Task 1.3: Sensitivity labels applied to files
The “Sensitivity labels for files” reports help you control access to sensitive content by finding sites storing Office files that have sensitivity labels applied. You can review these sites to ensure the correct policies are applied.
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On the Data access governance page, under Sensitivity labels applied files, select View reports.
You can add reports only for sensitivity labels with a scope that includes File.
For more details on configuring sensitivity labels on SharePoint, explore this article:
Configure a default sensitivity label for a SharePoint document library