Power Platform DLP: Guardrails for Safe and Secure Innovation

As more organizations lean into Microsoft Power Platform to accelerate digital transformation, questions about governance naturally follow. One of the biggest areas to get right early on is managing how data flows between services — and that starts with connector control.

With more than 1,300 connectors available (and counting), having the right data loss prevention (DLP) strategy in place is no longer optional. It’s a key piece of ensuring Power Platform adoption remains scalable, secure, and aligned with the needs of both business users and IT.

Let us explore what DLP means in the Power Platform context, why it matters, and how to implement a practical strategy that keeps people productive, and data protected.  

What is DLP in Power Platform?

DLP policies define where data can go, which services can talk to each other, and what’s off limits. They give IT teams a way to apply guardrails without micromanaging every solution being built. Done right, DLP helps organizations strike the balance between control and flexibility, supporting innovation while ensuring data stays secure.

DLP policies also govern how connectors operate inside of Power Platform. Connectors enable apps, flows, and Copilot agents to move data between Microsoft 365 and other services — from SharePoint and Teams to external platforms like Salesforce, Twitter/X, and hundreds more. 

Why Power Platform Needs a DLP Strategy

Connectors empower users to create powerful automations and apps. However, that same ease can also lead to data unintentionally flowing in the wrong places.  

Users might accidentally connect sensitive business data to a personal email account. Or they could rely on a third-party service that doesn’t meet internal compliance standards. In some cases, they may not even realize which connector they selected if multiple versions exist with similar names. And because most connectors are available out of the box, the risk grows quickly without a plan in place. 

Here’s where DLP policies help: 

• Reduce Risk: DLP policies act as guardrails that help prevent unintentional data exposure by restricting how and where data can move across connectors.
• Support Compliance: They help ensure sensitive information stays protected and in line with internal policies and external regulatory requirements.
• Prevent Shadow IT: By blocking unapproved or risky connectors, DLP policies reduce the likelihood of users introducing unsanctioned tools into the environment.
• Enable User Guidance: With clear connector classifications in place, users know which services are safe to use, reducing guesswork and avoiding costly mistakes.  

A strong DLP strategy gives everyone, from IT to business users, clear guidelines for working safely within the platform. 

How Connector Classification Works

Connector governance starts with classification. Microsoft allows you to group connectors into three categories:

• Business: Approved connectors for organizational use, like Outlook, SharePoint, and Dataverse
• Non-Business: Consumer-grade or personal-use services, like Gmail or Weather application programming interface (APIs)
• Blocked: Services that are fully restricted from use 

Once categorized, DLP policies can control how data is shared. For example, a policy might allow SharePoint to communicate with Outlook but prevent it from sending data to Gmail. Blocked connectors are simply not available to users.

Most organizations start by creating a baseline DLP policy that only allows essential Microsoft 365 services and blocks everything else until it can be reviewed. Once that foundation is in place, additional policies can be introduced to support specific departments, applications, or business needs. 

Steps to Build a Scalable DLP Strategy

There’s no single right way to implement DLP, but the strongest strategies usually share a few key steps: 

1. Start with a baseline.

Review which connectors are currently in use and identify high-risk or unnecessary ones. This helps establish a foundation for your first policy. 

2. Classify all connectors.  

Assign each one to either the Business, Non-Business, or Blocked categories. This may involve input from both technical teams and business stakeholders. 

3. Apply policies to the right environments. 

Not every workspace should be governed the same way. Development or sandbox environments might need more flexibility, while production environments require tighter control. 

4. Put a request and exception process in place. 

Makers should be able to request access to additional connectors through a defined, auditable process. That way, governance doesn’t become a bottleneck. 

5. Review regularly.

Connector availability changes frequently. Build in a cadence, such as monthly or quarterly, to revisit what’s been added, what’s being used, and what needs to be adjusted. 

6. Communicate clearly.

Post your policies somewhere easy to find, like a SharePoint hub or governance center. Include guidance, policy names, what’s allowed, and how to request changes. 

DLP for Copilot and Agent Governance 

As organizations adopt Copilot Studio and Power Platform agents, DLP policies take on expanded responsibility. These intelligent tools are increasingly used to automate internal tasks, surface business insights, and connect across platforms like Teams, SharePoint, and public web channels. Without proper guardrails, they can also introduce new risks. 

DLP policies now allow admins to control: 

• Where agents can be published (e.g., Teams, SharePoint, external websites).
• Whether agents can use public websites as knowledge sources.
• If authentication is required before an agent can be used. 

These controls make it possible to restrict agents to internal audiences, limit data access, and prevent unintended publishing to external-facing experiences. For example, if an agent should only serve employees, authentication requirements can be enforced. If a business wants to avoid web-scraped knowledge sources, DLP can block them.

These policies offer a straightforward way to make sure agents remain aligned with internal governance while still providing meaningful value to users. 

What a Strong DLP Strategy Looks Like

A strong DLP strategy is clear, adaptable, and supported by repeatable processes. It starts with classifying connectors, but it doesn’t end there.  

Organizations with successful DLP programs often: 

• Maintain a regularly updated classification of connectors based on usage and risk.
• Apply a baseline policy in default and personal environments, allowing only essential Microsoft 365 connectors.
• Create additional policies for specific environments, departments, or solution types.
• Communicate policies through a central resource like a governance SharePoint site.
• Offer a simple exception process so users can request additional connectors when needed.

Policies should evolve alongside the business. New connectors are introduced constantly, and as Power Platform use grows, so does the range of supported use cases. Scheduled reviews ensure your DLP framework keeps pace without becoming overly complex. 

Aligning Your DLP with Your Environment Strategy 

DLP policies work best when they reflect the role and purpose of each environment. Applying the same policy everywhere might seem easier, but it often results in either too much restriction or too little protection. 

Instead, map DLP enforcement to environment types: 

• Development environments may support broader connector access for experimentation
• Production environments typically require stricter controls and a reduced connector list
• Departmental environments can be tailored to specific needs, like marketing automations or customer engagement tools 

This alignment creates space for innovation while maintaining appropriate oversight. It also makes policy management easier to scale, since each environment has a clear governance objective. 

Turning DLP Into a Strategic Enabler

As Power Platform continues to evolve, so too must the way organizations govern it. Data loss prevention policies are a foundational element of that governance — providing the connector-level control needed to manage risk, ensure compliance, and maintain visibility across a fast-moving ecosystem.

With a thoughtful approach to policy design, classification, communication, and review, DLP can help reduce the likelihood of data exposure while empowering users to build confidently. When integrated with environment strategies and supported by scalable tools, DLP becomes less of a reactive safeguard and more of a strategic enabler.

Explore how AvePoint supports Power Platform governance at scale.  

DLP is just one piece of the governance puzzle. If you’re looking ahead to Copilot and agentic AI, join our webinar to explore how AvePoint and Purview work together to enable AI readiness at scale: