Case Study • Microsoft 365 • 2024

Secure Microsoft 365 Communication — sensitivity labels, protection, and enablement

When sensitive documents are shared across teams and external parties, encrypted communication and clear classification rules become essential. This case study documents the implementation of Microsoft 365 information protection.

Client situation

  • Sensitive documents shared across teams and external parties
  • Needed encrypted communication and clear classification rules
  • Regulatory compliance requirements for data protection
  • Users lacked awareness of proper data handling procedures

What was delivered

  • Secure/encrypted communication pattern inside Microsoft 365
  • Sensitivity labels for data classification and protection
  • Policies for automatic and recommended labeling
  • User enablement/training for correct usage

Governance approach

  • Compliance alignment with GDPR and internal data protection requirements
  • Controlled access for sensitive communications
  • Audit logging for all label applications and access attempts
  • DLP integration to prevent accidental data leakage

Outcome

  • Improved confidentiality for sensitive document exchange
  • Enhanced data governance and regulatory compliance
  • User adoption through practical training and guidance
  • Visibility into data classification across the organization
Implementation Components

Sensitivity Labels & Information Protection

Data Classification Taxonomy

Defining classification levels (Public, Internal, Confidential, Highly Confidential) aligned with business needs and regulatory requirements.

Sensitivity Labels

Configuring Microsoft Purview sensitivity labels with appropriate protections: encryption, watermarks, headers/footers, and access restrictions.

Label Policies

Publishing labels to users, setting default labels, requiring justification for downgrades, and configuring auto-labeling rules.

Email Protection

Encrypted email with sensitivity labels, preventing forwarding/copying for confidential content, and secure external sharing.

Typical Deliverables

Information Protection Blueprint

  • Classification Taxonomy — data categories, definitions, handling requirements
  • Label Configuration — sensitivity labels with encryption and protection settings
  • Policy Documentation — labeling policies, auto-labeling rules, DLP policies
  • User Guides — how to apply labels in Outlook, Office apps, SharePoint
  • Training Materials — awareness sessions, quick reference cards
  • Compliance Reports — label usage analytics, protection status
FAQ

Frequently Asked Questions

What Microsoft licenses are required for sensitivity labels?
Basic sensitivity labels are included in Microsoft 365 E3. Advanced features (auto-labeling, trainable classifiers) require Microsoft 365 E5 or E5 Compliance add-on.
Can external recipients open encrypted emails?
Yes. External recipients can authenticate via one-time passcode or their own Microsoft/Google account, depending on configuration. The experience is seamless for most recipients.
How do users know which label to apply?
Through clear label descriptions, training, and visual aids. Labels should be intuitive (e.g., "Confidential - External Recipients Restricted"). Default labels and recommendations help guide users.
Can labeling be automated?
Yes. Auto-labeling can detect sensitive content (credit cards, personal data, custom patterns) and apply or recommend labels automatically. This requires E5 licensing.

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