Is creating a custom sensitive information type a valid way to prepare for a custom sensitivity label?

Creating a custom sensitive information type is indeed a valid way to prepare for a custom sensitivity label in Microsoft Azure. Sensitive information types are crucial for data classification and protection, as they enable your organization to identify and manage sensitive data such as personally identifiable information (PII), financial data, or health records.

When you create a custom sensitive information type, you establish specific criteria that help the Microsoft 365 compliance solutions recognize this type of sensitive data. This can be done by defining unique patterns or keywords that the system will look for within documents and emails.

Once you've defined a custom sensitive information type, you can link it to a custom sensitivity label. This label can then be applied to documents and emails that contain the identified sensitive information, enforcing protection measures such as encryption, rights management, or visual markings. Thus, creating the custom sensitive information type is an essential step to ensure that your custom sensitivity labels are accurately identifying and protecting classified data within your organization.