This policy setting controls whether Office 2016 users can change permissions for content that is protected with Information Rights Management (IRM).
The Information Rights Management feature of Office 2016 allows individuals and administrators to specify access permissions to Word documents, Excel workbooks, PowerPoint presentations, InfoPath templates and forms, and Outlook e-mail messages. This functionality helps prevent sensitive information from being printed, forwarded, or copied by unauthorized people.
If you enable this policy setting, users can open and edit documents for which they have the appropriate permissions, but they cannot create new rights-managed content, add IRM to existing documents, change existing IRM permissions, or remove IRM from documents.
If you disable or do not configure this policy setting, Office 2016 users can add, remove, or change IRM permissions for documents if they are authorized to do so.