Lab 03 – Management Groups (RBAC) & Azure Policy

⏱️ Total Estimated Time: 30 minutes

Objectives

Prerequisites

Estimated Time

45 minutes total

Part 1 – Create a Resource Group for This Lab

⏱️ 5 minutes
✓

Step 1: Create resource group

  1. Search for Resource groups > Create
  2. Subscription: your subscription. Resource group: rg-az104-lab02
  3. Region: East US
  4. Select Review + create > Create
ℹ️

Tip

Resource groups are free containers. Always organize resources into RGs by project, environment, or cost center.

Part 1 Validation

Part 2 – Assign Built-in Roles

⏱️ 10 minutes

Understanding RBAC Scopes

❗

Important

RBAC assignments inherit down the hierarchy: Subscription → Resource Group → Resource. An assignment at the RG level applies to all resources within it.

✓

Step 1: Assign Reader role at Resource Group scope

  1. Go to rg-az104-lab02 > Access control (IAM) > Add > Add role assignment
  2. Role tab: select Reader. Select Next
  3. Members tab: Assign access to User, group, or service principal
  4. Select members > choose grp-az104-lab (from Lab 01)
  5. Review + assign
✓

Step 2: Assign Storage role at Resource scope

⚠️

Warning

Resource-level assignments are more restrictive. Bob here can only access this one storage account, not others in the RG.

  1. Create a storage account (or use one from Lab 04)
  2. Open the storage account > Access control (IAM) > Add role assignment
  3. Role = Storage Blob Data Contributor > assign to Bob
  4. This grants Bob access only at this storage account scope, not the whole RG

Part 2 Validation

Part 3 – Create a Custom Role

⏱️ 8 minutes

Why Custom Roles?

ℹ️

Tip

Built-in roles like "Virtual Machine Contributor" are too broad. Custom roles let you grant minimal permissions—only what's needed.

✓

Step 1: Start custom role

  1. Go to the subscription > Access control (IAM) > Add > Add custom role
  2. Basics tab:
    • Custom role name: VM Operator (Start/Stop only)
    • Description: Can start and restart VMs but not create or delete them
    • Baseline permissions: Clone a role > select Virtual Machine Contributor
✓

Step 2: Edit permissions

  1. Permissions tab: select Edit permissions in JSON
  2. Replace the actions/notActions arrays with:
{
  "actions": [
    "Microsoft.Compute/virtualMachines/start/action",
    "Microsoft.Compute/virtualMachines/restart/action",
    "Microsoft.Compute/virtualMachines/read"
  ],
  "notActions": []
}
  1. Assignable scopes tab: confirm scope is your subscription
✓

Step 3: Assign custom role

  1. Access control (IAM) > Add role assignment
  2. Search for VM Operator (Start/Stop only) under Custom roles
  3. Assign to carol@<yourtenant>.onmicrosoft.com at rg-az104-lab02 scope

Part 3 Validation

Part 4 – Azure Policy: Enforce Required Tags

⏱️ 8 minutes

Understanding Policy

❗

Important

Policies PREVENT creation/modification of resources that don't comply. Unlike RBAC (who can do what), Policy enforces what is allowed to be created.

✓

Step 1: Find and assign policy

  1. Search for Policy > Definitions
  2. Search for "Require a tag on resource groups"
  3. Select it > Assign
  4. Basics tab: Scope = your subscription
  5. Parameters tab: set Tag Name = CostCenter
  6. Effect: confirm it's Deny (blocks creation without tag)
  7. Review + create > Create
✓

Step 2: Test the policy

⚠️

Warning

This will block resource creation. Expect a policy error.

  1. Go to Resource groups > Create
  2. Name: rg-policy-test, Region: East US
  3. Select Review + create and expect this error:
RequestDisallowedByPolicy
The request is denied by an Azure policy.
Reason: Resource group does not have required tags.
  1. Do not proceed past this validation error
  2. This proves the policy is working!

Part 4 Validation

Part 5 – Azure Policy: Enforce Allowed Locations

⏱️ 8 minutes
✓

Step 1: Create policy definition

  1. Go to Policy > Definitions > + Policy Definition
  2. Name: Allowed Azure Locations
  3. Category: General
  4. Description: Restrict resource creation to approved regions only
  5. Policy rule (replace template with):
{
  "policyRule": {
    "if": {
      "not": {
        "field": "location",
        "in": [
          "East US",
          "West US",
          "West Europe"
        ]
      }
    },
    "then": {
      "effect": "Deny"
    }
  }
}
  1. Review + create > Create
✓

Step 2: Assign the policy

  1. Policy > Assignments > Assign Policy
  2. Scope: your subscription
  3. Policy definition: select Allowed Azure Locations
  4. Effect: Deny
  5. Review + create > Assign
✓

Step 3: Test the policy

  1. Try to create a resource in Central US (not in the allowed list)
  2. Expect a Deny error
  3. Try creating in East US (in the allowed list)
  4. Should succeed

Part 5 Validation

Success Criteria

Lab Completion Checklist

  • Resource group rg-az104-lab02 created
  • Reader role assigned to group at RG scope
  • Storage Blob Data Contributor assigned to Bob at resource scope
  • Custom role VM Operator (Start/Stop only) created and assigned
  • Tag policy prevents resource group creation without CostCenter tag
  • Location policy allows only East US, West US, West Europe

Cleanup (If Needed)

To remove policies and role assignments:

# Remove policy assignments
Remove-AzPolicyAssignment -Name "Require a tag on resource groups" -Scope "/subscriptions/[subscription-id]"
Remove-AzPolicyAssignment -Name "Allowed Azure Locations" -Scope "/subscriptions/[subscription-id]"

# Remove custom role
Remove-AzRoleDefinition -Id "[role-id]" -Force

# Remove resource group (includes all resources inside)
Remove-AzResourceGroup -Name "rg-az104-lab02" -Force
ℹ️

Tip

Keeping test RGs around helps you learn. Only delete if you're confident you won't need them.

Key Takeaways