Microsoft Dynamics 365 Fundamentals Practice Exam

Is it necessary to create a key to enable encryption in D365?

1. Yes, you must create your own key

2. No, Microsoft provides the key automatically

3. Only for sensitive data

4. Only in on-premises deployments

The correct answer is: No, Microsoft provides the key automatically

In Microsoft Dynamics 365, it is not necessary for users to create their own encryption key because Microsoft automatically handles key management within the platform. This automatic provision of keys simplifies the encryption process for users, ensuring that data at rest and in transit is securely managed without requiring manual intervention. By managing keys in this way, Microsoft can help reduce the risk of mismanagement associated with key creation and storage, which is especially beneficial for organizations that may not have extensive cybersecurity expertise. Moreover, the automatic key management integrates with Azure's security protocols, providing a higher level of security and compliance with various regulatory requirements. This approach allows users to focus on utilizing the software's functionalities rather than getting bogged down with the complexities of cryptographic key management. The other options imply either manual key creation or limitations based on the type of data or deployment, which do not align with the standardized security framework deployed by Microsoft for Dynamics 365.