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Microsoft Purview Information Protection

An enterprise sensitivity label taxonomy with manual and automatic labeling, and Azure RMS encryption across Microsoft 365.

Microsoft PurviewSensitivity LabelsAuto-LabelingAzure RMSExchange OnlineSharePoint

Difficulty

Advanced

Environment

Microsoft 365 / Purview

Deployment

Production

Est. Implementation

3–4 weeks

Related certifications:SC-400MS-102
GitHub
Overview

Executive Summary

This project deployed a complete Microsoft Purview Information Protection framework, covering an eight-tier sensitivity label taxonomy, label policy publishing with mandatory labeling, manual user-driven labeling in Office apps and Outlook, and an auto-labeling policy that detects Credit Card Numbers and automatically applies encryption.

Implemented in a Microsoft 365 E5 tenant, the framework gives the organisation a consistent classification standard that downstream Purview DLP, Audit and Records Management controls all build on top of.

Context

Business Problem

Sensitive data generated across Microsoft 365 — emails, Word and Excel files, SharePoint content and Teams messages — had no formal classification or protection framework, leaving it exposed to accidental external sharing, unauthorised access and exfiltration via unprotected email.

Manual controls alone do not scale: users forget to apply labels, apply the wrong classification, or work without awareness of what is actually sensitive. A consistent, enterprise-standard taxonomy is also the prerequisite for downstream DLP and audit controls.

Business Risks

  • Accidental external sharing of unclassified sensitive content
  • Unauthorised access to confidential files and emails
  • Data exfiltration via unprotected email and documents
  • Regulatory non-compliance exposure (GDPR, ISO 27001)

Compliance Concerns

  • ISO/IEC 27001:2022 information classification controls
  • GDPR data protection requirements
  • Consistent labeling as a prerequisite for downstream DLP and audit controls
Approach

Solution Overview

An eight-tier sensitivity label taxonomy (Public, General, Confidential, Highly Confidential, Internal Projects, Client Confidential, Finance Restricted and Executive Confidential) was created and scoped to Files and Emails, with encryption and access-control protection settings applied to the confidential tiers.

The label policy was published to all users with mandatory labeling enabled. On top of manual, user-driven labeling in Office apps and Outlook, an auto-labeling policy detects the built-in Credit Card Number Sensitive Information Type and automatically applies the Finance Confidential label with Azure RMS (AES-256) encryption — removing reliance on users to recognise and label regulated content themselves.

Design

Architecture

Architecture Diagram
100%
Architecture diagram
Sensitivity label taxonomy published across Exchange Online, SharePoint, OneDrive, Teams and Office apps, with an auto-labeling policy applying Finance Confidential on Credit Card Number detection and Azure RMS enforcing encryption-based access control.
Stack

Technology Stack

Microsoft Purview

Sensitivity labels, label policies and auto-labeling policies

Azure RMS

AES-256 encryption and access-control enforcement

Exchange Online

Email classification and protection

SharePoint Online / OneDrive

Document classification and protection

Microsoft Teams

Chat and channel content protection

PowerShell / Microsoft Graph

Label taxonomy deployment and usage reporting

Environment

Lab Environment

Tenant
Patchthecloud.onmicrosoft.com (Microsoft 365 E5 trial)
Licensing
Microsoft 365 E5
Identity
Microsoft Entra ID
Workloads
Exchange, SharePoint, OneDrive, Teams, Office apps
Labels Created
9 (default + custom taxonomy)
Encryption
Azure RMS (AES-256)
Build

Implementation

A phased, expandable walkthrough. Screenshots and evidence can be attached to each phase.

  1. Confirm Purview portal access and review the default label taxonomy.

    • Verify compliance.microsoft.com access and licensing
    • Review Microsoft's default sensitivity label taxonomy
    • Scope the custom taxonomy required for the business
    Screenshots for this phase can be added here.
Automation

PowerShell

Illustrative example snippets — copy or download each script. Production values are placeholders.

