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SC-500 · Domain 3

Secure compute practice questions

Secure compute is worth 24% of the SC-500 exam — the 2nd-heaviest of the 4 domains. Securing AI workloads and agents (Purview DSPM, Entra Agent ID, Foundry guardrails, Defender for AI), servers and VMs (encryption, Bastion, JIT, Arc, Defender for Servers) and application platforms (containers, AKS, Functions, App Service, WAF, API Management). Official weighting 20–25%. 6 fully worked examples are further down this page, answers included.

Exam weight
24%
the 2nd-heaviest of the 4 domains
Questions
114
across 3 topics
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5/day
a free account allows 30 a day
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Every option
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6 sample Secure compute questions, fully explained

Questions from the SC-500 bank mapped to domain 3, with the answer key and the reasoning behind every option. None of them repeat the examples on the main SC-500 practice page.

Question 1Secure compute

In Microsoft Purview DSPM, the default data risk assessment flags a finance SharePoint site. It holds files labelled Highly Confidential and many unlabelled files that contain credit card numbers. Copilot and agents must stop summarizing Highly Confidential items, the unlabelled sensitive files must get a label automatically, and the rest of the site must stay available to Copilot. Which two Protect-tab actions should you take? (Select TWO.)

Choose TWO.

  • a
    Hide the finance site's Highly Confidential content with Restricted Content Discovery

    Restricted Content Discovery works at site level, so it exempts the whole site from Copilot, which breaks the requirement that the rest of the site stays available.

  • b
    Restrict access by label for the Highly Confidential label Correct

    This creates a DLP policy that prevents Microsoft 365 Copilot and agents from summarizing items with the selected label, leaving other content usable.

  • c
    Create a retention policy for unlabelled credit card files not opened in three years

    This deletes stale content; it doesn't label sensitive files or stop Copilot from summarizing labelled ones.

  • d
    Create an auto-labeling policy for the credit card numbers Correct

    An auto-labeling policy applies a sensitivity label automatically to unlabelled files that contain the sensitive information type.

  • e
    Start a site access review of who can open files with that label

    A site access review asks the owner to check permissions; it neither applies labels nor blocks Copilot processing.

The concept

The Protect tab of a data risk assessment offers four remediations: restrict access by label (DLP for Copilot), restrict all items (Restricted Content Discovery), auto-labeling, and retention.

Why that’s the answer

Two separate problems need two controls. For labelled items, 'Restrict access by label' creates a DLP policy for the Microsoft 365 Copilot location that stops Copilot and agents summarizing items with that label, so it targets only the Highly Confidential files. For unlabelled sensitive files, an auto-labeling policy applies a label based on the detected credit card numbers. 'Restrict all items' would also stop Copilot summarizing the labelled files, but it removes the whole site from Copilot, which the requirement forbids. Retention and access reviews address stale content and permissions, not labels or Copilot processing.

How to reason it out
  1. Split the requirement: block Copilot on one label, and label unlabelled sensitive files.
  2. Copilot block by label is the DLP-based 'Restrict access by label'.
  3. Automatic labelling is an auto-labeling policy.
  4. Reject 'Restrict all items' because it hides the whole site.

Exam tip: Data risk assessment remediations: label-scoped DLP for Copilot, site-wide Restricted Content Discovery, auto-labeling, retention. Pick by scope.

SC-500 Security for AI: Copilot Oversharing, Purview DSPM, Entra Agent ID, Foundry Guardrails and Defender for AI — the lesson that teaches this.

Question 2Secure compute

A compliance administrator opens Data risk assessments in Microsoft Purview DSPM for the first time and sees a default assessment that nobody created. She wants to know which SharePoint content it covers and how often it refreshes. What does the default assessment scan?

Choose one.

  • a
    Every SharePoint site and OneDrive account, every day

    The default assessment is limited to the top 100 sites by usage and runs weekly, not across the whole estate daily.

  • b
    The 100 sites holding the most sensitive items, monthly

    Sites are chosen by usage, not by sensitive item count, and the assessment runs weekly.

