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What is Azure Policy?

What is Azure Policy?

Azure Policy is a powerful tool in the Microsoft Azure ecosystem designed to enforce and audit organizational standards and compliance. In this blog, we’ll look into its key features and guide you through the process of getting started with Azure Policy.

Table of Contents:

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Overview of Azure Policy 

In the dynamic world of cloud computing, ensuring consistency, security, and compliance across your Azure resources is crucial. This is where Azure policy comes into play. Azure Policy is a cloud governance solution that empowers you to implement organizational standards and policies across your Azure resources. It acts as a policy engine that evaluates the state of your resources against predefined rules and takes corrective action as needed.

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Types of Azure Policy 

Types of Azure Policy 

Azure Policy offers a diverse range of policy types that respond to various governance and regulatory requirements. Each policy type serves a specific purpose and provides a unique set of capabilities for managing and enforcing cloud resource configurations. Here are the types of policies:

  • Built-In Policies: ​​Azure provides a collection of pre-built policies that address common security, compliance, and cost optimization scenarios. These policies are categorized into various domains, such as tags, legal compliance, Key Vault, Kubernetes, Guest Configuration, and more. Built-in policies offer a convenient starting point for implementing essential governance practices.
    • For instance, the “Allowed Resource Type” policy restricts resource deployment to a predefined list of approved types, ensuring that only authorized resources are provisioned within your Azure environment.
  • Custom Policies: Custom policies empower you to define rules that resonate specifically with your business objectives. Whether it’s implementing specific naming conventions, requiring certain tag values, or restricting particular resource configurations, custom policies put you in control, allowing your Azure environment to reflect the individual needs of your organization.
    • For example, a custom policy could mandate that all virtual machines in a specific region must have a certain security tag applied, ensuring compliance with organizational standards.
  • Static Policies: Static policies serve as the firm backbone of your governance strategy. These policies are set and enforced without exception, providing a stable and consistent framework for your Azure resources. They are the steadfast guardians that ensure your environment conforms to predetermined standards, offering a reliable structure for maintaining compliance and security.
    • For instance, a static policy could prohibit the creation of storage accounts with a specific type, ensuring that only compliant storage solutions are utilized within the Azure environment.
  • Audit Policies: In the world of Azure Policy, audit policies act as the watchful eyes that observe and report without making direct changes. These policies allow you to track compliance by identifying resources that deviate from the defined rules. Like an audit trail, they provide valuable insights into how well your Azure environment meets your governance standards, helping you make informed decisions to enhance security and compliance.
    • For example, an audit policy could track the usage of specific Azure resources, identifying any potential misuse or deviations from approved configurations.
  • Deny Policies: Deny policies are the gatekeepers that firmly say “no” to configurations that violate your governance rules. When applied, these policies prevent the deployment of resources that don’t meet the specified criteria. They act as the last line of defense, ensuring that only compliant resources are added to your Azure environment. Deny policies play a crucial role in enforcing strict adherence to your organization’s standards and promoting a secure and controlled cloud ecosystem.
    • For instance, a deny policy could prohibit the creation of virtual machines with a certain operating system, preventing the introduction of unauthorized software or potential security vulnerabilities into the Azure environment.

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Why Policy Variety Matters

The diversity of Azure policy types offers an interesting approach to governance. Built-in policies provide quick wins, custom policies offer specific precision, static policies establish a firm foundation, audit policies enable attentive monitoring, and deny policies act as the ultimate guardians. This variety ensures that you have the right tools to craft a governance strategy that suits the unique needs of your organization.

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Key Features of Azure Policy 

Azure Policy, designed with simplicity and effectiveness in mind, comes packed with features to ensure your Azure environment aligns effortlessly with your organizational guidelines and compliance standards.

  • Policy Definitions: Azure Policy allows you to set your own rules through custom policy definitions. Think of it as establishing the do’s and don’ts for your Azure resources. This flexibility ensures your policies match the specific requirements of your organization.
  • Built-in and Custom Initiatives: Choose from a variety of pre-made policy initiatives or create your own. Initiatives are like bundled sets of rules addressing specific scenarios. 
  • Assigning Policies: Once your policies are defined, you can assign them to different areas in your Azure environment, like subscriptions or resource groups.
  • Policy Enforcement: Azure Policy acts like an alert supervisor, automatically checking your resources against assigned policies. This proactive enforcement minimizes the chances of policy violations, keeping your environment in line with the established rules.
  • Remediation Actions: For non-compliant resources, Azure Policy offers remediation actions. It’s like having an automated problem-solver that corrects issues, ensuring continuous compliance.
  • Policy Insights: Azure Policy provides valuable insights through reporting and monitoring. It’s like having a dashboard view of your compliance status, helping you identify and address issues.
  • Integration with Azure DevOps: Azure Policy smoothly integrates with Azure DevOps, allowing you to incorporate policy evaluations into your development pipelines. This integration ensures that policies are checked early in the development cycle, preventing compliance issues from progressing to production.

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Getting Started with Azure Policy 

Getting started with Azure Policy requires using the Azure Portal, your command center for cloud governance. Policy definitions serve as the foundational rules, dictating how your Azure environment matches organizational criteria. Explore built-in policies for instant compliance solutions or customize them to fit unique requirements. Assigning policies is similar to plotting a course and specifying what’s permitted in your Azure space. 

Choose where policies apply, whether it’s entire subscriptions, specific resource groups, or individual resources. Monitoring compliance becomes effortless with policy reports, offering insights into how well Azure resources follow established rules. Azure Policy’s flexibility allows ongoing refinement, adapting to organizational changes like updating a navigational map. 

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Azure Policy and Azure RBAC 

Now that we’ve looked into the world of Azure Policy, let’s examine its seamless integration with Azure RBAC, a powerful duo for ensuring cloud security and compliance.

AspectAzure PolicyAzure RBAC
PurposeEnforce organizational standards, security best practices, and regulatory requirements across Azure resourcesGrants permissions to users, groups, or service principals to perform specific actions on Azure resources
AnalogyChief inspector checking adherence to rules in the environmentA bouncer at a club decides who gets in and their permitted actions
Practical ApplicationDefine policies aligned with organizational standards; Use RBAC to assign rolesKeeps Azure secure, compliant, and optimized for search engine visibility
Continual OptimizationRegularly refines policies and roles to adapt to changing organizational needsEnsures governance practices remain effective and adaptable
ScopeIndividual resources, resource groups, subscriptions, and management groupsIndividual resources, resource groups, subscriptions, and management groups


Azure Policy stands as the foundation of cloud governance, allowing organizations to establish and enforce organizational standards, security best practices, and compliance requirements across their Azure resources. By utilizing its broad policy definitions, fine scope assignments, and strong monitoring capabilities, Azure Policy ensures that your Azure infrastructure conforms to the defined rules, promoting a secure, compliant, and consistently managed cloud environment.

Remember that it is an evolving tool, continuously enhanced with new features and capabilities. Stay updated on the latest developments to maximize its effectiveness in governing your cloud environment and safeguarding your valuable data. Accept Azure Policy as a proactive partner in your cloud governance strategy, ensuring that your Azure resources remain aligned with your organizational goals, industry standards, and regulatory requirements.

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About the Author

Application Architect

Rupinder is a certified IT expert in AWS and Azure, working as a DevOps Architect and specializing in cloud and infrastructure. He designs and builds entire IT setups for important apps in banking, insurance, and finance.