Define your sensitivity labels

Microsoft recommends following three steps to define sensitivity labels within your organization.

  1. Define the labels. Establish your taxonomy for defining levels of sensitive content. You should use common names or terms that make sense to your users.

    For example, you can use or modify these default labels:

    • Personal
    • Public
    • General
    • Confidential
    • Highly confidential

    When you create a custom label, you should also create a tool tip. The tool tip appears in Office apps when a user hovers over a label option on the Ribbon.

  2. Define what each label does. Configure the protection settings you want associated with each label.

    For example, lower sensitivity content (a “General” label) might have a header or footer applied to it. Higher sensitivity content (a “Confidential” label) might have a watermark, encryption, and work-in-process (WIP) applied to help ensure that only privileged users can access it.

  3. Define who sees the labels. After you define your organization’s labels, you publish them in a label policy that controls which users and groups see those labels. A single label is reusable; you define it once, and then you can include it in several label policies assigned to different users.