Your company has 300 subscriptions split across three divisions: Retail, Manufacturing, and R&D. You need to enforce an organization-wide policy that denies public IP creation, apply different allowed-location policies per division, grant tenant-wide Reader access to Auditors, and allow subscription owners to manage their own resources. What management group and assignment design should you implement?
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Correct answer: Create a hierarchy: Root -> Corp -> {Retail, Manufacturing, R&D}. Assign Deny Public IPs at Corp. Assign division-specific Allowed Locations at each division MG. Assign Reader to the Auditors group at Root. Keep RBAC at subscription for owners.
Why this is the answer
This design effectively addresses all requirements. A hierarchical structure (Root - Corp - Divisions) allows for centralized policy enforcement and granular control. Denying public IP creation at the Corp management group ensures it applies to all divisions without needing individual assignments. Division-specific allowed locations are applied precisely where needed. Granting Reader access to auditors at the Root management group provides tenant-wide visibility. Allowing subscription owners to manage their resources is the default behavior and doesn't require additional management group policy assignments. Incorrect options: A flat hierarchy is unmanageable and doesn't allow for efficient policy inheritance. Assigning policies at the resource group level is too granular and doesn't scale for 300 subscriptions and organization-wide policies. Azure Lighthouse is for managing resources across multiple tenants, not for internal policy enforcement within a single tenant. Assigning all policies at Root would apply the same allowed locations to all divisions, which contradicts the requirement for division-specific policies.
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