Azure Policy for governance - Step-by-Step Execution

Process Flow - Azure Policy for governance

Define Policy Definition

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Assign Policy to Scope

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Evaluate Resources

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Enforce or Audit Compliance

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Report Compliance Results

Azure Policy starts with defining rules, then assigning them to resources, evaluating compliance, enforcing rules, and reporting results.

Execution Sample

Azure

az policy definition create --name 'allowed-locations' --rules @rules.json --mode All
az policy assignment create --name 'assign-allowed-locations' --policy 'allowed-locations' --scope '/subscriptions/12345'

This code creates a policy definition to restrict locations and assigns it to a subscription scope.

Process Table

Step	Action	Input	Evaluation	Result
1	Create Policy Definition	Rules JSON with allowed locations	Validates JSON syntax and rules	Policy definition created
2	Assign Policy	Policy name and scope	Checks scope validity	Policy assigned to subscription
3	Evaluate Resources	Existing resources in scope	Checks if resource locations are allowed	Non-compliant resources identified
4	Enforce or Audit	Policy effect (Deny/Audit)	Applies effect on resource creation/update	Creation denied or audit logged
5	Report Compliance	Compliance data collected	Aggregates compliance state	Compliance report generated
6	End	No further actions	N/A	Policy enforcement cycle complete

💡 Policy enforcement cycle completes after compliance reporting.

Status Tracker

Variable	Start	After Step 1	After Step 2	After Step 3	After Step 4	Final
Policy Definition	None	Created with rules	Assigned to scope	Used for evaluation	Effect applied	Stored for reporting
Scope	None	None	Subscription ID	Resources evaluated	Enforcement applied	Compliance reported
Compliance State	Unknown	Unknown	Unknown	Non-compliant resources found	Enforcement effect recorded	Final compliance status

Key Moments - 3 Insights

Why does the policy need to be assigned after creation?

Creating a policy only defines rules; assigning it to a scope activates it for resources in that scope, as shown in steps 1 and 2 of the execution_table.

What happens if a resource does not comply with the policy?

Step 4 shows that depending on the policy effect, the resource creation can be denied or just logged for audit, enforcing governance.

How is compliance reported?

Step 5 collects and aggregates compliance data from evaluated resources to generate a report, helping track governance status.

Visual Quiz - 3 Questions

Look at the execution_table, what is the result after Step 3 'Evaluate Resources'?

A Policy assigned to subscription

B Non-compliant resources identified

C Compliance report generated

D Policy definition created

💡 Hint

Check the 'Result' column for Step 3 in the execution_table.

At which step is the policy effect applied to resource creation or update?

A Step 2

B Step 3

C Step 4

D Step 5

💡 Hint

Look for 'Effect applied' or 'Enforcement applied' in the execution_table.

If the policy is not assigned to any scope, what will happen during evaluation?

A No resources will be evaluated

B Resources will be evaluated normally

C Policy definition will be deleted

D Compliance report will be generated anyway

💡 Hint

Refer to Step 2 and Step 3 in the execution_table about assignment and evaluation.

Concept Snapshot

Azure Policy governs resources by defining rules (policy definitions).
Policies must be assigned to a scope (subscription, resource group).
Azure evaluates resources against policies and enforces effects (deny, audit).
Compliance reports show which resources follow or break policies.
This helps keep cloud resources secure and compliant.

Full Transcript

Azure Policy for governance involves creating a policy definition with rules, assigning it to a scope such as a subscription, evaluating resources in that scope for compliance, enforcing the policy effects like denying non-compliant resource creation or auditing, and finally reporting compliance results. This cycle ensures cloud resources follow organizational rules and standards.