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Azure AD Fundamentals

Azure AD for Identity Governance: A Comprehensive Guide


Azure Active Directory (Azure AD) is a cloud-based identity and access management solution provided by Microsoft. It offers robust features for identity governance, allowing organizations to effectively manage user roles and permissions within their Azure AD tenant. In this article, we will elaborate on the process of creating an Azure AD tenant, configuring Azure AD for identity governance, understanding the impact of enabling identity governance features, and managing Azure AD roles and permissions.

Let’s dive deeper into each section.

Creating an Azure AD Tenant: 

An Azure AD tenant serves as a dedicated instance of Azure AD for an organization. It is essential to set up an Azure AD tenant before utilizing its identity governance features.

Creating an Azure AD tenant involves a few straightforward steps:

Step 1: Sign in to the Azure portal ( using your Azure account credentials.
Step 2: In the left-hand menu, click on “Azure Active Directory” to navigate to the Azure AD management portal.
Step 3: Click on “Create a tenant” and follow the on-screen instructions to provide the necessary information, such as organization details and domain name.
Step 4: Once the tenant is created, you can access it from the Azure portal and start configuring it for identity governance.

 Best practices for naming conventions and directory structure: 

Choosing the right name for your Azure AD tenant is crucial. It should be clear, descriptive, and aligned with your organization’s identity. Additionally, following naming conventions helps maintain consistency and clarity across multiple tenants in large organizations. Consider the following best practices:

  • Use a name that reflects your organization’s identity, such as “Contoso Corporation Azure AD.”
  • Avoid using ambiguous or generic names that might cause confusion later on.
  • Consistently follow naming conventions to ensure uniformity across all tenants and resources.
  • Plan and organize your directory structure logically to make management more efficient. Consider using organizational units (OU) or groups to categorize users and resources based on their roles and responsibilities.

Configuring Azure AD for Identity Governance: 

Azure AD provides several features for identity governance that can significantly enhance your organization’s security and access management practices. Let’s delve into each of these features:

 Overview of Azure AD Identity Governance features: 

a. Entitlement Management:
Entitlement management allows you to define and manage access privileges for users and groups within your organization. By creating access packages and policy sets, you can control who can access specific resources and under what conditions.

 b. Access Reviews: 
Access reviews enable periodic review and recertification of user access to resources. Conducting access reviews helps ensure that users only have access to the resources they genuinely need and that access is revoked when no longer required.

 c. Privileged Identity Management (PIM): 
Privileged Identity Management helps manage and monitor privileged roles and permissions within your organization. By employing just-in-time (JIT) access, administrators can temporarily elevate their privileges to perform necessary tasks and revert to their regular roles once done, reducing the risk of prolonged privilege exposure.

 d. Azure AD Identity Protection: 
Identity Protection detects and mitigates potential identity-related risks, such as suspicious sign-ins or risky user behavior. It leverages machine learning algorithms to identify anomalies and take appropriate actions to secure user identities.

 Enabling Identity Governance features in Azure AD: 

Step 1: In the Azure AD portal, navigate to “Identity governance” in the left-hand menu.
Step 2: Select the desired feature (e.g., Entitlement management, Access reviews) and follow the on-screen instructions to enable and configure it according to your organization’s requirements.

Understanding the Impact of Enabling Identity Governance Features on Your Azure AD Tenant: 

 Understanding Azure AD Roles and Permissions: 
Azure AD uses roles and permissions to manage access to various resources. It is crucial to comprehend the different types of roles and their associated permissions within Azure AD.

 Overview of Azure AD roles and permissions: 

a. User Roles:
User roles define access privileges to Azure AD and its associated services. Examples include “User” and “Guest” roles, which typically have limited privileges and are assigned to regular users.

 b. Administrator Roles: 
Administrator roles grant administrative privileges to manage Azure AD and its resources. Examples include “Global Administrator” and “User Administrator” roles, which possess higher privileges for managing users, groups, and applications.

 c. Application Roles: 
Application roles define permissions specific to applications registered in Azure AD. They enable granular control over the actions and operations an application can perform.

Different types of roles (e.g., User, Administrator, Application) and their permissions:
Each role in Azure AD has its own set of permissions. While user roles focus on accessing Azure AD services, administrator roles provide control over the management aspects, and application roles govern the behavior of applications.

 Best practices for assigning roles and permissions in Azure AD: 

To ensure secure access management, consider the following best practices:

  • Principle of Least Privilege: Assign roles and permissions on a need-to-know basis. Only grant the minimum level of privileges required for users, groups, or applications to fulfill their responsibilities.
  • Regular Review and Updates: Periodically review and update role assignments to reflect changes in user responsibilities or organizational requirements.
  • Utilize Azure AD Privileged Identity Management (PIM): PIM provides a just-in-time (JIT) access model for privileged roles, reducing the risk of excessive and prolonged privileges.

Managing Azure AD Roles and Permissions:

 How to create custom roles in Azure AD: 

Azure AD allows the creation of custom roles tailored to your organization’s specific needs. Custom roles enable more granular control over permissions.

Here’s how to create a custom role:

Step 1: In the Azure AD portal, navigate to “Roles and administrators” in the left-hand menu.
Step 2: Click on “New custom role” and provide the required details, such as name, description, and permissions.
Step 3: Define the desired permissions by selecting the appropriate options from the available list.
Step 4: Save the custom role, and it will be available for assignment within your Azure AD tenant.

 How to assign roles and permissions to users, groups, and applications: 

Step 1: In the Azure AD portal, navigate to “Roles and administrators” in the left-hand menu.
Step 2: Select the desired role from the list.
Step 3: Click on “Add assignments” and specify the users, groups, or applications to which you want to assign the role.
Step 4: Save the assignments, and the selected entities will be granted the associated permissions.

 Best practices for managing role assignments in Azure AD: 

  • Regularly review and audit role assignments to ensure they align with the organization’s needs.
  • Utilize Azure AD access reviews to periodically review and recertify role assignments, ensuring they are still necessary and appropriate.
  • Implement role-based access control (RBAC) to enforce consistent and granular access controls, allowing for fine-grained access management.


Implementing effective identity governance in Azure AD is crucial for maintaining a secure and well-managed environment. By following the steps outlined in this article, including creating an Azure AD tenant, configuring identity governance features, understanding the impact of enabling these features, and efficiently managing roles and permissions, you can enhance the security posture of your organization. Embrace the best practices shared here to strengthen your organization’s identity governance framework and ensure proper access management within Azure AD.

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