Question

What are sensitivity labels in Power BI, and why are they important?
I need to understand the concept of sensitivity labels in Power BI and their role in data governance. The explanation should include how these labels help in protecting confidential information and ensuring compliance with organizational or regulatory policies.

Answer 1

In Power BI, sensitivity labels—such as "Confidential," "Highly Confidential," or "Public"—are metadata tags that are used to categorize and safeguard data according to its level of sensitivity. These labels, which are a component of Microsoft Purview Information Protection, assist businesses in applying data governance and security guidelines uniformly across Power BI and other Microsoft 365 services.

Sensitivity labels enforce encryption, access restrictions, and usage controls both inside and outside the Power BI service when applied to datasets, reports, or dashboards. A report marked "Highly Confidential," for instance, retains the label and its protection settings (such as prohibiting printing or forwarding) when it is exported to an Excel or PDF file.

Sensitivity labels are crucial for organizations because they help them avoid illegal access to data, stay in compliance with laws like GDPR and HIPAA, and facilitate safe departmental and external user collaboration. Businesses can proactively manage data risks without sacrificing usability by integrating classification into the Power BI workflow.