also provides attack surface reduction features to proactively limit exposure. The Microsoft learn materials describe that ASR “helps organizations minimize areas that attackers can exploit,” and includes “attack surface reduction rules, network protection, web protection, application control (Windows Defender Application Control), and controlled folder access.” These controls “block or constrain risky behaviors and common attacker techniques,” thereby preventing many initial compromise and lateral-movement attempts before they generate incidents.

By contrast, transport encryption is a general platform/security baseline capability rather than a specific Defender for Endpoint feature, and shadow IT detection is addressed through Microsoft Defender for Cloud Apps (App discovery), which can use Defender for Endpoint network signals but is not itself a native MDE capability. Therefore, the two correct capabilities of Microsoft Defender for Endpoint are Automated investigation and remediation and Attack surface reduction.

According to Microsoft’s Security, Compliance, and Identity (SCI) documentation and learning paths (specifically SC-900, SC-300, and Azure AD Identity Protection modules):

“Conditional Access policies in Azure AD are the primary method for enforcing access controls based on specific conditions such as user, group, location, device compliance, and application.”

In this case, the organization can configure a Conditional Access policy that targets a specific Azure AD group and requires MFA as a condition before access is granted. The typical policy setup includes:

Assignments: Target users or groups (e.g., “Finance Department Users”).

Cloud apps or actions: Specify which applications or services are protected (e.g., Microsoft 365).

Access controls: Set the control to “Require multi-factor authentication.”

Microsoft’s SCI training materials further state:

“Conditional Access enables administrators to enforce MFA for specific users, groups, or scenarios. It provides flexibility to protect access without enabling MFA globally for all users.”

Other options explained:

Azure Policy (A) applies to Azure resources, not user authentication.

Communication compliance policy (B) monitors message content for compliance violations.

User risk policy (D) is part of Azure AD Identity Protection, enforcing MFA based on detected user risk levels, not group membership.

Therefore, the verified and correct answer is: ✅ C. a Conditional Access policy.

Microsoft Defender for Office 365 is the Microsoft 365 solution designed to protect users from threats delivered through email and collaboration workloads. SCI training material explains that Defender for Office 365 protects Exchange Online, Microsoft Teams, SharePoint Online, and OneDrive for Business by detecting and blocking malware, phishing, and other advanced attacks that use messages and shared content as the delivery channel.

A key capability is Safe Links, which specifically protects against malicious URLs. When a user receives an email, Teams chat message, or channel post that contains a hyperlink, Safe Links scans and rewrites that URL. At the moment the user clicks, the link is checked again; if it is identified as malicious or leads to a known phishing or malware-hosting site, access is blocked and a warning page is shown. This time-of-click protection is emphasized in Microsoft’s security documentation as a primary defense against weaponized links in email and collaborative communications.

By comparison, Microsoft Defender for Identity focuses on detecting identity-related threats in on-premises Active Directory, Defender for Endpoint protects devices and endpoints, and Defender for Cloud Apps secures SaaS applications and shadow IT. None of these are the primary solution for blocking malicious links in email, chats, and channels. Therefore, the correct choice is Microsoft Defender for Office 365.

In Microsoft Purview Compliance Manager, improvement actions are categorized by control type to reflect how they reduce risk and contribute to your compliance score. Microsoft’s SCI guidance explains that preventative controls are safeguards that “prevent a security or compliance incident from occurring by enforcing protections in advance (for example, enforcing encryption of data at rest and in transit, access restrictions, and configuration baselines).” This directly aligns with the task “Use encryption to protect data at rest”, which is a classic prevention mechanism intended to stop unauthorized disclosure before it can happen.

The guidance also states that detective controls are measures that “identify, log, and surface anomalous or non-compliant activities so they can be investigated and addressed (for example, continuous monitoring, alerting, audit logging, and analytics).” This maps to “Actively monitor systems to identify irregularities that might represent risks”, because the goal is to detect suspicious behavior or drift as it occurs.

