Master Data Classification and Protection With Microsoft Purview Information Protection

Learn how you can apply sensitivity labels to documents and configure them to improve your data classification and protection in Microsoft 365 with Microsoft Purview Information Protection with this practical guide for IT professionals and compliance managers.

In brief:

• Microsoft Purview Information Protection helps organizations protect sensitive data across Microsoft 365 applications through data classification.
• Data classification helps organizations safeguard sensitive content, reduce risk of data leaks, meet compliance requirements, and empower employees to handle data securely.
• Use sensitivity labels in Purview to mark and protect documents.
• The tool offers features that make classifying your data easier and more intuitive, like visual markings, encryption and permissions, automatic labeling, and customizable label policies.
• Get started with Microsoft Purview by understanding your compliance needs, prioritizing critical data, and setting up labels and policies. From there, train users and automate with auto-labeling to improve the data classification process.

In today’s digital-first workplace, organizations handle vast amounts of sensitive data, such as internal reports, customer records, intellectual property and regulated information. Protecting this data isn’t only a technical challenge — it’s a business imperative.

Data classification is the foundation of effective information protection. It helps organizations:

• Safeguard sensitive content by applying the right level of protection
• Meet compliance requirements and avoid costly penalties
• Reduce risk of data leaks or unauthorized access
• Empower employees to make informed decisions about how they handle data

Without classification, sensitive information can be mishandled or exposed, leading to reputational damage and regulatory consequences.

What Is Data Classification — and Why Should You Care?

Data classification is the process of identifying and categorizing information based on its sensitivity and business impact. It goes beyond labeling files to building a culture of responsible data handling.

With classification in place, organizations gain:

• Automated compliance enforcement
• Granular access control
• Employee awareness through visual cues
• Reduced risk of data loss or exposure

Microsoft Purview Information Protection, formerly known as Azure Information Protection and now enhanced by Microsoft Copilot, empowers organizations to classify and protect data with greater intelligence and ease. Copilot provides contextual guidance and real-time recommendations to help users apply the right sensitivity labels based on content and organizational policies.

This seamless integration ensures users stay compliant without interrupting their workflow, making data protection intuitive, efficient, and aligned with modern productivity.

Using Sensitivity Labels in Microsoft Purview Information Protection to Classify and Protect Documents

Sensitivity labels are the core mechanism for marking and protecting data in Microsoft Purview. These labels can be applied manually or automatically, and they define how data should be handled.

Common label categories include:

• Public: Freely shareable content with no restrictions
• Internal Use: Non-public information with low risk, intended for internal collaboration
• Confidential: Sensitive business or customer data requiring encryption and access controls
• Restricted: Critical data with severe impact if disclosed (e.g., trade secrets, legal documents)

Sublabels (e.g., Confidential – HR, Restricted – Legal) allow for granular classification and policy enforcement.

Microsoft Purview Information Protection’s Key Features That Make Protection Smarter

Microsoft Purview Information Protection offers a suite of features that go beyond labeling:

Visual Markings

• Automatically apply headers, footers, or watermarks to documents based on sensitivity labels.
• Markings are configured within label policies and enforced by supported Microsoft 365 apps (e.g., Word, Excel, PowerPoint).

Encryption and Permissions

• Use Azure Rights Management to encrypt files and emails.
• Set access controls so only authorized users can view or edit content.
• Copilot respects encryption. It only accesses protected content if the user has the right permissions.
• Copilot displays sensitivity labels in its responses to reinforce data awareness.

Automatic Labeling

• Automatic labeling can be configured using sensitive info types, keywords, and regular expressions.
• The labels apply across Office apps (Word, Excel, PowerPoint, Outlook), SharePoint, OneDrive, and Exchange Online.

Customizable Label Policies

• Sensitivity labels can be scoped to specific users, groups, or departments with label policies.
• Labels support localized display names and tooltips using PowerShell and Microsoft Translator.

Getting Started With Microsoft Purview Without Getting Overwhelmed

Start small and build momentum with Microsoft Purview:

1. Understand Your Compliance Needs

• Identify regulatory obligations and business drivers.
• Use Microsoft Compliance Manager to map controls to frameworks (e.g., GDPR, HIPAA).
• Use Purview Data Security Posture Management (DSPM) for AI to assess artificial intelligence (AI)-related risks and apply controls.

2. Prioritize Critical Data

• Focus on your most sensitive assets first (e.g., personally identifiable information, financials, intellectual property).
• Use data classification and sensitive info types in Purview.
• Use risk assessment guides to support stakeholder discussions.

3. Set Up Labels and Policies in Purview

• Create and publish sensitivity labels with the Microsoft Purview compliance portal.
• Scope label visibility to specific users or groups (e.g., departments).
• Enable or disable label support across Microsoft 365 apps through policy settings.
• Support multilingual environments using PowerShell.
• Use auto-labeling to target content based on patterns or location.

4. Train and Support Users

• Educate staff on data classification, protection, and responsible AI practices using Microsoft Learn.
• Use Microsoft Adoption kits and Viva Learning to drive awareness and enablement.
• Microsoft 365 Copilot displays sensitivity labels in its responses when referencing labeled files, reinforcing classification awareness.

5. Automate Where It Makes Sense

• Configure auto-labeling for high-risk data using Purview policies.
• Use simulation mode to test rules before enforcement.
• Monitor label effectiveness with label analytics.

6. Monitor and Improve

• Use Purview dashboards, audit logs, and activity explorer.
• Use Security Copilot to summarize alerts and triage incidents across Purview Data Loss Prevention (DLP), Insider Risk Management, and DSPM.

Take Control of Your Data Today With Microsoft Purview Information Protection

Data classification and protection are essential, not optional, in today’s compliance-driven landscape. With Microsoft Purview Information Protection, IT professionals and compliance managers have the tools to:

• Identify and classify sensitive data.
• Apply protection policies across Microsoft 365 workloads.
• Monitor and improve data governance continuously.

Microsoft 365 Copilot complements this by:

• Respecting existing sensitivity labels and protection policies
• Displaying sensitivity labels in responses to reinforce awareness
• Operating within the boundaries of user permissions and label-based encryption

Want to accelerate your workplace collaboration? Our Microsoft Modern Workplace consulting team can help you with all of your Microsoft workplace needs. Contact us