IT Compliance for Non-Technical Executives

5 Microsoft 365 Settings Every Business Should Turn On

Written by Brent Kenreich | Feb 19, 2026 5:15:01 PM

 

Microsoft 365 is one of the most powerful business platforms available.

But here’s the problem:

Out of the box, it’s not fully secure.

Many companies in Columbus and Central Ohio assume Microsoft automatically protects everything. In reality, many critical security features must be manually configured.

If they aren’t, your business is far more vulnerable to phishing, data breaches, and account takeovers.

Here are five essential Microsoft 365 settings every organization should enable.

1. Multi-Factor Authentication (MFA) for All Users

If you only turn on one setting, make it this one.

Multi-Factor Authentication (MFA) requires users to verify their identity with something besides a password—such as a mobile app, text message, or security key.

Why It Matters

Over 80% of business breaches involve stolen or weak passwords.

With MFA enabled:

  • Stolen passwords become useless
  • Account takeovers drop dramatically
  • Insurance compliance improves
What We See Too Often

Many businesses enable MFA only for admins—or not at all.

That leaves most users exposed.

MFA should be enabled for every account.

2. Conditional Access Policies

Conditional Access controls when, where, and how users can log in.

It allows Microsoft 365 to automatically block risky behavior.

Why It Matters

Conditional Access can:

  • Block logins from foreign countries
  • Require MFA on unknown devices
  • Restrict high-risk sign-ins
  • Stop suspicious sessions
Example

If someone tries to log in from overseas using stolen credentials, access is denied automatically.

No manual intervention required.

Without this, attackers often log in undetected.

3. Advanced Phishing & Impersonation Protection

Most cyberattacks today start with email.

Microsoft provides powerful tools to detect:

  • Fake invoices
  • CEO impersonation
  • Vendor fraud
  • Credential-harvesting links
  • Malicious attachments

But many businesses never enable them properly.

Why It Matters

Basic spam filtering is not enough.

Advanced protection:

  • Analyzes sender behavior
  • Scans embedded links
  • Flags impersonation attempts
  • Rewrites unsafe URLs

This dramatically reduces successful phishing attacks.

Learn more about phishing risks:
➡️ /why-phishing-still-works

4. Data Loss Prevention (DLP) Policies

Data Loss Prevention (DLP) helps stop sensitive information from leaving your organization accidentally—or intentionally.

It monitors files and emails for:

  • Social Security numbers
  • Financial data
  • Medical information
  • Confidential documents
Why It Matters

Without DLP, employees can unknowingly:

  • Email private data externally
  • Upload sensitive files to personal drives
  • Share protected documents publicly

DLP creates guardrails without slowing people down.

5. Secure Backup & Retention Policies

Many businesses believe Microsoft automatically backs up everything.

That’s only partly true.

Microsoft provides retention—but not full business-grade backup.

Why It Matters

Without proper policies and backups, you risk losing:

  • Deleted emails
  • Overwritten files
  • Ransomware-encrypted data
  • Former employee data

Strong retention + backup ensures:

  • Faster recovery
  • Compliance support
  • Ransomware resilience

Learn more:
➡️ /backup-disaster-recovery

Why These Settings Are Often Missing

In our experience, most small and mid-sized businesses lack these protections because:

  • Microsoft doesn’t enable them by default
  • Setup is complex
  • No one “owns” security
  • Internal IT is overloaded
  • Previous providers didn’t configure them

The result? A powerful platform running below its security potential.

How Secure Is Your Microsoft 365 Right Now?

Ask yourself:

  • Does every user have MFA?
  • Are risky logins blocked?
  • Is phishing protection fully enabled?
  • Are sensitive files protected?
  • Could we recover data tomorrow if needed?

If you’re unsure, that’s a sign your tenant needs review.

How Managed IT Helps Secure Microsoft 365

A qualified MSP helps by:

  • Designing security policies
  • Monitoring sign-in risks
  • Managing licenses properly
  • Updating protections
  • Documenting compliance
  • Responding to incidents

Learn more:
➡️ /micorosoft-license-review-management

How Cloud Cover Supports Microsoft 365 Security

At Cloud Cover, we help Central Ohio businesses:

✔ Secure Microsoft 365 tenants
✔ Configure MFA and access controls
✔ Reduce phishing exposure
✔ Protect business data
✔ Support cyber insurance compliance
✔ Prepare for AI and Copilot safely

➡️ /cybersecurity-services

Frequently Asked Questions

Is Microsoft 365 secure by default?

Microsoft provides strong tools, but many advanced protections must be manually configured to be effective.

Do small businesses really need these settings?

Yes. Small businesses are frequent targets and often lack layered defenses.

Will these settings slow down employees?

When properly configured, they improve security with minimal impact on productivity.

How often should settings be reviewed?

At least annually, and whenever major changes occur.

Start With a Microsoft 365 Security Review

A Microsoft license review and IT assessment shows exactly how your tenant is configured—and what needs improvement.

➡️ See what’s included:
/it-assessment-what-to-expect

➡️ Do you need a Microsoft license review?
/free-365-license-audit

Final Thoughts

Microsoft 365 is only as secure as its configuration.

With the right settings, it becomes a powerful, resilient business platform.

Without them, it’s an easy target.

If you want confidence in your environment, start with visibility.

Want to talk to us about setting up your Microsoft environment? Schedule a quick call to get the ball rolling.