Module 02 β€” Protection & Enforcement

Sensitivity Labeling

Configurable 4-label taxonomy Β· automation matrix Β· client-side and auto-labeling Β· rollout guidance

Configurable Label Taxonomy: The four labels below represent the platform default taxonomy β€” suitable for healthcare and regulated-industry deployments. Labels are configured in Setup and can be adapted to your organisation’s approved vocabulary. Any label rename or structural change requires a formal governance review and update to paired DLP policies and auto-apply rules.
Default 4-Label Taxonomy
Public

Information approved for public distribution. No access restrictions. No encryption required. May be shared externally without restriction. Examples: press releases, public website content, published annual reports, marketing collateral.

Internal

Default label for general internal business information. Not intended for external distribution. No encryption by default but DLP monitors for external sharing. Examples: internal memos, operational procedures, team communications, internal meeting notes.

Confidential

Sensitive regulated data requiring restricted access. Encryption applied. External sharing blocked by DLP. Applies to PHI, PII, financial data, and other regulated content. Examples: patient records, HR files, financial projections, audit findings, vendor contracts with NDA.

Restricted

The most sensitive classification. Maximum protection controls applied. External sharing blocked under all normal circumstances. Endpoint restrictions active. Requires compliance review to share. Examples: regulatory examination materials, board-level strategic plans, critical system credentials, attorney-client privileged content, M&A target information.

Label Automation Matrix
LabelAuto-Label (Service)Client-SideEncryptionDLP ActionEndpoint
Public Keyword / SIT matchManual / recommendedNoneAudit onlyNo restrictions
Internal Default / trainable classifierAuto-suggestedNone by defaultNotify on external shareAudit
Confidential SIT match + classifier (PHI, PII, financial)Recommended + mandatoryEncrypt + RightsBlock external shareWarn print/USB
Restricted SIT + Classifier + DSPM signalRequiredEncrypt + Do Not CopyBlock all sharingBlock all activities
Rollout Guidance
No calendar dates. Use week-based phases relative to deployment authorization. Adjust phase duration based on user feedback and false-positive rate.
Phase 1 β€” Weeks 1–4

Deploy Public and Internal labels. Enable auto-suggestion (no mandatory). Monitor adoption rate. Establish Activity Explorer baseline. No DLP enforcement yet.

Phase 2 β€” Weeks 5–8

Add Confidential label. Enable mandatory labeling for new documents. Configure SIT auto-apply for PHI and PII. Turn on DLP Notify mode for Confidential. Review false positives weekly.

Phase 3 β€” Weeks 9–12+

Deploy Restricted label (Legal, Compliance, Executive use). Enable DLP Block for Confidential+. Activate endpoint restrictions. Begin existing-content auto-labeling simulation.

Labeling Best Practices
  • Labels must reflect content sensitivity β€” not business unit or project type
  • Email inherits the highest label from any attachment β€” configure this in label policy
  • Container labels (Teams, SharePoint sites) set default but can be overridden per item
  • Do not create sub-labels without governance approval β€” keep the taxonomy flat and clear
  • Run auto-labeling policies in simulation first β€” review the "what would be labeled" report
  • Use trainable classifiers for document types that don't have clear regex patterns
  • Prioritize auto-labeling for SharePoint and OneDrive repositories first (easier to audit)
  • Exchange auto-labeling runs on messages in transit β€” test with pilot mailboxes before broad deployment
  • Any label rename, merge, or removal requires formal governance review and change control
  • Restricted label access must be scoped to Legal, Compliance, and named executive groups β€” review quarterly
  • Document all label definitions and access rules in the organization's data classification policy
  • Review label usage reports monthly β€” watch for over-labeling (everything Restricted) and under-labeling
References
CNC Data Security Platform Β· Module 02

Sensitivity Labeling

Configurable 4-label taxonomy Β· Automation matrix Β· Rollout guidance Β· Governance rules
Taxonomy Governance

Governance Rules

  • Four labels. No sub-labels without governance approval. No merges without change control.
  • Any label rename requires update to paired DLP policies and auto-apply rules.
  • Label configuration is managed in Setup β€” consult compliance owner before modifying.

Label Hierarchy

Public β†’ Internal β†’ Confidential β†’ Restricted

Label Summary

Public

Approved for public distribution. No encryption. No DLP restriction.

Internal

Default internal label. No encryption. DLP monitors external sharing.

Confidential

PHI/PII/regulated data. Encryption + Rights. DLP blocks external share.

Restricted

Maximum protection. Encrypt + Do Not Copy. Block all sharing and endpoint activities.

Rollout Phases (Week-Based)

Phase 1 β€” Wks 1–4

Public + Internal. Auto-suggest only. Baseline Activity Explorer. No DLP enforcement.

Phase 2 β€” Wks 5–8

Confidential + Secure Collab. Mandatory on new docs. DLP Notify for Confidential.

Phase 3 β€” Wks 9–12+

Restricted label (Legal, Compliance, Executive). DLP Block. Endpoint restrictions. Auto-label simulation.

References: learn.microsoft.com/en-us/purview/sensitivity-labels  Β·  learn.microsoft.com/en-us/purview/apply-sensitivity-label-automatically