Regulated Industry Compliance
Industry-specific Microsoft compliance controls for healthcare, financial services, government, and education.
Microsoft Compliance for Regulated Industries
Quick Answer: Each regulated industry requires specific Microsoft configuration controls per service (Exchange, SharePoint, Teams, Azure, Power BI, Copilot). Healthcare needs HIPAA PHI safeguards, Financial Services needs SOC 2/FINRA communication compliance, Government needs FedRAMP GCC/GCC High tenants, and Education needs FERPA student data protections. Microsoft holds 100+ compliance certifications, but organizations must implement the configuration-level controls. EPC Group provides industry-specific compliance accelerators starting at $25,000.
EPC Group has implemented compliance configurations for every major regulatory framework on Microsoft platforms. Below is our detailed control matrix showing exactly what needs to be configured in each Microsoft service for each regulated industry.
Compliance Controls by Industry & Microsoft Service
Healthcare
HIPAA / HITRUST
| Microsoft Service | Required Compliance Controls |
|---|---|
| Exchange Online | OME encryption for PHI emails, transport rules detecting PHI patterns (SSN, MRN), DLP blocking external PHI sharing, retention policies (7 years) |
| SharePoint Online | Sensitivity labels on PHI sites, guest access disabled on PHI content, Azure AD Conditional Access for clinical users, versioning and audit logging |
| Microsoft Teams | DLP for PHI in chats/channels, information barriers (clinical vs admin), retention for clinical conversations, compliance recording |
| Azure | Private Link for data isolation, Key Vault for encryption keys, Defender for Cloud monitoring, BAA scope verification for all Azure services |
| Power BI | Row-level security for PHI access, sensitivity labels on reports/datasets, Premium capacity isolation, export restrictions on PHI dashboards |
| Copilot | Pre-deployment PHI access audit, sensitivity label enforcement, DLP for Copilot outputs, approved clinical use case policies, Copilot audit logging |
Financial Services
SOC 2 / FINRA / SEC
| Microsoft Service | Required Compliance Controls |
|---|---|
| Exchange Online | Communication compliance monitoring, 17a-4 compliant archiving, supervision policies for advisor communications, encryption for client data |
| SharePoint Online | Information barriers (Chinese walls), client data isolation, document classification (confidential, internal, public), retention for regulatory periods |
| Microsoft Teams | Communication compliance for trading desk, retention for financial communications, DLP for financial data (account numbers, SSN), meeting compliance recording |
| Azure | SOC 2 control mapping in Compliance Manager, Key Vault with HSM for cryptographic keys, Sentinel for security monitoring, Defender for Cloud compliance dashboard |
| Power BI | RLS for client data segregation, audit logging for all report access, Premium isolation for sensitive financial analytics, export restrictions for MNPI reports |
| Copilot | Information barriers preventing cross-team data surfacing, MNPI-labeled content excluded from Copilot, communication compliance for Copilot-generated content, audit trail |
Government
FedRAMP / CMMC / NIST
| Microsoft Service | Required Compliance Controls |
|---|---|
| Tenant | GCC or GCC High tenant required (not commercial), data residency in U.S. data centers, background-checked Microsoft personnel, separate network infrastructure |
| Exchange Online | FIPS 140-2 encryption, CUI marking in email headers, DLP for CUI patterns, retention per NARA records schedules |
| SharePoint Online | CUI sensitivity labels, external sharing disabled by default, site classification (CUI, FOUO, Public), access reviews for cleared personnel |
| Azure | Azure Government region only, FedRAMP High baseline controls (NIST 800-53), continuous monitoring with Sentinel, vulnerability scanning with Defender |
| Power BI | GCC/GCC High Power BI, RLS for need-to-know access, export restrictions for CUI content, audit logging for FISMA reporting |
| Copilot | GCC Copilot availability verification, CUI handling restrictions, NIST 800-53 control mapping for AI systems, authorized use policies |
Education
FERPA / COPPA
| Microsoft Service | Required Compliance Controls |
|---|---|
| Exchange Online | Student record DLP policies, parental consent workflows for minors, directory information vs non-directory classification, retention per state requirements |
| SharePoint Online | Student data sensitivity labels, faculty/staff vs student permission boundaries, research data isolation (IRB-approved), FERPA-compliant external sharing policies |
| Microsoft Teams | Supervised chat for minors (COPPA), class team lifecycle management, guest access policies for parent portals, student data DLP |
| Azure | Student data encryption, research data isolation, Defender for Cloud monitoring, backup and recovery for student records |
| Power BI | RLS for student data access (counselors vs teachers vs admin), de-identification for aggregate reporting, export restrictions on student-level data |
| Copilot | Student record exclusion from Copilot access, faculty-only Copilot for administrative tasks, FERPA training for Copilot users, approved use case policies |
Frequently Asked Questions
Which Microsoft compliance certifications does Microsoft hold?
