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This course is designed to give you a solid understanding of data loss prevention (DLP) in Microsoft 365. You will learn how data loss prevention works and why you as a Microsoft 365 administrator would want to implement it.

After a general DLP overview, you will be guided through a series of demonstrations that will show you how to create, test, and edit DLP policies, report on DLP and view alerts, and automatically apply labels based on data loss policy matches.

Learning Objectives 

  • Obtain a foundational understanding of data loss prevention
  • Learn how to implement data loss prevention in Microsoft 365
  • Learn how to report on data loss prevention policies

Intended Audience

This course is intended for anyone preparing for the MS-101 or MS-500 exam or who simply wants to learn about data loss prevention in Microsoft 365.


To get the most out of this course, you should have some basic experience using Microsoft 365.

Additional Resources

Microsoft Licensing Guide: 


Let's do a quick review of what you've learned. Data loss prevention is a set of tools that are used to detect, identify and block sensitive data from being distributed to people that should not have access to it. You can use data loss prevention across files and emails that are in Microsoft 365 OneDrive, SharePoint, Exchange, and Teams.

Microsoft is also rolling out support for some third-party providers. DLP policies on emails can show a policy tip to warn the user, or it can block the email completely, or just log the action and allow it to go through. This works by scanning the text in files and emails and matching them to your DLP policies, it cannot scan voice or video data. DLP policies can be configured from templates or you can create your own custom policies. 

The DLP policies are created in the Microsoft 365 Compliance Centre. The DLP policy defines what will happen when you have a DLP policy match, this includes whether it shows a policy tip, notifies the administrator, encrypts the documents, or blocks the action completely. Reporting on DLP policy matches can be done through the Microsoft 365 Compliance Centre Reporting, and it will show you where the DLP policy match occurred, which user made the action, and also which policies were matched.

Email notifications on the DLP policy can also be set up to inform the user or the administrator about the DLP policy match. Using labels you can set up both retention and sensitivity policies. Retention policies define how long a document or file will be stored. A sensitivity policy can automatically encrypt documents, or set an automatic watermark or a header or a footer to flag the document to the user who is opening it that it is sensitive.

About the Author

Jake is an IT manager for a managed services company that works with small- to medium-size businesses and manages their IT. He mainly works with a Microsoft Stack, from Servers to Microsoft 365 & Azure. He also specializes in business process improvement helping businesses to leverage technology to speed up their workflows. Jake really enjoys testing out new technologies and seeing what they can do. Outside of work he enjoys kayak fishing, gardening, and going to the gym.