Microsolve Business IT Insights

Microsoft 365 Data Protection: What Most Organisations Miss

Written by Dale Jenkins | 23 June 2026 12:45:02 AM

Microsoft 365 is already at the centre of how your organisation works. The real question is whether it is also at the centre of how you protect your data.

Too often, security is something that “got added later.” It looks a few settings turned on. A policy or two. Maybe Multi-factor authentication (MFA) for admins if they're feeling real crazy. (And a quiet hope that it’s enough.) It rarely is.

It's time to bring Microsoft 365 back to basics!!

Security boils down to this: data protection comes first. Not more tools. Not more noise. Just a clear, practical way to harden what you already have without slowing people down.

The Gap Most Organisations Have

Most environments we review looks pretty similar. Microsoft 365 is mostly adopted and staff rely on tools like Teams, SharePoint, OneDrive and email every day. Access has grown organically and yet, security remains inconsistent across users and devices. It's here where the uncomfortable questions start to pop up. Things like:

  • Who can access sensitive files?
  • Are shared accounts still in use?
  • What happens if a laptop is lost?
  • Can you prove what was accessed and when?

If those answers don't come immediately, you're not alone, but you are at risk. Attackers are not looking for complex weaknesses. They look for gaps in identity, devices, and data controls. Microsoft 365 can close those gaps, but only if it is configured deliberately.

Cleaning the Foundations

Before ANYTHING is changed, get some visibility!  This is not just an internal mantra for our team, but it is best practice (and common sense in a world where that doesn't often exist!).

You need a simple, honest, complete snapshot of your environment:

  1. How many tenants and domains are in use?
  2. What licences are assigned (Business Premium, E3, E5)?
  3. Which services actually matter to your operations?
  4. Who are your user groups (staff, contractors, leadership)?
  5. Who has access to the Global Admin accounts?

When I say it needs to be simple, I mean it. Don't waste your time writing a 40 something paged document. It just needs to be accurate, not a literary endeavour.

From there, define a minimum baseline. Think of this as your "non-negotiables".

  • Modern authentication only (no legacy protocols)
  • Multi-factor authentication for all users
  • Conditional Access for privileged roles
  • Managed devices for anyone handling sensitive data
  • Backups for Microsoft 365 data

Yes backups.

I cannot overstate this, retention policies are Not backups. 

If you are using Microsoft 365 Business Premium, you already have most of what you need. The issue is rarely licensing. It's (lack of) configuration that causes the most problems.

 

The Three Pillars That Matter

You don't need dozens of controls. You need three done well.

1. Identity (Who is accessing your data)

This is your front door. You wouldn't leave the house and leave it unlocked for anybody walking past to waltz on in and grab whatever they wanted, so why would you leave your organisation exposed?

  • Every user needs their own unique account. No shared logins.
  • MFA must be enforced across the board.
  • Admin roles should be tightly controlled.
  • Conditional Access needs to apply context (location, device, risk).

For example, a finance user logging in from an unknown overseas location from a personal device should trigger stronger authentication or be blocked entirely! If that's not what is happening already, your identity layer is far too open and you need to change that ASAP!

2. Devices (Where access happens)

Devices are typically where the consistency element breaks down. Each staff member may have a differing preference for the kind of device they want to use. That means a myriad of builds, patch levels and policies that make it very difficult to confidently secure each one. 

Standardising devices through Intune changes that through:

  • Enforcing encryption
  • Removing local admin rights
  • Applying security baselines
  • Keeping systems patched automatically

For shared environments, you need to set clear patterns:

  • Fast sign-in and sign-out
  • No data stored locally
  • Automatic session cleanup

This reduces both risk and support overhead. (Believe me, your IT team will thank you for it.)

3. Data (What you are protecting)

This is where most organisations struggle. Data is everywhere. It's often duplicated, mislabled, misplaced and misclassified. A good starting point is just making it visible and structured. We recommend:

  • Using Teams and SharePoint for collaboration
  • Using OneDrive for individual work
  • Keeping records of truth in defined systems

Once you've done that, it's time to layer in protections like:

  • Sensitivity labels (e.g. Internal, Confidential)
  • Controlled sharing rules
  • Restrictions on unmanaged devices

This means that a confidential document for example, shouldn't be downloadable to a personal device or shared externally without approval. Once again, backups matter. Whether your data is on Exchange, SharePoint, OneDrive or Teams, everything should be recoverable independently of Microsoft's retention settings.

 

Governance Does Not Need to be Heavy

Governance fails when it becomes too complex to understand or practically implement. Simple, consistent rules across the organisation are the key to successful data protection. Start with a few areas:

  • Whwn should a new Team be created?
  • Who can invite external users?
  • How are sites named?
  • When are inactive sites archived?

A handful of policies like those are enough to prevent a spiral into chaos. You can refine and alter these later as things change and organisations grow or shrink. You just need a solid starting point. Once you've done that, we recommend introducing a light rhythm. This can look like quarterly reviews, regular access clean-ups - especially when there's staff turnover - and ongoing policy tuning. It's also good to track a handful of metrics to show how well these policies are working. These can be:

  • MFA coverage
  • Device compliance
  • External sharing levels
  • Phishing success rates
  • User provisioning time

If you cannot measure it, how do you expect to be able to improve it? (Here's a hint: You can't!)

Keep it Usable

Security that slows people down and hinders their day-to-day ends up being bypassed. The reality is if there's no flexibility and it can't keep up with the pressures of a fast-paced or unpredictable industry like aged care, healthcare or professional services, then it will get sidelined in favour of speed and convenience. 

The goal isn't maximum restriction. It's controlled flexibility.

  • Staff should access what they need quickly
  • Authentication should be strong but not intrusive
  • Systems should work the same way everywhere

This is where training comes in. No one wants to sit through hours of cheesy, hypothetical scenario videos or role-playing. Training should be short, role-based, practical and to the point. It shouldn't be detracting from critical work and it should focus on real risks, not hypotheticals. This includes:

  • Phishing emails
  • Invoice fraud
  • Unexpected file sharing

Annual training sessions with everyone in a big group do not change behaviour. Regular, short reminders do.

Where Most Organisations Land

When Microsoft 365 is configured well:

  • Access is clear and controlled
  • Devices are predictable
  • Data is structured and protected
  • Staff work without friction

When it is not:

  • Security gaps grow quietly
  • Workarounds appear
  • Risk increases without visibility

The difference is not technology. It's intent and follow-through.