Protect Confidential Data in Power BI Using Sensitivity Labels

When collaborating in Power BI, it's essential to ensure that sensitive data does not end up in the wrong hands. Microsoft offers a powerful governance tool for this purpose: Microsoft Purview. Through its Compliance Center, organizations can apply sensitivity labels to control access, sharing, and usage of data - both inside and outside Power BI.
Nov 13 / datatraining
What Are Sensitivity Labels?

Sensitivity labels help organizations control:
  • Who can access or share reports
  • Whether content can be downloaded or exported
  • How confidential information is handled

These labels can be applied to files such as PDFs, Excel workbooks, and Power BI reports.

Applying Sensitivity Labels in Power BI
 
To begin, sensitivity labels must be:
1. Created and configured in Microsoft Purview Compliance Center
2. Enabled within Power BI Admin Portal

Step-by-Step Setup

1. Enable Sensitivity Labels in Power BI
Go to:
Power BI Admin Portal → Information Protection
Enable labels and choose scope: entire organization or specific groups.

2. Explore Existing Labels

In Power BI Service:
  • Navigate to a workspace
  • Look for the "Sensitivity" column
  • Open a report to view or change the current label
Hovering over the label gives a description. Changing the label may require permission and justification, depending on organizational policies.

3. Create a New Sensitivity Label (In Compliance Center)

Navigate to:
Microsoft Purview → Compliance Center → Information Protection → Labels
1. Create a new label (e.g., “Private”)
2. Set:
  • Name and display name
  • Description for users and admins
  • Color coding (optional)

4. Configure Encryption & Restrictions
Define:
  • Encryption rules (e.g., restrict download, enforce login)
  • Expiration settings (e.g., after specific date)
  • Offline access
  • User/group permissions (e.g., only certain users can open data)

5. Add Label to a Policy

Once created, the label must be added to a policy to become visible in Power BI.
1. Go to Label Policies
2. Edit an existing policy or create a new one
3. Add the new label
Note: It can take up to 24 hours for new labels to appear.

Applying a Label in Power BI

Once synced, apply a label:
  • In the report/workspace settings
  • Under “Sensitivity” section

How Labels Enforce Protection

Example 1: Export to Excel
When a Power BI report with a sensitivity label is exported:
  • The Excel file inherits the label
  • Restrictions follow the file

Example 2: Using Sensitive Datasets in Excel

When connecting Excel to a Power BI dataset:
  • Sensitivity label appears in Excel
  • Users may see a banner indicating restricted content
  • Watermarks and restrictions apply automatically

Example 3: Upgrading to Higher Sensitivity

If you upgrade a dataset label to “Highly Confidential”:
  • Excel connected files update accordingly
  • The most restrictive label always takes precedence
Summary

Feature

Description

Sensitivity Labels

Mark reports/files to protect confidential data

Compliance Center

Create, manage, and assign sensitivity labels

Power BI Integration

Labels follow content through export and external use

Restrictions

Control download, sharing, and visibility rights



Final Thoughts

  • Permissions matter: Not all users can apply or change labels
  • Labels can include watermarks and expiration
  • Labels travel with content across Power BI and Microsoft 365

Sensitivity labels are a key component of data governance, helping ensure sensitive Power BI content is only accessed and shared according to company policy.


Hope you like it!

Give it a try and see how it works for you! I’d love to hear what you think or see how you use this trick in your own reports.

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