  • c
    The sites she selects, once, when she runs it

    That describes a custom assessment; the default one is created and refreshed automatically.

  • d
    The top 100 SharePoint sites by usage, every week Correct

    The default Microsoft 365 assessment runs automatically each week against the 100 most-used SharePoint sites.

The concept

DSPM creates a default data risk assessment for Microsoft 365 that runs weekly on the top 100 SharePoint sites by usage.

Why that’s the answer

The default assessment is automatic: it scans the 100 most-used SharePoint sites every week, and the first results appear after a few days. Custom assessments are what you create to target other users, specific sites or (with an Entra app) item-level scanning. The default one is not organisation-wide and is not driven by sensitive item counts.

How to reason it out
  1. Recall that the default assessment is created automatically.
  2. Its scope is usage-based: the top 100 SharePoint sites.
  3. Its cadence is weekly.
  4. Anything narrower or targeted is a custom assessment.

Exam tip: Default data risk assessment = top 100 SharePoint sites by usage, weekly. Need other sites? Create a custom assessment.

SC-500 Security for AI: Copilot Oversharing, Purview DSPM, Entra Agent ID, Foundry Guardrails and Defender for AI — the lesson that teaches this.

Question 3Secure compute

Fabrikam needs to find individual files on three SharePoint sites that have anonymous or external sharing links, then remove those links and email each site owner, all from Microsoft Purview rather than the SharePoint admin center. An Entra application with the required Graph permissions already exists. What should you create in DSPM?

Choose one.

  • a
    A sharing links report in SharePoint data access governance

    This report lives in the SharePoint admin center and identifies sites, not individual files, and it can't remove links from Purview.

  • b
    A site access review from the default assessment's Monitor tab

    A site access review asks owners to review site permissions; it doesn't list or remove item-level sharing links from Purview.

  • c
    A custom data risk assessment that uses an item-level scan Correct

    Item-level scanning lists potentially overshared items on up to 10 SharePoint sites and offers Remove sharing link and Notify actions.

  • d
    A DLP policy for the Microsoft 365 Copilot location

    That policy stops Copilot processing labelled items; it doesn't find or remove sharing links.

The concept

Custom data risk assessments can scan at item level (SharePoint only, with a registered Entra app) and remediate individual overshared items.

Why that’s the answer

Only a custom assessment with the Item-level scan option shows potentially overshared items, those with external or anonymous sharing links, together with their labels and owners. From the results you can resolve an item, apply a label, notify the site owner or remove the sharing link. It needs a one-time Entra app authentication and supports up to 10 SharePoint sites. The default assessment and the SharePoint reports work at site level, and a Copilot DLP policy doesn't touch links.

How to reason it out
  1. Note the granularity: individual files, not sites.
  2. Note the tool: Purview, with remediation actions.
  3. Item-level work needs a custom assessment with Item-level scan.
  4. Use Remove sharing link and Notify from its results.

Exam tip: File-level oversharing fixes in Purview = custom data risk assessment with item-level scanning (SharePoint only, Entra app required).

SC-500 Security for AI: Copilot Oversharing, Purview DSPM, Entra Agent ID, Foundry Guardrails and Defender for AI — the lesson that teaches this.

Question 4Secure compute

In Microsoft Purview DSPM, the AI activities tab shows Microsoft 365 Copilot prompts that contain sensitive data, but nothing appears when employees paste customer data into consumer ChatGPT. The employees use Chrome on Windows 11 devices. The team needs visibility into sensitive data shared with these third-party AI sites. Which two actions should you take? (Select TWO.)

Choose TWO.

  • a
    Onboard the Windows devices to Microsoft Purview Correct

    Device onboarding is required to see sensitive information shared with third-party generative AI sites.

  • b
    Turn on Microsoft Purview auditing for users of the Windows devices

    Auditing is already working, because Copilot interactions appear; it isn't what's missing for third-party sites.

  • c
    Turn on data security for AI interactions in Defender for Cloud

    That setting shares Microsoft Foundry prompts with Purview; it doesn't cover consumer AI sites in a browser.