By comparison, corrective controls are used to “remediate issues and restore a desired state after a problem is discovered (for example, patching, incident response, or configuration correction).” No corrective action is described in the two listed tasks, so Corrective is not selected. This mapping reflects how Compliance Manager classifies actions that contribute points to the compliance score based on their risk-reducing impact.

In Microsoft Purview eDiscovery, to search, preserve, analyze, and export content, you must first create a case. A case acts as a container for all eDiscovery activities, including placing users and content locations on litigation hold, running content searches, and exporting results for legal or compliance review.

SCI Extract: "Cases are used in Microsoft Purview eDiscovery (Standard and Premium) to manage, organize, and execute the various tasks associated with identifying and delivering content during an investigation or litigation."

No

No

Yes

Microsoft states that Communication Compliance is administered in Microsoft Purview, not the Microsoft 365 admin center. The Learn article shows configuration and policy templates “in the Microsoft Purview portal” and directs admins to “configure Communication Compliance” there, confirming the management plane is the Purview compliance portal, not the M365 admin center.

Regarding supported locations, Microsoft lists the communication channels that policies can inspect: “Microsoft Teams… Exchange Online… Viva Engage… [and] Third-party sources.” SharePoint Online is not listed among supported channels, so SharePoint content isn’t monitored by Communication Compliance policies.

Finally, Communication Compliance includes built-in workflows to address findings. The Learn page explicitly provides a Remediate step: “Remediate Communication Compliance issues you investigate by using the following options:” such as “Notify the user” and “Escalate to another reviewer.” These actions demonstrate that the solution does more than detect; it supports remediation within the Purview portal workflow.

Exact extracts (selected):

“You can choose from the following policy templates in the Microsoft Purview portal.”

“Communication Compliance policies check… Microsoft Teams… Exchange Online… Viva Engage… Third-party sources.”

“Remediate Communication Compliance issues you investigate by using the following options: Notify the user… Escalate to another reviewer.”

Azure Bastion is a managed PaaS service that provides secure and seamless RDP/SSH connectivity to your Azure virtual machines directly from the Azure portal over TLS/HTTPS. SCI and Azure security documentation summarize it as eliminating public IP exposure on VMs by using a fully managed bastion host deployed inside your virtual network. Users connect through their browser and the service brokers the RDP or SSH session, which “protects your VMs from exposing RDP/SSH to the Internet.” Bastion does not provide access to Azure Files, SQL Managed Instance, or App Service; it is specifically built to secure management access to VMs without requiring a VPN or public endpoints. Therefore, the resource type Azure Bastion securely connects to is Azure virtual machines.

In Microsoft Entra Conditional Access, policy evaluation occurs after the user successfully completes first-factor authentication (for example, username + password or Windows Hello for Business key). Microsoft Learn explains that Conditional Access “is the tool used by Azure AD to bring signals together, make decisions, and enforce organizational policies” and that it’s applied “after the first-factor authentication is completed.” Once primary authentication succeeds, Conditional Access evaluates signals like user, device state, location, risk (from Identity Protection), and application, and then enforces controls such as requiring MFA, blocking access, or applying session controls.

This design ensures Conditional Access does not replace primary authentication and is not enforced before or during the initial credential verification. Instead, it adds a second policy decision point that can demand stronger proof (e.g., MFA), restrict access paths, or limit sessions. Therefore, “after” is correct, while “before,” “during,” or “instead of” first-factor authentication are incorrect because Conditional Access relies on the initial sign-in to collect the necessary signals and then applies the configured access decisions and protections.

In Microsoft’s identity platform, Active Directory Domain Services (AD DS) is the on-premises directory that maintains directory objects such as users, groups, and computers. Microsoft documentation describes AD DS as a service that “stores information about objects on the network and makes this information easy for administrators and users to find and use.” It further explains that AD DS contains objects like “users, groups, computers, and other resources,” and that administrators use tools such as Active Directory Users and Computers to create and manage these objects. A key object type is the computer account; Microsoft states that “a computer that’s joined to a domain has a corresponding computer account object in Active Directory” and that these accounts are created and managed within AD DS to enable secure authentication and authorization for domain-joined devices.

