Chapter 1 of 5 · Microsoft AZ-104

Manage Azure Identities and Governance

Entra users and groups, Azure RBAC, Azure Policy, locks, tags, subscriptions and costs.

  • 4topics
  • 20 minfast track
  • 1diagrams and exhibits
  • 20–25%of the exam

Topics in this chapter

Take them in order, or jump to the one you need.

  1. 1Microsoft Entra Users and GroupsAZ-104 Entra ID: create users and groups, dynamic membership, licenses, guest and external users, collaboration restrictions and…5 min
  2. 2Azure RBAC and Role AssignmentsAZ-104 Azure RBAC: built-in roles, scope and inheritance, role assignments, custom roles, Azure roles versus Entra roles and how…Diagram5 min
  3. 3Azure Policy, Locks and TagsAZ-104 governance: Azure Policy definitions, initiatives, effects and remediation, resource locks, tags and tag inheritance, and…5 min
  4. 4Subscriptions, Management Groups and CostsAZ-104 hierarchy and cost: resource groups, moving resources, subscriptions, management groups and their depth, budgets, cost…5 min

About this chapter

What this chapter covers

This domain is about who can do what, and what rules every resource must follow. It makes up between 20 and 25 percent of the exam, so it is one of the two largest.

The topics are Microsoft Entra users and groups, access to Azure resources through role-based access control, and governance through Azure Policy, locks, tags, subscriptions, management groups and cost controls.

How the topics fit together

Identity comes first, then permissions on resources, then the rules and structure that surround them.

Entra IDusers, groups, guestsRBACroles at a scopePolicy, locks, tagsrules on resourcesSubscriptions and coststructure and budgets
  • Entra users and groups covers creating identities, licenses, external users and self-service password reset.
  • Azure RBAC covers built-in roles, scopes, inheritance and reading an access assignment.
  • Policy, locks and tags covers what resources are allowed to look like and how to protect them.
  • Subscriptions, management groups and costs covers the hierarchy, moving resources, budgets and Advisor.
Exam tip

Keep three questions apart. "Who are you" is Entra ID. "What can you do" is RBAC. "What may the resource look like" is Policy.

How to use these pages

Each topic page has the same shape, so you can skim for what you need.

  • What it is: the idea in plain words.
  • How it works: the mechanism, with diagrams and tables.
  • What to remember for the exam: the facts to memorise.
  • Common mistakes: the classic traps.
  • Check yourself: three questions to test your understanding.

Ready for more practice?

The full Microsoft AZ-104 question bank has 650 questions, with timed practice exams and an explanation for every answer.

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