What is the function of sensitivity labels in Microsoft Information Protection?

The function of sensitivity labels in Microsoft Information Protection is to classify and protect documents and emails based on their sensitivity. Sensitivity labels allow organizations to classify data based on its level of sensitivity—such as public, internal, confidential, or highly confidential—and apply corresponding protection measures.

When a sensitivity label is applied to a document or email, it determines how that information should be handled, including who can access it, whether it can be shared externally, and what encryption or rights management policies should be enforced. This helps organizations to ensure compliance with data protection regulations and internal policies while safeguarding sensitive information from unauthorized access.

The ability to classify and protect data according to its sensitivity is critical for organizations to manage their information risk and to streamline data governance practices. Thus, the correct answer highlights the core purpose and function of sensitivity labels within Microsoft Information Protection.