By contrast, mobile devices are typically enrolled and managed through Microsoft Intune/Endpoint Manager and Azure AD device objects, not created in AD DS. Likewise, SaaS applications that require modern authentication integrate with Microsoft Entra ID (Azure AD) using OpenID Connect/OAuth 2.0—not with AD DS. Line-of-business apps that rely on modern authentication are also registered in Entra ID, while AD DS supports traditional Kerberos/NTLM for domain resources. Therefore, among the options provided, the object you can create in AD DS is computer accounts.

In Microsoft’s Security, Compliance, and Identity guidance, the Microsoft Service Trust Portal (STP) is identified as the public destination where Microsoft publishes independent audit reports, compliance certifications, assessment reports, and trust-related documentation for Microsoft cloud services. The documentation explains that the STP provides customers with access to materials such as SOC 1/SOC 2 reports, ISO/IEC certifications, audit summaries, and compliance guides, enabling organizations to evaluate Microsoft’s controls and map them to their own regulatory requirements. The STP is expressly positioned for transparency and due diligence, allowing customers and auditors to review Microsoft’s compliance posture and understand how Microsoft manages security, privacy, and compliance across its cloud platforms.

By contrast, the Microsoft Purview compliance portal is a tenant-admin portal used to configure and manage compliance solutions (e.g., DLP, Information Protection, eDiscovery, Insider Risk, Compliance Manager) within your organization—not a public repository of Microsoft’s audit artifacts. The Microsoft Purview governance portal focuses on data governance and cataloging scenarios. The Azure EA portal is used for Enterprise Agreement billing and usage management. Therefore, the public site for publishing audit reports and other compliance-related information for Microsoft cloud services is the Microsoft Service Trust Portal.

In Microsoft’s Security, Compliance, and Identity materials, Azure AD B2B collaboration is the feature designed for working with external organizations. Microsoft describes it as follows: “Azure AD B2B collaboration allows you to securely share your company’s applications and services with guest users from any other organization, while maintaining control over your own corporate data. Guest users sign in with their own work, school, or social identities, and appear as guest users in your directory.” This directly matches the sentence in the prompt—enabling collaboration with suppliers, partners, and vendors while ensuring that external users appear as guest users in the tenant.

By contrast, Active Directory Domain Services (AD DS) is an on-premises directory service for Windows domain joined resources and does not provide cloud guest user collaboration. Active Directory forest trusts establish trust relationships between AD DS forests for resource access, not modern cloud guest access using Conditional Access, MFA, or entitlement processes. Azure AD B2C is for consumer/retail scenarios where you build customer-facing apps, managing their identities in a separate customer directory; it is not intended for partner collaboration within your enterprise tenant. Therefore, the capability that fits the statement—external partner collaboration with users appearing as guest accounts—is Azure AD B2B.

In Microsoft’s SCI guidance, encryption at rest is defined as protecting data when it is stored on a disk or other persistent media. Microsoft describes it as controls that “help safeguard your data to meet your organizational security and compliance commitments by encrypting data when it is persisted,” distinguishing it from protections for data in transit. Within Azure and Microsoft 365, examples include Azure Disk Encryption for IaaS VMs (using BitLocker for Windows and DM-Crypt for Linux), server-side encryption for storage accounts, and Transparent Data Encryption for databases. A virtual machine’s OS and data disks encrypted with BitLocker or DM-Crypt are canonical cases of at-rest encryption because the encryption keys protect the physical media; the data becomes unreadable if the disks are accessed outside the authorized context. By contrast, site-to-site VPN, HTTPS web sessions, and encrypted email protect data in transit—they secure network communications but do not encrypt the data where it is stored. Therefore, among the options provided, encrypting a virtual machine disk is the correct example of encryption at rest in Microsoft’s security model.