Create the sensitivity label taxonomy

New-SensitivityLabels.ps1
# Illustrative scaffold based on New-SensitivityLabels.ps1 — values are placeholders.
Connect-IPPSSession -UserPrincipalName admin@yourtenant.onmicrosoft.com

New-Label -Name "Finance Restricted" -DisplayName "Finance Restricted" `
  -Tooltip "Restricted finance data — encryption enforced" `
  -ContentType "File, Email"

Set-LabelPolicy -Identity "Enterprise Taxonomy" -AddLabel "Finance Restricted"

Create the auto-labeling policy

New-AutoLabelingPolicy.ps1
# Illustrative scaffold based on New-AutoLabelingPolicy.ps1
New-AutoSensitivityLabelPolicy -Name "Auto-Label Credit Card Data" `
  -ApplySensitivityLabel "Finance Confidential" `
  -ExchangeLocation All -SharePointLocation All -OneDriveLocation All `
  -Mode TestWithoutNotifications

New-AutoSensitivityLabelRule -Policy "Auto-Label Credit Card Data" `
  -ContentContainsSensitiveInformation @{Name="Credit Card Number"; minCount="1"}

Report label usage

Get-SensitivityLabelReport.ps1
# Illustrative scaffold based on Get-SensitivityLabelReport.ps1
Get-Label | Select-Object DisplayName, Guid, ContentType |
  Export-Csv -Path .\reports\sensitivity-labels.csv -NoTypeInformation
Evidence

Configuration Screenshots

Click any tile to open the lightbox. Real screenshots will replace these placeholders.

Phase 1 · Overview

Phase 2 · Sensitivity Label Taxonomy

Phase 3 · Label Policy Publishing

Phase 4 · Manual Labeling

Phase 5 · Automatic Labeling

Proof

Validation

  • Taxonomy Published

    All 9 labels (default + custom) published and visible to users.

  • Mandatory Labeling Enforced

    Label policy requires classification before content is saved/sent.

  • Manual Labeling Confirmed

    Labels apply correctly in Word and Outlook.

  • Auto-Labeling Confirmed

    Credit Card Number content is automatically labeled Finance Confidential.

  • Encryption Enforced

    Azure RMS (AES-256) restricts access on protected labels.

Reality

Challenges

Groups & Sites scope unavailable in the lab tenant

Extending labels to Microsoft 365 Groups and sites required additional Entra/M365 integration not available in this lab tenant — documented as a known limitation rather than worked around.

Manual labeling inconsistency

User-driven labeling alone was inconsistent, which is exactly why the auto-labeling policy for Credit Card Number detection was added on top.

Insight

Lessons Learned

  • Publishing a label makes it available to users — it does not retroactively label existing content; auto-apply policies are needed for that.
  • A clear taxonomy (why each tier exists) matters more than the number of labels.
  • Auto-labeling policies should start in simulation before Automatic mode is enabled tenant-wide.
  • Content marking and encryption are separate settings — both need to be deliberately configured, not assumed.
Outcome

Business Impact

9-label taxonomy

Consistent Classification

Auto-labeling enabled

Reduced Manual Error

Azure RMS AES-256

Encrypted Access Control

Data-layer protection

Zero Trust Alignment

Capability

Skills Demonstrated

Microsoft Purview Information ProtectionSensitivity Label Taxonomy DesignAuto-Labeling PoliciesAzure RMS EncryptionLabel Policy PublishingPowerShell / Microsoft Graph
Mapping

Related Certifications

Certifications this project maps to are highlighted.

MS-102SC-200SC-300SC-400AZ-900AZ-500SC-100
Reading

Related Blog Articles

Placeholder cards — future TechCertGuide integration.

Source

GitHub Repository

lokeshm-it/Microsoft-Purview-Information-Protection

Public

Sensitivity label taxonomy, manual/auto-labeling and Azure RMS encryption implementation.

Resources

Download Center

Project Case Study

PDF · Available soon

Architecture Diagram

PDF · Available soon

PowerShell Scripts

ZIP · Available soon

Technical Documentation

PDF · Available soon