Azure Policy: How to control your resources in Azure

Azure Policy is a Microsoft Azure service that allows you to create, assign and manage policies to control or verify resources in Azure. These policies ensure that resources in Azure comply with rules and regulations, business standards, and service level agreements. You can enforce these policies using management groups. Azure Policy evaluates and monitors its resources to ensure that they comply with the implemented policies. In this article, we are going to give a general overview of how the service works and the benefits it can bring to the security posture of your business.

What you'll find in this article

  • Azure Policy: a brief introduction
  • What is Azure Policy, and how does it work?
  • Azure Policy: What makes up a policy, and how is it implemented?
  • Azure Policy: benefits for IT professionals
  • Azure Policy: tips for implementing policies
Azure Policy: How to control your resources in Azure

Azure Policy: a brief introduction

The adoption of cloud computing is becoming increasingly widespread, but managing and controlling cloud resources can pose a daunting challenge for organizations.

The common need is to standardize and, in some cases, impose how resources are configured in the cloud environment. All this is done to obtain environments that comply with specific compliance regulations, control security, resource costs and standardize the design of the different architectures.

Obtaining this result, however, is not easy, especially in complex environments such as those of Azure, in which different groups of operators are developed and operated on subscriptions.

In this regard, it is recommended to use a mechanism that is provided natively by the Azure platform, which allows you to pilot governance processes to obtain the desired control, but without impacting speed, a fundamental element in modern IT based on resources in the cloud: Azure Policies.

Azure Policy is a service within Microsoft Azure that allows organizations to create, assign and manage policies. These policies define rules and effects on resources, identities, and groups, with the goal of ensuring compliance and maintaining security. The application of policies occurs in two ways: by reporting the non-compliance so that the team can solve the problem or by directly blocking the distribution.

In the context of Cloud Technical Governance, it is essential to define and apply rules that make it possible to ensure that Azure resources always comply with defined business standards. Thanks to the use of Azure Policies, even increasing the complexity and quantity of services, it is always possible to guarantee advanced control of your Azure environment.

What is Azure Policy, and how does it work?

Before delving into Azure Policy, it's important to understand what a security policy is, especially in the cloud context. A cloud computing security policy is a set of rules and guidelines that govern the protection of cloud-based systems and data.

Security policies are a critical part of strong identity and access management (IAM) in the cloud. IAM policies are essential for protecting data, limiting the identities that can access critical applications and resources.

In support of this concept, the Cloud Threat Landscape Report 2022 IBM found that, in 99% of the cases of cloud breaches analyzed by their teams, the identities had excessive privileges.

Azure Policy applies configurations to resources to ensure compliance with business and security standards. Unlike Azure role-based access control (RBAC), which manages user actions (who can access or modify a resource), Azure Policy focuses on the state of resources.

To simplify:

  • RBAC determines whom can create a storage account.
  • Azure Policy ensures that the storage account is encrypted, labeled, and configured according to organizational requirements.

This difference is critical for IT professionals who manage cloud governance at scale. With Azure Policy, you can automatically ensure that resources meet security requirements, cost management standards, and operational baselines.

Azure Policy applies to new resources created and may verify or correct existing resources that do not comply. For example, if a virtual machine lacks diagnostic settings, Azure Policy can report it or resolve the issue through corrective activities. This makes it a powerful tool both for preventing misconfigurations before they occur, and for correcting those that already exist.

Azure Policy works on multiple Azure subscriptions, resource groups and hybrid environments through Azure Arc (a solution that allows you to extend the services and management of the Azure cloud to external infrastructures), ensuring consistent governance regardless of scale. Whether it's managing the workloads of a single team or an entire enterprise deployment, Azure Policy offers automation, visibility, and control.

Azure policy for large scale data analysis in the cloud

Let's see in the table below a summary of the scope of the service.

