On an Android, am I required to accept the security settings update?

After configuring Android for Exchange, Android will display the following message:

Account "Connect" requires security settings update.

You are required to act upon this message before you can use Exchange email or calendar. If you try to access your Exchange email before activating the required security changes, you will automatically be taken to the Update Security Settings screen (see below). Your Exchange calendar will not be available until you activate the required security changes.

To act upon this message, do the following:

  1. Swipe down from the notifications bar at the top of your screen to open the notifications screen.
    • If you try to access your Exchange email, you will automatically be taken to this screen.
  2. Press the new notification labeled Update Security Settings.
  3. The notification says, Activate device administrator? The server outlook.office365.com requires that you allow it to remotely control some security features of your phone. The following items are listed below this message. The wording of these items varies between carriers and versions of Android.
    • Erase all data
    • Set password rules / Limit password
    • Monitor screen-unlock attempts / Watch login attempts
    • Lock the screen / Force lock
    • Set lock-screen password expiration
    • Set storage encryption
  4. Click Activate.