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D1 · Identity, Governance & Monitoring

Authentication and Authorization

The AZ-305 architect designs the access control layer: Conditional Access policies as the central engine, phishing-resistant MFA, just-in-time privileged access with PIM, and continuous governance with access reviews. The exam question is always: which combination of controls meets the requirements with the least friction and cost?

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Conditional Access as the design engine

is Entra ID's Zero Trust policy engine: it evaluates signals (user, location, device, app, risk) and applies controls (block, require MFA, require a compliant device). It requires an Entra ID P1 license; risk-based policies require P2.

Signals (IF)

  • •User / group / directory role
  • •Target cloud app
  • •Location (named locations, IPs)
  • •Device platform and state
  • •User and sign-in risk (P2)
  • •Client type (legacy auth)

Access controls (THEN)

  • •Block access
  • •Require MFA
  • •Require authentication strength (phishing-resistant)
  • •Require compliant device (Intune)
  • •Require hybrid-joined device
  • •Require password change (risk)

Session controls

  • •App enforced restrictions
  • •Defender for Cloud Apps (proxy)
  • •Sign-in frequency (periodic re-auth)
  • •Persistent browser session
  • •Continuous Access Evaluation (CAE)

Design best practices (they show up on the exam)

  • • Block legacy authentication — legacy protocols (POP, IMAP, basic SMTP) don't support MFA; they're the #1 vector for password spray
  • • Always exclude break-glass accounts (emergency accounts) from every CA policy
  • • Use Report-only mode before enforcing a new policy to measure impact
  • • Target policies at groups, never individual users
  • • CA doesn't apply to flows without Entra ID interaction (local VM accounts, storage account keys) — those need other controls

MFA and passwordless method design

MethodPhishing-resistantDesign notes
FIDO2 / PasskeysYesGold standard. Hardware keys or on-device passkeys. For privileged roles and regulated environments.
Windows Hello for BusinessYesDevice-bound biometrics/PIN. Passwordless for a managed-Windows workforce.
Certificate-based auth (CBA)YesSmartcards/certificates — government organizations or those migrating from ADFS.
Microsoft Authenticator (push + number matching)PartialGood usability/security balance for most users. Number matching mitigates MFA fatigue.
SMS / voice callNoVulnerable to SIM swapping. Fallback only; remove for privileged accounts.

Authentication Strengths

Instead of requiring "generic MFA", a CA policy can require a specific authentication strength — e.g. "phishing-resistant MFA" (FIDO2, WHfB, CBA only) for global administrators. If the scenario asks for "phishing-resistant MFA for privileged roles", the answer is CA + authentication strength, not per-user MFA.

PIM — just-in-time privileged access

Privileged Identity Management (PIM) eliminates standing privileges: users are made eligible for a role and activate it only when needed, for a limited time, with justification, MFA and optional approval. Requires P2.

What PIM covers

  • • Entra ID roles (Global Admin, User Admin...)
  • • roles (Owner, Contributor on subscriptions/RGs)
  • • Groups (PIM for Groups — JIT membership)
  • • Eligible vs active assignments, with an expiration date

Per-role configuration

  • • Maximum activation duration (e.g. 4 hours)
  • • Require MFA / authentication context on activation
  • • Require justification and/or ticket number
  • • Require approval from a designated approver
  • • Usage notifications and alerts
  • • Periodic access reviews of the assignments

Exam signal

Phrases like "just-in-time", "only when needed", "reduce standing privileges", "approval before elevating" → PIM. If it also asks to periodically review who still holds access → PIM + Access Reviews.

Identity Protection — risk as a signal

Sign-in risk

Does this specific login look legitimate?

  • •Impossible travel
  • •Anonymous IP / TOR
  • •Unfamiliar sign-in properties
  • •Typical response: require MFA on medium/high risk

User risk

Is this identity compromised?

  • •Leaked credentials (requires PHS)
  • •Accumulated anomalous activity
  • •Microsoft threat intelligence
  • •Typical response: require a secure password change on high risk

Recommended design: instead of legacy Identity Protection policies, create risk-based Conditional Access policies (user/sign-in risk signal as a condition). Requires P2. Leaked credential detection only works with Password Hash Sync enabled.

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Access Reviews and Entitlement Management

Access Reviews

Periodic reviews (e.g. quarterly) of who still holds access to groups, apps, Entra roles and PIM assignments. The reviewer (manager, resource owner or the user themselves) approves or revokes. It can auto-remove anyone who doesn't respond.

Exam signal: "periodically review B2B guest access" → Access Reviews.

Entitlement Management

Access packages: bundles of resources (groups + apps + SharePoint sites) that users request through an approval workflow, with automatic expiration and integrated reviews. Ideal for project onboarding and governed B2B collaboration.

Signal: "users should be able to request access with approval and expiration" → access packages.

Decision table

RequirementSolutionLicense
Require MFA only from outside the corporate networkConditional Access + named locationsP1
Block basic POP/IMAP/SMTPCA — block legacy authenticationP1
Phishing-resistant MFA for Global AdminsCA + authentication strength (FIDO2/WHfB/CBA)P1
Require MFA when the sign-in is riskyCA based on sign-in riskP2
Force a secure reset if credentials are leakedCA based on user risk (+ PHS)P2
Admin roles activated only when neededPIM (eligible + JIT activation)P2
Quarterly review of guest accessAccess ReviewsP2
Self-service access request with approval and expirationEntitlement Management (access packages)P2

Did you get this topic?

Test what you just learned

A company requires its global administrators to: (1) not have the role assigned permanently, (2) require approval from a responsible party before using it, and (3) use phishing-resistant MFA when activating it. Which combination of services do you design?

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