  • d
    Deploy the Microsoft Purview browser extension for Chrome Correct

    The extension is required on Windows to discover visits to AI sites and for endpoint DLP when users browse with Chrome.

  • e
    Assign Microsoft 365 Copilot licences to the Chrome users

    Copilot licences matter for monitoring Copilot interactions, not for third-party AI websites.

The concept

Different AI apps reach DSPM by different routes: Copilot via the audit log, third-party AI websites via onboarded devices and the browser.

Why that’s the answer

The working Copilot data proves that auditing is on, so the gap is specific to third-party sites. Purview sees what users paste into third-party generative AI sites only from devices onboarded to Microsoft Purview, and on Windows with Chrome the Microsoft Purview browser extension is also needed to detect visits and enforce endpoint DLP. Data security for AI interactions is a Defender for AI Services setting for Foundry traffic, and Copilot licences only matter for Copilot.

How to reason it out
  1. Use the evidence: Copilot data appears, so auditing works.
  2. Third-party AI websites are observed from the endpoint, so devices must be onboarded.
  3. Chrome on Windows needs the Purview browser extension.
  4. Discard controls that apply to Foundry or to Copilot only.

Exam tip: Copilot interactions need auditing; third-party AI sites need onboarded devices (plus the Purview extension for Chrome).

SC-500 Security for AI: Copilot Oversharing, Purview DSPM, Entra Agent ID, Foundry Guardrails and Defender for AI — the lesson that teaches this.

Question 5Secure compute

Contoso configured Microsoft Defender as the external threat detection provider for Copilot Studio agents in its Production environment. A Sales environment was created last month, and its generative agents call tools that the provider never evaluates. Security also requires that a tool call doesn't run when the provider fails to answer in time. What should you do?

Choose one.

  • a
    In Power Platform admin center, set up threat detection for Sales and choose Block the query Correct

    Threat detection is configured per environment, and Block the query stops the tool call when the provider times out or errors.

  • b
    In Power Platform admin center, set up threat detection for Sales and keep Allow the agent to respond

    This covers Sales, but the default error behaviour lets the tool run when the provider doesn't answer within a second.

  • c
    Register a second Entra app for Sales and change Production's error behavior to Block the query

    A new app registration does nothing until threat detection is set up for Sales in Power Platform admin center, and Production isn't the gap.

  • d
    Turn on threat detection once for the tenant and set the error behavior to Block the query

    There's no tenant-wide or propagating setting; external threat detection is configured per environment.

The concept

Copilot Studio external threat detection is configured per environment in Power Platform admin center, and its error behavior decides what happens on timeout.

Why that’s the answer

Two facts decide this. First, external threat detection has no tenant-wide or inherited setting: each environment, including ones created later, must be set up under Security > Threat detection > Additional threat detection. Second, if the provider doesn't return a decision within one second, the default error behavior, Allow the agent to respond, lets the tool run. Choosing Block the query meets the fail-closed requirement. A new app registration alone doesn't connect an environment.

How to reason it out
  1. Find why Sales isn't covered: the configuration is per environment.
  2. Set up Additional threat detection for the Sales environment.
  3. Check the timeout rule: the default allows the tool to run.
  4. Change Set error behavior to Block the query.

Exam tip: Copilot Studio threat detection: set up every environment separately; default on timeout is allow, so choose Block the query to fail closed.

SC-500 Security for AI: Copilot Oversharing, Purview DSPM, Entra Agent ID, Foundry Guardrails and Defender for AI — the lesson that teaches this.

Question 6Secure compute

An environment is connected to an external threat detection provider and most Copilot Studio agents send their tool invocations for evaluation. One agent, built years ago with classic topics and trigger phrases, calls a connector action that the provider never sees. The Entra app and endpoint are configured correctly. What should you change so the provider evaluates this agent's tool calls?

Choose one.

  • a
    Set the environment's error behavior to Block the query

    Error behavior only applies when the provider times out or errors; it doesn't add agents to evaluation.

  • b
    Add a federated credential for the agent to the Entra app

    The Entra app's federated credential is shared by the environment's connection; the agent isn't missing a credential.

