Quickstart: Create a policy assignment to identify non-compliant resources by using ARM template

In this quickstart, you use an Azure Resource Manager template (ARM template) to create a policy assignment that validates resource's compliance with an Azure policy. The policy is assigned to a resource group and audits virtual machines that don't use managed disks. After you create the policy assignment, you identify non-compliant virtual machines.

An Azure Resource Manager template is a JavaScript Object Notation (JSON) file that defines the infrastructure and configuration for your project. The template uses declarative syntax. You describe your intended deployment without writing the sequence of programming commands to create the deployment.

If your environment meets the prerequisites and you're familiar with using ARM templates, select the Deploy to Azure button. The template opens in the Azure portal.

When assigning a built-in policy or initiative definition, it's optional to reference a version. Policy assignments of built-in definitions default to the latest version and automatically inherit minor version changes unless otherwise specified.

Prerequisites

• If you don't have an Azure account, create a free account before you begin.
• Azure PowerShell or Azure CLI.
• Visual Studio Code and the Azure Resource Manager (ARM) Tools.
• Microsoft.PolicyInsights must be registered in your Azure subscription. To register a resource provider, you must have permission to register resource providers. That permission is included in the Contributor and Owner roles.
• A resource group with at least one virtual machine that doesn't use managed disks.

Review the template

The ARM template creates a policy assignment for a resource group scope and assigns the built-in policy definition Audit VMs that do not use managed disks.

Create the following ARM template as policy-assignment.json.

1. Open Visual Studio Code and select File > New Text File.
2. Copy and paste the ARM template into Visual Studio Code.
3. Select File > Save and use the filename policy-assignment.json.

{
  "$schema": "https://schema.management.azure.com/schemas/2019-04-01/deploymentTemplate.json#",
  "contentVersion": "1.0.0.0",
  "parameters": {
    "policyAssignmentName": {
      "type": "string",
      "defaultValue": "audit-vm-managed-disks",
      "metadata": {
        "description": "Policy assignment name used in assignment's resource ID"
      }
    },
    "policyDefinitionID": {
      "type": "string",
      "defaultValue": "/providers/Microsoft.Authorization/policyDefinitions/06a78e20-9358-41c9-923c-fb736d382a4d",
      "metadata": {
        "description": "Policy definition ID"
      }
    },
    "policyDisplayName": {
      "type": "string",
      "defaultValue": "Audit VM managed disks",
      "metadata": {
        "description": "Display name for Azure portal"
      }
    }
  },
  "resources": [
    {
      "type": "Microsoft.Authorization/policyAssignments",
      "apiVersion": "2023-04-01",
      "name": "[parameters('policyAssignmentName')]",
      "properties": {
        "policyDefinitionId": "[parameters('policyDefinitionID')]",
        "description": "Policy assignment to resource group scope created with ARM template",
        "displayName": "[parameters('policyDisplayName')]",
        "nonComplianceMessages": [
          {
            "message": "Virtual machines should use managed disks"
          }
        ]
      }
    }
  ],
  "outputs": {
    "assignmentId": {
      "type": "string",
      "value": "[resourceId('Microsoft.Authorization/policyAssignments', parameters('policyAssignmentName'))]"
    }
  }
}

The resource type defined in the ARM template is Microsoft.Authorization/policyAssignments.

The template uses three parameters to deploy the policy assignment:

• policyAssignmentName creates the policy assignment named audit-vm-managed-disks.
• policyDefinitionID uses the ID of the built-in policy definition. For reference, the commands to get the ID are in the section to deploy the template.
• policyDisplayName creates a display name that's visible in Azure portal.

For more information about ARM template files:

• To find more ARM template samples, go to Browse code samples.
• To learn more about template reference's for deployments, go to Azure template reference.
• To learn how to develop ARM templates, go to ARM template documentation.
• To learn about subscription-level deployments, go to Subscription deployments with ARM templates.

Deploy the ARM template

You can deploy the ARM template with Azure PowerShell or Azure CLI.

From a Visual Studio Code terminal session, connect to Azure. If you have more than one subscription, run the commands to set context to your subscription. Replace <subscriptionID> with your Azure subscription ID.

