Whitepapers / Copilot Data Governance Framework

Governance & Security

Copilot Data Governance Framework

Securing AI in Microsoft 365

Published: January 10, 2026

40 min

9,800 words

Author: Copilot Consulting Team

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A governance-first approach to Copilot deployment. This framework addresses data exposure risks, permission sprawl, and compliance requirements across healthcare (HIPAA), financial services (SOC 2), and legal (attorney-client privilege) industries.

Table of Contents

  • Executive Summary

    Page 2

  • Introduction: The Copilot Readiness Challenge

    Page 5

  • Phase 1: Permission Audit & Data Exposure Assessment

    Page 10

  • Phase 2: Data Classification & Sensitivity Labels

    Page 18

  • Phase 3: DLP Policy Configuration

    Page 26

  • Phase 4: Compliance Validation (HIPAA, SOC 2, GDPR)

    Page 34

  • Phase 5: Risk Scoring & Remediation Roadmap

    Page 42

  • Conclusion: Next Steps

    Page 48

  • Appendix: PowerShell Scripts & Checklists

    Page 50

Key Takeaways

  • Comprehensive permission audit methodology using PowerShell scripts and Microsoft Graph API

  • Step-by-step data classification framework with sensitivity label templates

  • DLP policy configuration guide for preventing data exposure via Copilot

  • Compliance validation checklists for HIPAA, SOC 2, GDPR, and attorney-client privilege

  • Risk scoring methodology: Red/Yellow/Green tenant readiness assessment

  • Remediation roadmap templates with timelines and resource requirements

Topics Covered

Data Governance
DLP Policies
Sensitivity Labels
Compliance
Security Framework
HIPAA
SOC 2

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