Which feature in Microsoft 365 helps to safeguard sensitive information and reduce security risks associated with external sharing?

Data Loss Prevention (DLP) is a critical feature in Microsoft 365 designed to help organizations protect sensitive information from being inadvertently shared with unauthorized users, especially during external sharing. DLP policies enable administrators to identify and monitor sensitive data, such as personally identifiable information (PII), credit card numbers, or health information, and apply specific actions when this data is shared outside the organization.

For example, with DLP, if a user attempts to share a document that contains sensitive information, the policy can prevent the action, notify the user about the violation, or even encrypt the data before it is shared. This proactive approach not only helps meet compliance requirements but also significantly reduces the risk of data breaches and unintentional loss of sensitive information.

By implementing DLP, organizations can take a strategic stance on managing their data security, ensuring that sensitive information is handled properly throughout its lifecycle, particularly in scenarios involving external sharing. This makes DLP a vital tool for safeguarding data and managing security risks effectively.