  • c
    Publish the agent to Microsoft Teams and Microsoft 365

    The publishing channel doesn't change whether the orchestrator calls the threat detection endpoint.

  • d
    Switch the agent to generative orchestration Correct

    External threat detection is only called for agents that use generative orchestration; classic agents are skipped.

The concept

External threat detection runs when the generative orchestrator considers invoking a tool, so it applies only to generative agents.

Why that’s the answer

The provider is called each time the orchestrator plans a tool invocation. Classic agents, which follow authored topics and triggers, skip external threat detection entirely. Because the connection works for other agents, the cause is the agent's orchestration mode, not the Entra app, endpoint or error setting.

How to reason it out
  1. Note that other agents are evaluated, so the connection works.
  2. Note the odd one out uses classic topics.
  3. Recall that threat detection only runs for generative orchestration.
  4. Switch the agent to generative orchestration.

Exam tip: Copilot Studio external threat detection evaluates generative agents only; classic agents are skipped.

SC-500 Security for AI: Copilot Oversharing, Purview DSPM, Entra Agent ID, Foundry Guardrails and Defender for AI — the lesson that teaches this.

What SC-500 domain 3 tests, topic by topic

The official exam guide breaks Secure compute into 3 topics. The question bank follows the same split, so a weak topic shows up as a cluster of misses you can go back and read.

Published SC-500 practice questions per topic in Secure compute
TopicWhat it coversQuestions
Implement security for AISkills outline section (SC-500 study guide, fetched 2026-10-15). Identify overexposure of data in SharePoint; Identify risks related to Microsoft Copilot and AI apps by using Microsoft Purview Data Security Posture Management (DSPM); Enable and configure real-time protection for Microsoft Copilot Studio agents; Implement conditional access for Microsoft Entra Agent ID; Analyze blast radius for security risks related to Entra Agent ID by using Defender XDR; Manage Entra Agent ID access; Configure and deploy AI Gateway in Azure API Management for Microsoft Foundry; Enable Defender for AI Service in Cloud Workload Protection in Defender for Cloud; Configure guardrails for agent security in Foundry; Monitor AI security by using the Data and AI security dashboard in Defender for Cloud; Manage agents in Microsoft 365 admin center.38
Implement security for servers and virtual machines (VMs)Skills outline section (SC-500 study guide, fetched 2026-10-15). Implement and configure disk encryption; Plan and implement Azure Bastion; Enable and enforce use of just-in-time (JIT) VM access; Extend security controls to hybrid and multicloud servers by using Azure Arc; Onboard servers to Defender for Servers in Defender for Cloud, including hybrid and multicloud scenarios; Configure Defender for Servers settings, including vulnerability scanning, and endpoint detection and response (EDR); Implement and manage agentless scanning for VMs in Defender for Servers; Configure security features on a VM, including secure boot, virtual Trusted Platform Module (vTPM), integrity monitoring, and security type; Enforce security configuration of Azure-managed servers by using Azure Machine Configuration.38
Implement security for application platform servicesSkills outline section (SC-500 study guide, fetched 2026-10-15). Detect misconfigurations and runtime risks in container workloads by using Defender for Containers; Implement and configure security controls for Azure Kubernetes Service (AKS); Implement and configure security controls for Azure Container Registry; Implement and configure security controls for Azure Container Instances and Azure Container Apps; Implement and configure security controls for Azure Functions, including authentication and network access; Implement and configure security controls for Azure Logic Apps; Implement and configure security controls for Azure App Service; Implement and configure Azure Web Application Firewall; Implement security policies for back-end API protection by using API Management.38
Total114

Revise Secure compute before you drill it

Other SC-500 domains

Secure compute: your questions

Secure compute is domain 3 of the SC-500 exam guide and carries 24% of the scored content — the 2nd-heaviest of the 4 domains. On a 50-question paper that works out to roughly 12 questions, though Microsoft Azure does not publish an exact per-domain count and individual exam forms vary.

Source

The domain weight and topic list on this page come from the official SC-500 exam guide.