Scope of Application of Policies in Azure

Scope Description
Management groups Provide a higher level of organization that allows applying policies and controlling access across multiple subscriptions simultaneously. They are especially useful for companies with complex environments, as they enable centralized policy management and consistent compliance on a large scale. They act as general security guidelines and can contain multiple subscriptions within them.
Subscription An Azure subscription represents a management unit for resource allocation and billing. Policies applied at the subscription level automatically affect all resources and resource groups within it. This level is useful for ensuring compliance at the company level and for establishing general rules applicable to all subscription resources.
Resource groups A resource group is a logical container for Azure resources such as virtual machines, databases, and networks. Applying policies at the resource group level allows configuration and compliance control for all resources within the group, ensuring an organized and manageable approach to resource governance. This level is useful for applying policies to specific teams or projects.
Individual resources Policies can also be applied to individual resources, offering detailed and granular control over configurations and access. This level is particularly useful when managing exceptions or applying specific rules to a resource without impacting the entire group or subscription. It enables precise and customized policy management for particular scenarios.

The operating mechanism of Azure Policies is simple.

When a request is made to configure an Azure resource through Azure Resource Manager (ARM), this is intercepted by the layer containing the engine that evaluates the policies. This engine performs an evaluation based on active Azure policies and establishes the legitimacy of the request.

The same mechanism is then repeated periodically or on specific request to assess the compliance status of existing resources.

In Azure there are already many built-in policies ready to be applied, or you can configure them according to your needs. The definition of Azure Policies is done in JSON and follows a very specific structure. You also have the option of creating Initiatives, which are a collection of multiple policies.

When you have the definition of the desired policy, it is possible to assign it to a Management Group, to a subscription and possibly in a more limited way to a specific Resource Group. The same is true for Initiatives. You also have the option to exclude certain resources from applying the policy if necessary.

After the assignment, it is possible to evaluate the state of compliance in detail and, if necessary, to apply remediation actions.

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Azure Policy: What makes up a policy, and how is it implemented?

At the heart of Azure Policy are two main components: policies and initiatives.

Policies in Azure are specific rules or guidelines, while initiatives are collections of policies that help achieve a larger compliance objective.

Let's see below what makes up a slightly more specific policy.

Components of Azure Policies

Component Description
Policy definition A policy definition specifies what to evaluate and what action to take. Each policy definition in Azure Policy has a set of conditions under which it is applied, and a corresponding effect that occurs if the conditions are met.
Policy effects Define what happens when the policy conditions are met. Some common effects include: Deny, Audit, AuditIfNotExists, Modify, Append, Disabled, and DeployIfNotExists.
Policy parameters Parameters provide flexibility and reduce redundancy in policy definitions. They allow you to reuse the same definition in different scenarios, like fields in a form to be filled out (e.g., name, city, date of birth, address, etc.). The structure remains the same, but the values can vary.
Policy assignments Assignments represent the application of a policy or an initiative to a specific scope (for example, a subscription or a management group).

Steps to implement a policy in Azure

Now let's take a look at the steps for creating and implementing a new policy.

  • Create the Policy definition: The first step in managing policies in Azure is to create a policy definition. This definition establishes rules and conditions that resources must comply with in order to comply. This can be a customized policy, created based on the specific needs of the organization, or one of the predefined definitions offered by Microsoft, which cover common scenarios such as security management, cost control, and regulatory compliance. Once created, the policy defines the evaluation criteria and the actions to be taken if the resources do not comply.
  • Create a definition of Initiative: As we mentioned earlier, an initiative in Azure Policy is a set of multiple policies grouped together with the objective of addressing wider governance needs. Instead of applying individual policies one by one, initiatives allow them to be consolidated and managed more efficiently. For example, an initiative might contain policies related to security, compliance with business policies, or management of the cloud environment. As with policies, initiatives can also be customized or based on Microsoft's predefined ones.
  • Define the scope of the Initiative: After creating an initiative, it is necessary to define its scope, that is, determine where it will be applied. The scope can be a management group (which affects multiple subscriptions), a specific subscription (which covers all the resources within it), or a group of resources (which applies policies only to a defined set of resources). The choice of scope is critical to ensure effective policy enforcement and adequate control over resource compliance.
  • Determine compliance: Once the desired policies and initiatives have been implemented, it is essential to monitor and evaluate the compliance status of the resources. Azure Policy provides tools to analyze whether resources meet defined criteria and to identify any violations. This process helps maintain an environment that complies with business and industry regulations, reducing the risk of misconfigurations or security vulnerabilities. If non-compliances are detected, corrective actions can be taken, such as automatically modifying configurations or applying restrictions.
Diagram related to creating a policy in Azure

Azure Policy: benefits for IT professionals

For IT professionals who manage cloud resources, governance often seems like a balance between speed and control.

