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Classifying Fabric items with a sensitivity label

Sensitivity labels in Microsoft Fabric let you classify and protect data items (like lakehouses, warehouses, semantic models, and reports) with the same labels used across Microsoft 365, driven by Microsoft Purview Information Protection. Labels can be applied manually by users or automatically via admin policies, and they help enforce data protection and compliance requirements as data flows through the analytics lifecycle.

Must-know

  • Sensitivity labels must first be created and published in the Microsoft Purview compliance portal before they are available in Fabric.
  • In Fabric, the tenant admin must enable the 'Information protection for Power BI content' (or equivalent Fabric) setting in the admin portal for labels to appear.
  • Labels can be applied manually by item owners/editors from the workspace or item settings, or applied automatically through default labeling and auto-labeling policies.
  • When a label is applied to an upstream item (e.g., a lakehouse or dataset), it can automatically flow downstream to dependent items like reports and dashboards built on that data, depending on inheritance settings.
  • Removing or downgrading a sensitivity label to a less restrictive one may require justification text or additional permissions, depending on label policy configuration.
  • Sensitivity labels applied in Fabric can also enforce protection when data is exported (e.g., to Excel or PDF), encrypting the file according to the label's protection settings if configured.
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A data engineer applies the sensitivity label "Highly Confidential" to a lakehouse in Microsoft Fabric. Later, a semantic model is created directly from that lakehouse, and a Power BI report is built directly on that semantic model. No one manually changes any labels along the way. What should the data engineer expect regarding the sensitivity label on the final report?

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Coverage checked against the published exam guide on Aug 11, 2026.

These are independent practice questions, written against this certification's published exam guide. They are not the certification vendor's own questions, and not the real exam.