PowerShell

Connect-AzAccount

# Run these commands if you have multiple subscriptions
Get-AzSubScription
Set-AzContext -Subscription <subscriptionID>

Azure CLI

az login

# Run these commands if you have multiple subscriptions
az account list --output table
az account set --subscription <subscriptionID>

You can verify if Microsoft.PolicyInsights is registered. If it isn't, you can run a command to register the resource provider.

PowerShell

Get-AzResourceProvider -ProviderNamespace 'Microsoft.PolicyInsights' |
   Select-Object -Property ResourceTypes, RegistrationState

Register-AzResourceProvider -ProviderNamespace 'Microsoft.PolicyInsights'

For more information, go to Get-AzResourceProvider and Register-AzResourceProvider.

Azure CLI

az provider show \
  --namespace Microsoft.PolicyInsights \
  --query "{Provider:namespace,State:registrationState}" \
  --output table

az provider register --namespace Microsoft.PolicyInsights

The Azure CLI commands use a backslash (\) for line continuation to improve readability. For more information, go to az provider.

The following commands display the policyDefinitionID parameter's value:

PowerShell

(Get-AzPolicyDefinition |
  Where-Object { $_.Properties.DisplayName -eq 'Audit VMs that do not use managed disks' }).ResourceId

Azure CLI

az policy definition list \
  --query "[?displayName=='Audit VMs that do not use managed disks']".id \
  --output tsv

The following commands deploy the policy definition to your resource group. Replace <resourceGroupName> with your resource group name:

PowerShell

$rg = Get-AzResourceGroup -Name '<resourceGroupName>'

$deployparms = @{
Name = 'PolicyDeployment'
ResourceGroupName = $rg.ResourceGroupName
TemplateFile = 'policy-assignment.json'
}

New-AzResourceGroupDeployment @deployparms

The $rg variable stores properties for the resource group. The $deployparms variable uses splatting to create parameter values and improve readability. The New-AzResourceGroupDeployment command uses the parameter values defined in the $deployparms variable.

• Name is the deployment name displayed in the output and in Azure for the resource group's deployments.
• ResourceGroupName uses the $rg.ResourceGroupName property to get the name of your resource group where the policy is assigned.
• TemplateFile specifies the ARM template's name and location on your local computer.

Azure CLI

rgname=$(az group show --resource-group <resourceGroupName> --query name --output tsv)

az deployment group create \
  --name PolicyDeployment \
  --resource-group $rgname \
  --template-file policy-assignment.json

The rgname variable uses an expression to get your resource group's name used in the deployment command.

• name is the deployment name displayed in the output and in Azure for the resource group's deployments.
• resource-group is the name of your resource group where the policy is assigned.
• template-file specifies the ARM template's name and location on your local computer.

You can verify the policy assignment's deployment with the following command:

PowerShell

The command uses the $rg.ResourceId property to get the resource group's ID.

Get-AzPolicyAssignment -Name 'audit-vm-managed-disks' -Scope $rg.ResourceId

Name               : audit-vm-managed-disks
ResourceId         : /subscriptions/{subscriptionId}/resourcegroups/{resourceGroupName}/providers/Microsoft.Authorization/policyAssignments/audit-vm-managed-disks
ResourceName       : audit-vm-managed-disks
ResourceGroupName  : {resourceGroupName}
ResourceType       : Microsoft.Authorization/policyAssignments
SubscriptionId     : {subscriptionId}
PolicyAssignmentId : /subscriptions/{subscriptionId}/resourcegroups/{resourceGroupName}/providers/Microsoft.Authorization/policyAssignments/audit-vm-managed-disks
Properties         : Microsoft.Azure.Commands.ResourceManager.Cmdlets.Implementation.Policy.PsPolicyAssignmentProperties

For more information, go to Get-AzPolicyAssignment.