In Microsoft Sentinel, playbooks are the feature that integrates with Azure Logic Apps to automate response. Microsoft’s documentation describes them as “collections of procedures that can be run from Microsoft Sentinel in response to an alert” and clarifies that “playbooks are built on Azure Logic Apps” providing a workflow engine and a gallery of connectors to other Microsoft and third-party services. Playbooks can be triggered automatically from analytics rules or manually from incidents and alerts, enabling orchestration such as assigning owners, creating tickets, disabling accounts, blocking IPs, or posting to collaboration channels. The platform emphasizes that the Logic Apps foundation gives security teams a visual designer, managed connectors, and run history to track execution and outcomes. In short, Sentinel uses playbooks to “automate and orchestrate responses to alerts and incidents”, reducing mean-time-to-respond and standardizing actions across your SOC. Other Sentinel components serve different purposes: analytic rules detect threats, hunting queries aid proactive investigation, and workbooks provide dashboards and visualizations. Therefore, the correct completion is: Microsoft Sentinel playbooks use Azure Logic Apps to automate and orchestrate responses to alerts.

Azure DDoS Protection Standard is a platform-native service designed to mitigate distributed denial of service attacks against Azure-hosted workloads that expose public IP addresses. Microsoft’s guidance explains that DDoS Protection Standard is “enabled on a virtual network” and, once enabled, “automatically protects resources within the virtual network with public IP addresses” (for example, Application Gateway, Azure Load Balancer, and virtual machines). The service is “tuned to the traffic patterns of the protected resources” and provides adaptive real-time mitigation with telemetry and attack analytics.

Critically, the scope of enablement is at the virtual network (VNet) level, not at the resource group level, and it does not apply to Azure Active Directory (Microsoft Entra ID) users or applications, which are identity services rather than network resources. Microsoft’s materials emphasize that by associating a DDoS protection plan to a VNet, you “protect all public IPs assigned to resources in that VNet”, giving layered protection alongside Azure’s always-on basic protections.

Therefore, the only option that correctly completes the sentence is virtual networks, because Azure DDoS Protection Standard is configured on, and provides coverage for, resources inside a VNet that have public endpoints—exactly matching Microsoft’s SCI/Azure security documentation.

Yes

NO

NO

YES - As an administrator, you can lock a subscription, resource group, or resource to prevent other users in your organization from accidentally deleting or modifying critical resources. The lock overrides any permissions the user might have.

NO - The most restrictive lock in the inheritance takes precedence.

NO - If you delete a resource group with a locked resource, the portal UI will give you an error and no resources are deleted.

https://docs.microsoft.com/en-us/azure/azure-resource-manager/management/lock-resources?tabs=json

Box 1: Yes

Azure Defender provides security alerts and advanced threat protection for virtual machines, SQL databases, containers, web applications, your network, your storage, and more

Box 2: Yes

Cloud security posture management (CSPM) is available for free to all Azure users.

Box 3: Yes

Azure Security Center is a unified infrastructure security management system that strengthens the security posture of your data centers, and provides advanced threat protection across your hybrid workloads in the cloud - whether they're in Azure or not - as well as on premises.

In Microsoft Entra ID (Azure AD), Conditional Access is the policy engine that evaluates signals about the user, device, app, and session to determine whether to grant access and under what conditions. Microsoft’s guidance explains that Conditional Access is “the tool used by Azure AD to bring signals together, make decisions, and enforce organizational policies.” In device-centric scenarios, Conditional Access integrates with Microsoft Intune device compliance so you can enforce controls such as “Require device to be marked as compliant” or “Require approved client app” before granting access to corporate resources like Microsoft 365 and Azure apps. This allows organizations to block or limit access from unmanaged or noncompliant devices, and to allow access only from devices that meet your compliance policies (encryption, OS version, jailbreak/root status, etc.).

By contrast, Network Security Groups (NSGs) filter traffic at the virtual network/subnet/NIC level and are not identity-aware; Privileged Identity Management (PIM) governs just-in-time elevation and access reviews for privileged roles; and resource locks prevent accidental deletion or modification of Azure resources. Therefore, the Azure AD feature specifically designed to restrict access by Intune-managed device state and enforce device-based access conditions to corporate resources is Conditional Access.

