Changing or removing a sensitivity label in Power BI can have important implications for data protection, access controls, and integration with Microsoft 365 compliance features.
1. Removing a Sensitivity Label:
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When a label is removed, any associated protection settings—such as encryption, watermarking, or access restrictions—are also removed.
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This means that content previously protected under that label becomes unprotected, potentially increasing the risk of data exposure.
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If the label was applied through Microsoft Purview, it may also affect how that item is tracked in the Microsoft 365 compliance center.
2. Changing a Sensitivity Label:
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Changing to a less restrictive label may downgrade security settings and remove protections like encryption or restrictions on copying/sharing.
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Changing to a more restrictive label automatically updates the protections—such as enabling encryption or blocking sharing with external users—based on the new label’s policy.
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The update is applied across Power BI Service, and any exported copies (e.g., PDFs, Excel) inherit the new label’s protection.
3. External Integration Impact:
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Power BI content with sensitivity labels integrates with Microsoft 365 apps (e.g., Excel, Outlook) and Purview compliance—so label changes can impact how content is classified or logged externally.
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Alerts or logs in Microsoft Purview may be triggered if highly sensitive content is downgraded or unprotected.
