Describe sensitivity labels
Sensitivity labels and label policies are an important part of a data governance strategy within your Microsoft 365 tenant. As stated in the previous section, without defining and implementing sensitivity labels for data and location, no activity will be monitored to identify misuse of information. Creating a sensitivity label to identify specific types of data from within your trainable classifiers, sensitive information types, and exact data matches will allow you to put policies in place to monitor activity. An important note here is that in order to monitor and govern activity on sensitive data, you will need to create a label and a policy for it.
More information on sensitivity labels and policies can be found at this link: https://docs.microsoft.com/en-us/microsoft-365/compliance/sensitivity-labels?view=o365-worldwide.
The following steps need to be completed to create a sensitivity label and policy:
