The objects that has a security label should be kept secret. Therefore the information should not be disclosed in objects it is a part of.
If a EPMdoc has a security label, the WTPart connected should automatically have the same security label.
The assembly where a member is security labeled, should also be labeled. Otherwise the representations will be disclosing the geometry of the part. This goes all the way to the top assembly and the corresponding BOM parts.
Another reason for labeling the upstream objects is that the person handling the information, can immediately see that it needs to be handled within the rules of the security restrictions.
Today the security label editor uses the normal collect actions. It would be nice if the collect actions where "Where used".
I would like to have a function where the security label values are applied upstream automatically, but a scheduled job could do it as a start.