Misconfigurations, manual processes, and resource deviations can quickly compromise operations, exposing organizations to security, compliance, and cost issues. Azure Policy directly addresses these challenges by automating governance and ensuring that resources are always aligned with business and technical requirements.

By integrating Azure Policy into their governance strategy, IT professionals get a reliable tool to prevent misconfigurations, simplify compliance reporting, and ensure operational excellence. Whether it's managing few resources or a complex hybrid infrastructure, Azure Policy makes governance both practical and scalable.

With Azure Policy, you can move from a reactive approach to proactive control, allowing automation to enforce standards and freeing up time for innovation.

Here's why IT workers should consider it:

  • Enforcing rules and compliance: Azure Policy allows you to enforce compliance rules and requirements on resources in Azure. Policies can be evaluated in real time, making it possible to test them before applying them. In addition, you can change policies periodically or on request, providing greater flexibility in governance and compliance.
  • Large-scale policy enforcement: Policies can be applied to a management group, acting as an “umbrella” for all of the organization's subscriptions and resources. You can assign multiple policies, aggregate compliance states with policy initiatives, and define an exclusion scope, if necessary.
  • Performing remediation: Azure Policy can be used to automatically correct resources, both those just created and those existing in the management group. If a resource does not comply with the policies, the service marks them as such and the admins who use Azure Policy can intervene to restore compliance with manual or scheduled remediation activities.
  • Fluid and comprehensive exercise of governance: Azure Policy allows you to implement governance activities in the cloud environment. This includes assigning policies to multiple engineering teams and managing multiple subscriptions. In addition, it helps to standardize and apply cloud resource configuration across the organization, ensuring compliance, cost control, security, and design consistency across management groups.
Azure policy compliance analysis

Azure Policy: tips for implementing policies

Now that we know how the service works and what it can do for us, the time has come to understand how to make the most of the Azure Policy features.

In fact, its ease of use should not be misleading.

If it is true that learning the basics is extremely easy, it is equally true that without the implementation of appropriate practices, the situation can easily degenerate into complicated or unmanageable scenarios that, in addition to wasting precious time, also risk jeopardizing our security posture.

Let's look at some examples to understand how to best use Azure Policy.

  • Start with the Audit and AuditIfNotExists functionality: The first step in implementing policies should be the use of Audit or AudiTifNotExists instead of directly imposing restrictions. This approach allows us to monitor and understand the impact of the changes we want to make without affecting existing resources. It is a useful method for testing and evaluating the effectiveness of policies before applying more restrictive measures, ensuring that there are no interruptions in business processes.
  • Consider organizational hierarchies: For effective governance, policies must be aligned with the company's organizational structure. This means classifying and organizing groups based on roles, teams, or departments and applying specific policies to these structures. A well-defined organization allows you to assign policies in a targeted manner, ensuring that each team or business function operates in compliance with the rules without hindering productivity.
  • Use parameters: As discussed earlier, the use of parameters in policies provides greater flexibility and reduces the need to create separate definitions for similar scenarios. The parameters allow a policy to be adapted to different contexts without changing its structure, thus reducing the manual workload for the management team and improving the efficiency of policy administration.
  • Create and assign Initiative definitions: Using initiatives allows you to group multiple related policies within a single structure for easier and more consistent management. This approach helps implement governance strategies on a large scale, ensuring that all the policies necessary for a given objective are applied in a unified and coordinated manner.
  • Regularly review policies: Business needs, projects, priorities, and compliance regulations are constantly evolving. For this reason, it is essential to periodically review policies to ensure their relevance and effectiveness. A regular review process allows policies to be updated to adapt to organizational changes, avoid obsolescence and ensure that resources always remain in compliance with the most recent regulations.

Conclusions

It was natural that the evolution of digital infrastructures to the cloud would lead to changes in the way in which an organization must secure its assets and ensure that they are not eyed by unauthorized personnel or malicious agents.