Microsoft holds 100+ compliance certifications for Azure, M365, and Dynamics 365 including: HIPAA BAA, SOC 1/2/3, FedRAMP High (Azure Government), CMMC (in process), ISO 27001/27017/27018, PCI DSS, HITRUST CSF, GxP, ITAR, DoD IL2-IL6, GDPR, CCPA, FERPA, COPPA, and many more. However, Microsoft certifications cover the platform — organizations must still configure Microsoft services correctly and implement organizational controls. EPC Group bridges this gap by implementing the configuration-level compliance that Microsoft platform certifications assume.
What is the shared responsibility model for compliance?
Microsoft is responsible for: physical security of data centers, network security, host-level security, and platform compliance certifications. Organizations are responsible for: data classification, access controls, DLP policies, encryption configuration, audit log retention, user training, incident response, and regulatory reporting. EPC Group manages the organization-side responsibilities — the 60-70% of compliance work that Microsoft platform certifications do not cover.
Can I use the same Microsoft tenant for multiple compliance frameworks?
Yes, with careful configuration. A single M365 tenant can support HIPAA, SOC 2, GDPR, and other frameworks simultaneously using: sensitivity labels to classify data by regulation, information barriers to separate regulated departments, Conditional Access policies for different user populations, multiple DLP policies targeting different data types, and separate compliance assessments in Microsoft Compliance Manager. EPC Group designs multi-framework compliance architectures that satisfy overlapping requirements without creating operational complexity.
How does Microsoft Compliance Manager work?
Microsoft Compliance Manager provides a centralized dashboard for managing compliance across 350+ regulatory templates. It calculates a compliance score based on implemented controls, provides step-by-step improvement actions, tracks evidence and documentation, and generates audit-ready reports. Key features: pre-built assessment templates for HIPAA, SOC 2, GDPR, FedRAMP, and more; automated testing of Microsoft-managed controls; manual evidence upload for organization-managed controls; and continuous score monitoring. EPC Group configures Compliance Manager as the compliance operating hub for every regulated client.
What Microsoft licensing is needed for compliance?
Compliance features by license tier: M365 E3 ($36/user/month): basic DLP, retention, audit log (90 days), Compliance Manager (basic). M365 E5 ($57/user/month): advanced DLP, eDiscovery Premium, Insider Risk Management, Communication Compliance, Information Barriers, Advanced Audit (1-year retention), Compliance Manager (full). For HIPAA, SOC 2, and FedRAMP, EPC Group recommends E5 for all users handling regulated data. For FedRAMP, GCC or GCC High tenants are required at additional cost.
How often should compliance configurations be reviewed?
Compliance review cadence: Weekly — DLP incident review, audit log anomaly review. Monthly — Compliance Manager score review, policy effectiveness assessment. Quarterly — full compliance configuration review, updated risk assessment. Annually — comprehensive compliance audit, regulatory change assessment, control testing. After changes — any significant Microsoft service change, organizational restructuring, or new regulation. EPC Group managed compliance services include all of these review cadences as part of our engagement.
Get Compliance-Ready on Microsoft
Schedule a free compliance assessment for your industry. We will map your regulatory requirements to specific Microsoft controls and deliver a compliance roadmap.