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You are a Microsoft 365 administrator for a company.You need to ensure that company documents are marked as confidential. You must prevent employees from sharing documents with people outside the company.

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Final answer:

To ensure company documents are marked as confidential and prevent external sharing, a Microsoft 365 administrator can utilize Information Rights Management (IRM), Azure Information Protection, and Data Loss Prevention (DLP) policies, alongside employee training on data security.

Step-by-step explanation:

Managing Document Confidentiality and Sharing in Microsoft 365

As a Microsoft 365 administrator tasked with maintaining the confidentiality of company documents and preventing employees from sharing these with external parties, there are multiple strategies and features that can be employed. The use of Information Rights Management (IRM) in services like SharePoint and OneDrive for Business, allows you to restrict the actions that users can take on files that you share. This includes preventing recipients from sharing the documents with others. Additionally, implementing Azure Information Protection will enable you to classify, label, and protect documents based on company policies. You can designate documents as confidential, and enforce policies that control access and sharing accordingly. Moreover, using Data Loss Prevention (DLP) policies helps prevent sensitive information from being accidentally or intentionally shared outside the corporate network. Regular training and communication with employees about the importance of data security and proper use of email and collaboration tools are also vital to ensure compliance with company policies on document sharing.

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