Mastering Azure Identity & RBAC Setup

This marks the beginning of my preparation journey for the Microsoft Azure Administrator (AZ-104) certification exam. I strongly believe, as do many professionals, that an exam alone is not the true measure of one’s understanding or capability.

Therefore, I have decided to undertake 10 practical hands-on projects that comprehensively cover the core domains of the AZ-104 exam, which include:

Managing Azure Identities and Governance

Implementing and Managing Storage

Deploying and Managing Azure Compute Resources

Configuring and Managing Virtual Networking

Monitoring and Maintaining Azure Resources

Implementing Backup and Recovery Solutions

Configuring Load Balancing and High Availability

Managing Azure App Services and Security

Implementing Azure Policies and Governance Blueprints

Configuring Hybrid Networking and VPN Connections

I begin this journey with Project 1: Understanding Azure Identity and RBAC Setup, which focuses on user and group management, role assignments, and access control best practices within Azure.

Objective

In this project, We’ll learn how to:

  • How to create users and groups in Microsoft Entra ID (formerly Azure AD).
  • How to assign RBAC roles to control access to Azure resources.
  • How to configure Conditional Access to enforce security policies.

Prerequisites

  • An Azure subscription.
  • Access to the Azure Portal.
  • Optionally, Azure CLI is installed.

If you’re new to Entra ID, note that when you create an Azure account, Microsoft automatically gives you a default directory called Microsoft Entra ID. This directory is where all your users, groups, and permissions are managed. Think of it as the control center that decides who can sign in and what they can access in Azure. You can find and manage it directly from the Microsoft Entra ID section in the Azure Portal.
So, even if you’re new, you already have one directory set up and ready to use for identity management.

Architecture Analogy

To make this easy:

  • User1 → a kid who can only watch others play.
  • User2 → a kid who can play, but only after washing hands (MFA).
  • Group → a classroom.
  • Role → the rules about which toys (resources) can be touched.

Step-by-Step Implementation

Step 1: Create Users

Go to Azure Portal → Microsoft Entra ID → Users → + New User.

Create:

  • testuser1
  • testuser2
  • testuser3

You can leave other tabs blank and complete the creation of the user for the other two users.

CLI alternative:

az ad user create \
— display-name “Test User 1” \
— user-principal-name testuser1@<yourdomain>.onmicrosoft.com \
— password “StrongP@ssw0rd!”

Step 2: Create a Group

Go to Groups → + New Group.

Choose:

  • Group type: Security
  • Name: DevOps-Team
  • Membership type: Assigned

Add testuser1 and testuser2.

Step 3: Assign RBAC Roles

Navigate to Subscriptions → Access Control (IAM) → + Add Role Assignment.

Assign:

  • Reader → testuser1
  • Contributor → testuser2
  • Billing Reader → DevOps-Team
  • Custom Role for testuser3 (storage read-only)

Step 4: Configure Conditional Access

Go to Microsoft Entra ID → Security → Conditional Access → + New Policy.

  • Name: MFA for Admins
  • Assign to testuser2 and select All cloud apps.
  • Under Access controls, choose Grant → Require multi-factor authentication.

Enable the policy.

Step 5: Validation Summary

Each test user and group behaves according to their assigned roles:

  • testuser1 — Read-only access.
  • testuser2 — Can create resources; MFA enforced.
  • testuser3 — Limited to Storage resources only.
  • DevOps-Team — Can view billing information.

Testing:
Log in as each user (preferably in an incognito window) and try basic tasks like creating a VM or accessing Storage Accounts. Verify MFA for testuser2.

Expected Result:
RBAC roles and Conditional Access policies work correctly, enforcing least-privilege access and security best practices.

Conclusion

4 responses to “Mastering Azure Identity & RBAC Setup”

  1. Yves Avatar
    Yves

    Thanks for this article. Its also good practice to have at least have two group owners in case one owner is oOF and that the group membership can have a review once a year at least.

    1. williamtijesuni Avatar
      williamtijesuni

      Thank you for pointing that out

  2. Benjamin OGUNSADE Avatar
    Benjamin OGUNSADE

    So well documented, keep it up brother.

    1. williamtijesuni Avatar
      williamtijesuni

      Thanks a lot

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I’m Adedeji

I am a Microsoft MVP. Welcome to my blog. On this blog, I will be sharing my knowledge, experience and career journey. I hope you enjoy.

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