DLP Pilot - User Guide - Applying Sensitivity Labels to Microsoft 365 Documents

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Apply Sensitivity Labels to to Microsoft 365 Documents

Purpose 

Sensitivity labels help protect organizational data by classifying documents based on their level of sensitivity. Applying the correct label ensures that confidential information is handled, shared, and protected appropriately.

What Are Sensitivity Labels? 

Sensitivity labels are Microsoft 365 classifications that help: 

• Identify the sensitivity of information 

• Protect documents from unauthorized access 

• Apply encryption and access restrictions 

• Track and govern sensitive content 

• Support compliance and data protection requirements 

Examples of labels may include: 

• Public 

• Internal 

• Confidential 

• Highly Restricted

Before You Begin 

Ensure: 

• You are signed in to Microsoft 365 with your organizational account. 

• The document is saved to OneDrive, SharePoint, or a local drive. 

• Microsoft 365 sensitivity labeling is enabled for your organization. 

How to Apply a Sensitivity Label 

Method 1: Apply a Label to a New or Existing Document 

1. Open the Microsoft 365 document. 

2. On the Home tab, locate the Sensitivity button in the ribbon. 

3. Select Sensitivity. 

4. Choose the appropriate label from the list. 

5. If prompted, provide a business justification. 

6. Save the document. 

Example 

Home > Sensitivity > Confidential 

After selecting the label, protection settings may automatically apply. 

Method 2: Apply a Label from the File Menu 

1. Open the document. 

2. Select File. 

3. Select Info. 

4. Locate the Sensitivity option. 

5. Choose the appropriate label. 

6. Save the document.

Understanding Label Effects 

Depending on the selected label, Microsoft may automatically add protection features: 

Changing a Sensitivity Label 

If document content changes: 

1. Open the document. 

2. Select Sensitivity. 

3. Choose a different label. 

Note 

Justification is required when: 

• Downgrading a label (for example, Confidential to Internal) 

• Removing a label completely 

Viewing the Current Label 

You can verify a document's classification by: 

• Looking at the Sensitivity button on the ribbon. 

• Checking the status bar. 

• Opening File > Info. 

The current label will be displayed. 

Recommended Labeling Guidelines 

Public 

Use for information approved for external distribution. 

Examples: 

• Marketing brochures 

• Public website content 

• Published reports 

Internal 

Use for routine business information intended only for employees. 

Examples: 

• Team procedures 

• Internal communications 

• Training materials 

Confidential 

Use for sensitive business information. 

Examples: 

• Student data 

• Finance data 

• Certain research data 

Highly Restricted 

Use for critical or highly restricted information. 

Examples: 

• Protected Health Information 

• Personally Identifiable Information (ex. SSN) 

• Restricted research data 

• Payment Card Industry data 

Best Practices

✅ Apply a label as soon as the document is created. 
✅ Review the label before sharing a document. 
✅ Use the highest appropriate classification when uncertain. 
✅ Periodically verify labels on existing documents. 
✅ Follow organizational data handling policies. 

Troubleshooting

Sensitivity Button Not Visible 

Try the following: 

1. Confirm that you are signed in with your work account. 

2. Restart Microsoft program. 

3. Update Microsoft Office. 

4. Contact Enterprise Data Management Support Services ticket queue at: Request Form - Enterprise Data Management Support  and select the DLP Labeling ticket type. 

Unable to Change a Label 

Possible reasons: 

• The document is protected by policy. 

• Administrative restrictions are in place. 

• Additional approval or justification is required. 

Label Not Applying 

1. Save and close the document. 

2. Reopen the file. 

3. Reapply the label. 

4. Contact Enterprise Data Management Support Services ticket queue at: Request Form - Enterprise Data Management Support  and select the DLP Labeling ticket type if the issue persists. 

Frequently Asked Questions

Q: Can I remove a sensitivity label? 

Yes, if organizational policy permits it. Some label removals require justification or approval. 

Q: Does a label stay with the document when shared? 

Yes. The label typically travels with the document and any associated protection settings remain in effect. 

Q: What happens if I select the wrong label? 

Change the label to the correct classification as soon as possible and follow your organization's data handling procedures.

Summary

Applying sensitivity labels helps protect company information and ensures compliance with organizational policies. Always select the label that best reflects the sensitivity of the information contained within the document before saving or sharing it.