Azure CLI

The rgid variable uses an expression to get the resource group's ID used to show the policy assignment.

rgid=$(az group show --resource-group $rgname --query id --output tsv)

az policy assignment show --name "audit-vm-managed-disks" --scope $rgid

The output is verbose but resembles the following example:

"description": "Policy assignment to resource group scope created with ARM template",
"displayName": "Audit VM managed disks",
"enforcementMode": "Default",
"id": "/subscriptions/{subscriptionId}/resourcegroups/{resourceGroupName}/providers/Microsoft.Authorization/policyAssignments/audit-vm-managed-disks",
"identity": null,
"location": null,
"metadata": {
  "createdBy": "11111111-1111-1111-1111-111111111111",
  "createdOn": "2024-02-26T19:01:23.2777972Z",
  "updatedBy": null,
  "updatedOn": null
},
"name": "audit-vm-managed-disks",
"nonComplianceMessages": [
  {
    "message": "Virtual machines should use managed disks",
    "policyDefinitionReferenceId": null
  }
]

For more information, go to az policy assignment.

Identify non-compliant resources

After the policy assignment is deployed, virtual machines that are deployed to the resource group are audited for compliance with the managed disk policy.

The compliance state for a new policy assignment takes a few minutes to become active and provide results about the policy's state.

PowerShell

$complianceparms = @{
ResourceGroupName = $rg.ResourceGroupName
PolicyAssignmentName = 'audit-vm-managed-disks'
Filter = 'IsCompliant eq false'
}

Get-AzPolicyState @complianceparms

The $complianceparms variable creates parameter values used in the Get-AzPolicyState command.

• ResourceGroupName gets the resource group name from the $rg.ResourceGroupName property.
• PolicyAssignmentName specifies the name used when the policy assignment was created.
• Filter uses an expression to find resources that aren't compliant with the policy assignment.

Your results resemble the following example and ComplianceState shows NonCompliant:

Timestamp                : 2/26/2024 19:02:56
ResourceId               : /subscriptions/{subscriptionId}/resourcegroups/{resourceGroupName}/providers/microsoft.compute/virtualmachines/{vmId}
PolicyAssignmentId       : /subscriptions/{subscriptionId}/resourcegroups/{resourceGroupName}/providers/microsoft.authorization/policyassignments/audit-vm-managed-disks
PolicyDefinitionId       : /providers/microsoft.authorization/policydefinitions/06a78e20-9358-41c9-923c-fb736d382a4d
IsCompliant              : False
SubscriptionId           : {subscriptionId}
ResourceType             : Microsoft.Compute/virtualMachines
ResourceLocation         : {location}
ResourceGroup            : {resourceGroupName}
ResourceTags             : tbd
PolicyAssignmentName     : audit-vm-managed-disks
PolicyAssignmentOwner    : tbd
PolicyAssignmentScope    : /subscriptions/{subscriptionId}/resourcegroups/{resourceGroupName}
PolicyDefinitionName     : 06a78e20-9358-41c9-923c-fb736d382a4d
PolicyDefinitionAction   : audit
PolicyDefinitionCategory : tbd
ManagementGroupIds       : {managementGroupId}
ComplianceState          : NonCompliant
AdditionalProperties     : {[complianceReasonCode, ]}

For more information, go to Get-AzPolicyState.

Azure CLI

policyid=$(az policy assignment show \
  --name "audit-vm-managed-disks" \
  --scope $rgid \
  --query id \
  --output tsv)

az policy state list --resource $policyid --filter "(isCompliant eq false)"

The policyid variable uses an expression to get the policy assignment's ID. The filter parameter limits the output to non-compliant resources.

The az policy state list output is verbose, but for this article the complianceState shows NonCompliant.

"complianceState": "NonCompliant",
"components": null,
"effectiveParameters": "",
"isCompliant": false,

For more information, go to az policy state.

Clean up resources

PowerShell

Remove-AzPolicyAssignment -Name 'audit-vm-managed-disks' -Scope $rg.ResourceId

To sign out of your Azure PowerShell session:

Disconnect-AzAccount

Azure CLI

az policy assignment delete --name "audit-vm-managed-disks" --scope $rgid

To sign out of your Azure CLI session:

az logout

Next steps

In this quickstart, you assigned a policy definition to identify non-compliant resources in your Azure environment.

To learn more about how to assign policies that validate resource compliance, continue to the tutorial.

Tutorial: Create and manage policies to enforce compliance