Microsoft Conditional Access Policy in Simple Words

The best way to think about Microsoft conditional access policy is to imagine a series of If-Then statements. These are prebuilt or custom-made rules that check if you meet a certain condition (have the right credentials, using a secure network, etc.). Then, provide you with access (which can be full or limited) to a resource or block you from having that access.

This is a security feature that goes beyond simple username and password checks. Conditional access is Microsoft’s Zero Trust policy engine in action. It leverages the digital signals that users generate to automate policy enforcement. Speaking of signals, let us take a look at what qualifies as a genuine signal and what does not.

What Signals Does Microsoft Conditional Access Policy Use to Allow/Deny Entry?

These are the five Vowels of Verification that act as the source for CAP signals

1. Applications and Data: M365 is a complete business suite with more than 50 different applications. Admins can set unique Conditional Access policies that trigger for a specific app. Combine this with Microsoft Defender, and admins get access to a continuous data stream. Which strengthens both visibility and control over what is being accessed and what activities are happening inside the cloud infrastructure.
2. Endpoint Devices: Users don’t use single privileged access workstations anymore. Their work is done through their laptop, mobiles, smartwatches, etc. Admins can mark these devices to reflect a specific state (like “compliant” or “hybrid Azure AD joined”) & enforce policies accordingly. Plus, you have options for device-level filters to target policies on a particular piece of hardware.
3. Identity: Precise control over user behavior can be achieved by studying the signals that come out of the user and group membership interactions. This can be done by tracking sign-in behavior in real-time.
4. Organization: Risky behaviour like repeated login failures can be flagged as possible attack vectors. This becomes possible when you start signal integration with Microsoft Entra ID Protection + Conditional Access in Microsoft.
5. User Network: Even the underlying infrastructure that is being used to connect to M365 is a possible signal source. Polices can be put in place that judge whether the IP/Location of the user is known, on a secure network channel, and can be trusted or not.

Now that we know what the signals are, let us see what they are used for.

Which Policy Decisions is Microsoft Conditional Access Policy Responsible for?

All possible decisions that can come from processing signals lie between allowing full access and blocking access completely.

Between these two states exists a spectrum of access privileges that can be assigned based on pre-determined factors. The requirement list is as follows:

• MFA (Multifactor Authentication)
• Authentication strength (Password must be 8+ characters with a combination of letters, numbers, & symbols.)
• Device to be marked as compliant (Device used to access the resources/apps must be known to the company network)
• Microsoft Entra hybrid joined device(advanced version of compliant devices, useful for private devices)
• Approved client app (Any third-party app being used must use a CAP)
• App protection policy (Company/user data must stay safe in apps)
• Password change (Password expires automatically after a certain time or after a leak)
• Terms of use(some apps, other infrastructure may contain their own TOS)

Also Read: How to Save Sent Items in Shared Mailbox Office 365

Where in M365 Environment Should I Use CAPS?

Microsoft Conditional Access policies are useful in real-life situations. Look at the sample templates. You will notice that some polices are shared between different scenarios. This is deliberate. As some polices hold so much importance that they form the bedrock for the more advanced use cases. These are:

• MFA for Admins.
• Protecting the security credentials.
• Block old and insecure authentication methods
• MFA for accessing the admin center.
• MFA for all users plus a compliant device or Microsoft Entra hybrid joined device.
• MFA for managing Azure infrastructure.

Once the Baseline foundation level setup is complete, deploy additional CAPS in the following situations.

Zero Trust systems: These operate on a policy of never-trust-always-verify. So require:

• MFA for guest access.
• MFA for risky sign-ins (P2 license).
• Password change for high-risk users (P2 license).
• Block access for unknown or unsupported device platform.
• No persistent browser session: Reduces the window of opportunity for an attacker
• Approved client apps or app protection policies: A core Zero Trust control for BYOD.
• Block access for users with insider risk (Microsoft Purview).

Remote work: Secures users outside the corporate network. So, retains all foundational policies except certain admin-specific MFA rules.

• Adds MFA for guests and automated responses for risky sign-ins/users.
• Requires approved/protected apps and uses “application enforced restrictions” (like blocking downloads) for unmanaged devices.
• Specifically requires compliant devices for administrators.

Protect Administrator: Our goal here is to add the strongest, non-negotiable protection to our privileged accounts.

• Require phishing-resistant MFA for administrators: Mandates the highest security (FIDO2 keys)
• Require a compliant or Microsoft Entra hybrid-joined device for administrators.

This template is admin-centric, so you can drop all general user policies

Emerging Threats: To protect against new, never-before-seen threats, a phishing-resistant MFA for administrators style policy is a must.

Pre-Requisites for Using Conditional Access Policies

CAPS are a premium service and can’t be deployed everywhere. So check:

Whether you have the Microsoft Entra ID P1 license or not. Moreover, some policies(the ones that require Microsoft Entra ID Protection) are only available within the Microsoft Entra ID P2 subscription.

Check Out: How Admins Can Allocate Microsoft 365 Licenses Using 4 Techniques

CAPS are available as a facility to organizations with Microsoft 365 Business Premium or Enterprise-grade licenses.

Moreover, if due to billing errors, your Conditional Access licenses expire, the policies remain in place. So you don’t have to worry about security when you sort out the payment problems.

Even if you lack the Conditional Access policy, Microsoft covers all of its users within its Security Defaults umbrella.

How to Configure Microsoft Conditional Access Policies?

Follow these steps to create your first CAP using Microsoft Entra ID. Official guidelines split the process into two stages

Stage One: Collect Session Details.

Here, you, or rather, ask the policy to gather the details about who is signing in, from where, and with what device.

Stage Two: Enforce Policy

Once the data is ready, deploy the policy that performs checks in the following order.

• Check for block
• Grant Controls
• Apply session controls

When you make a new policy, it must:

Have a Name.

Assignments

• Users and/or groups
• Cloud apps or actions

Access controls

• Grant or Block controls

Best Practices for Organizations Using/Want to Use M365 Conditional Access

• If you use more than one switch, all switches must be satisfied to trigger a policy.
• Exclude emergency access or break-glass admin accounts from policies to prevent a total lockout due to policy misconfiguration.
• Use an Office 365 backup software to add a second layer of security to your organization’s data.

Conclusion

Here in this blog, we discussed what exactly the Microsoft Conditional Access Policy is. This unique way to read digital signals through organizational policies leads to better decisions and security for all. With conditional policies, you ensure that all users have access to resources whenever they require and wherever they might be. All of this while protecting the critical assets of your organization.