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In this tutorial, you will learn how to apply a Microsoft 365 sensitivity label to a SharePoint document library. By doing so, all files in the library will have the sensitivity label applied to them, encrypting them and adding watermarks. To achieve this, you will use Microsoft Cloud App Security file policies to apply governance actions directly to the document library. To start, go to the Microsoft Cloud App Security portal, click on settings, scroll down to information protection, find Azure Information Protection, and enable scanning new files and inspecting protected files. This setup will allow you to apply sensitivity labels effectively.