In the Microsoft 365 security center/Microsoft 365 Defender portal, the Reports area is designed to provide organization-wide visibility into security posture and activity over time. Microsoft describes the Reports experience as enabling you to “view security trends and track the protection status across identities, endpoints, email & collaboration, and cloud apps.” Within Reports, the Identity section aggregates signals from Microsoft Entra ID protection and related identity defenses so security teams can monitor trends such as risky sign-ins, user risk, MFA adoption/registration, and other identity protection metrics. These curated, read-only dashboards are aimed at measuring protection status and changes over time, helping you validate the impact of controls and prioritize remediation.

By contrast, Attack simulator is used to run user training simulations (e.g., phishing) and is not intended for posture trend reporting. Hunting (Advanced hunting) lets analysts query raw telemetry for investigations, not to provide summarized trend dashboards. Incidents correlates alerts into incident records for triage and response, rather than showing long-term trends and protection status views. Therefore, to view security trends and track the protection status of identities, the correct place is Reports in the Microsoft 365 security center/Microsoft 365 Defender portal.

In the Microsoft Cloud Adoption Framework (CAF) for Azure, the methodology is organized into sequential stages that guide an organization from initial intent through operations. Microsoft describes the flow as: “Strategy → Plan → Ready → Adopt → Govern → Manage.” The guidance explains that before building landing zones or preparing environments (Ready), organizations should complete the Strategy and Plan work. Microsoft states that the framework “helps you create and align your business strategy, define business outcomes, and justify cloud adoption” in the Strategy stage; then, in Plan, you “translate that strategy into an actionable adoption plan, rationalize portfolios, and prepare a cloud adoption backlog.” Only after these two stages does the Ready phase occur, where you “prepare your cloud environment (landing zone) to host the workloads.”

Additionally, CAF emphasizes that Govern and Manage are ongoing disciplines that operate alongside and after adoption rather than preceding Ready: “Govern and Manage provide iterative guardrails and operational baselines that evolve as you adopt more workloads.” Therefore, the two phases addressed before the Ready phase are Define Strategy and Plan, aligning with Microsoft’s prescribed order and intent of the Cloud Adoption Framework methodology.

Assessments

In Microsoft Purview Compliance Manager, assessments are the core components used to track compliance with groupings of controls from specific regulations, standards, or requirements.

According to official Microsoft Security, Compliance, and Identity (SCI) learning content, particularly within the SC-400 and SC-900 certification tracks, the role of assessments is explicitly defined as:

“Assessments in Compliance Manager help you track, implement, and improve compliance with requirements from standards and regulations. Each assessment maps to a specific regulation or control framework, such as ISO 27001, NIST, GDPR, or HIPAA, and includes a set of controls and recommended improvement actions.”

Further extracted content from SCI documentation confirms:

“An assessment is used to measure your compliance posture against a particular regulation or standard. It includes control mappings and provides insight into what’s in place and what still needs to be addressed to meet the compliance goals.”

The other options in the dropdown — Templates, Improvement actions, and Solutions — serve different functions:

Templates provide a blueprint for creating assessments.

Improvement actions are actionable steps generated within assessments.

Solutions in Microsoft Purview refer to bundled capabilities like Insider Risk Management, Information Protection, etc.

Therefore, to track compliance with groupings of controls from a specific regulation or requirement, the correct and Microsoft-verified term is "Assessments."

In Microsoft’s Security, Compliance, and Identity guidance, Microsoft Cloud App Security (now Microsoft Defender for Cloud Apps) integrates with Azure AD Conditional Access to provide Conditional Access App Control. This capability enables organizations to “monitor and control user sessions in real time” by routing traffic through a reverse proxy once a Conditional Access policy is triggered. With session controls, admins can enforce actions such as block, allow with inspection, apply download restrictions, require label application, or limit access to web apps based on context (user, device state, location, risk). SCI learning paths describe that Defender for Cloud Apps works with Conditional Access policies to provide session-based conditional access that “protects data in real time,” giving granular control after authentication while a session is active.