But this change doesn't have to mean greater complexity, and Azure Policy is an essential tool for IT professionals who want to simplify governance, reduce risks, and ensure consistent compliance in cloud and hybrid environments.

Combining proactive application, automated correction, and continuous monitoring, Azure Policy transforms governance into a fluid, automated process.

With support for native Azure resources, on-premise workloads, and multi-cloud implementations through Azure Arc, Azure Policy offers a unified framework for managing the entire IT landscape. Whether it's applying security baselines, managing resource costs, or meeting compliance requirements, the service provides the visibility and control needed to operate securely at scale.

With Azure Policy, IT professionals can stop chasing misconfigurations and focus on what matters most: creating secure, efficient, and compliant cloud solutions that help their business succeed, and nothing more.

FAQ on Azure Policy

What is Azure Policy?

Azure Policy is a service included in the Microsoft Azure platform that allows you to define, assign and manage policies to ensure that resources comply with security requirements, business standards and regulations. Unlike systems that simply control user permissions, Azure Policy focuses directly on the state and configuration of resources, ensuring that they are always in line with business expectations and rules.

What's the difference between Azure Policy and RBAC?

The main difference is that RBAC determines who can perform certain actions on a resource, such as creating or modifying a storage account, while Azure Policy is responsible for verifying that that resource is properly configured according to business policies, such as ensuring that the storage account is encrypted or labeled. In summary, RBAC manages user permissions, while Azure Policy governs the state of resources.

How does Azure Policy work?

Every time a resource is created or modified, Azure Policy evaluates the request through the Azure Resource Manager engine. If the defined policies are violated, the system can block the action, report it or intervene with an automatic correction. In addition to this immediate verification, Azure Policy performs periodic evaluations to check that existing resources also comply with the rules, allowing continuous and in-depth control of the Azure environment.

Where can Azure Policies be applied?

Policies can be applied at various hierarchical levels. You can use them on Management Groups to define rules valid on multiple subscriptions, on individual subscriptions to influence all the resources contained, on Resource Groups to act on specific sets of resources or even on individual resources, to obtain more granular control. This flexibility makes it possible to adapt the application of policies to every governance need, from the business level to the individual project.

What are the main components of an Azure Policy?

A policy consists of a definition, which specifies what to evaluate and what to do if the rule is violated, an effect, which represents the actual action to be taken (such as denying the creation or reporting an anomaly), of any parameters, which make the policy more flexible and reusable in different contexts, and finally of an assignment, which indicates the scope to which the policy applies. As an alternative to individual policies, it is possible to use initiatives, i.e. collections of policies with a common compliance objective.

What is an Azure Policy initiative?

An initiative is a set of policies grouped together to address larger governance objectives in a coordinated manner. It allows multiple rules to be applied simultaneously on the same scope, for example all the policies necessary to ensure the security of a cloud environment. This approach simplifies management and allows for greater consistency over time.

Can I automatically correct non-compliant resources?

Yes, Azure Policy not only allows you to detect non-compliances, but also to take action to correct them. Remediation actions can be automated or scheduled and allow, for example, to apply missing configurations or restore correct settings. In this way, policies don't just report problems, they also help to proactively resolve them.

What are the benefits of Azure Policy for IT professionals?

For IT professionals, Azure Policy represents a fundamental ally in managing cloud governance. It allows you to prevent misconfigurations, automate compliance checks, reduce the risk of security breaches or wasted resources, and simplifies the reporting necessary for continuous monitoring. All of this is done while maintaining the operational speed required by modern cloud environments, without compromising security or efficiency.

Are there default policies in Azure?

Yes, Azure provides a large collection of pre-defined, ready-to-use policies that cover common scenarios such as data protection, cost management, and compliance. It is also possible to define custom policies in JSON format to meet more specific needs. In addition, predefined policies can be combined into initiatives for more structured management.

How to effectively implement Azure Policies?

To make the most of Azure Policy, it is recommended to start with audit effects to understand the impact of the policies without immediately imposing restrictions. It is important to clearly define the organizational hierarchy to assign policies to the correct areas, take advantage of parameters to make them more flexible, and use initiatives to manage multiple policies in a unified way. Finally, it is essential to regularly review policies to keep them updated with respect to business and regulatory changes.

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