By comparison, Azure AD Privileged Identity Management (PIM) focuses on just-in-time elevation and governance of privileged roles, not real-time in-app session control. Azure Defender (Defender for Cloud) provides cloud workload protection and posture management, not Conditional Access session enforcement. Azure Sentinel (Microsoft Sentinel) is a SIEM/SOAR platform for analytics, hunting, and automation and does not apply Conditional Access session policies. Therefore, the Microsoft product that uses Conditional Access policies to control sessions in real time is Microsoft Cloud App Security (Defender for Cloud Apps).

In Microsoft’s shared responsibility model for Azure, responsibilities are divided between Microsoft and the customer. Microsoft Learn explains that Microsoft is responsible for security of the cloud, while customers are responsible for security in the cloud. The platform owner’s scope includes the underlying facilities and infrastructure. As the documentation states: “Microsoft is responsible for the security OF the cloud, which includes protecting the infrastructure that runs all of the services offered in Microsoft Azure,” and this encompasses “physical datacenters, physical hosts, and the physical network.” The customer, by contrast, is responsible for items within their tenant and workloads, including “data, endpoints, accounts, and access management,” as well as configuration of services, identities, and devices.

Applied to the options given: managing mobile devices (A), setting permissions for user data (B), and creating/managing user accounts (C) fall under the customer’s responsibility because they relate to identity, access, data, and endpoint management within the tenant. The one item that Microsoft solely manages is the physical layer—the “physical hardware and facilities” that host Azure services. Therefore, the correct answer is D. the management of the physical hardware.

In Microsoft’s Security, Compliance, and Identity guidance, Azure AD Privileged Identity Management (PIM) is the service used to manage, control, and monitor access to important resources in Azure and Microsoft 365. The documentation explains that PIM enables “just-in-time” and “time-bound” activation of privileged roles, requiring users to elevate only when needed and for a limited duration. PIM policies can require approval before a role is activated, enforce multifactor authentication, capture business justification, send notifications, and maintain detailed auditing and access review records. These controls are designed to reduce the risk associated with standing administrative privileges by ensuring that elevation is temporary, approved, and tracked.

By contrast, Windows Hello for Business provides strong, device-bound authentication; Azure AD Identity Protection focuses on detecting and remediating risky sign-ins and users; and Azure AD Access Reviews periodically reattest existing assignments but do not provide the on-demand, approval-based, time-limited activation of roles. Therefore, when the requirement is approval-based, time-bound role activation, Microsoft’s prescribed capability is Azure AD PIM, which delivers just-in-time elevation with approvers, duration limits, and audit/logging to support least privilege and Zero Trust operational practices.

Microsoft’s security guidance for hybrid and cloud environments adopts the Zero Trust approach, which explicitly positions identity as the primary boundary for access decisions. Microsoft states that in modern, distributed environments, “the traditional network perimeter is no longer sufficient” and that identity becomes the new security perimeter for protecting access to resources across on-premises and cloud. In Zero Trust, access is granted based on who the user or workload is, the risk of the sign-in, the device health, and the context of the session. Microsoft summarizes this shift as: “Identity is the control plane,” emphasizing that authentication, authorization, and continuous evaluation of trust are enforced through identity-centric controls such as Conditional Access, multifactor authentication, Privileged Identity Management, device compliance, and session controls.

While tools like firewalls and services such as Microsoft Defender for Cloud remain important layers in a defense-in-depth strategy, they are not the primary perimeter in a hybrid model. Because users, devices, and applications operate from anywhere, identity is the consistent, verifiable layer through which policy is enforced for both on-premises and cloud resources. Therefore, in an environment that spans on-premises and cloud, Microsoft recommends treating identity as the primary security perimeter, applying continuous verification and least-privilege access through identity-driven policies.