AZ-104 · Domain 2 of 5 by weight
Manage Azure Identities and Governance
By Falakhe Sivela · Updated 2026-07-13
Manage Azure Identities and Governance accounts for 20% of the Microsoft Certified: Azure Administrator Associate — roughly 10 of the 50 questions you will see. It ranks 2 of 5 by weight, so it deserves proportionate — not equal — study time.
What this domain actually tests
Everyone knows RBAC basics. The exam probes the edges, and that is where candidates who "basically know RBAC" quietly bleed points.
The four built-in roles, and the one fact that separates them:
- Owner — everything, including granting access to others.
- Contributor — everything except granting access.
- Reader — view only.
- User Access Administrator — only granting access.
"Contributor cannot assign roles" is a reliable exam fact and a reliable trap. A scenario where someone needs to manage resources and grant a colleague permission requires Owner or User Access Administrator, not Contributor.
Scope and inheritance. Assignments can be made at management group, subscription, resource group, or resource level, and they inherit downward. An assignment at the subscription applies to every resource group inside it.
The traps
Azure roles versus Entra roles. Azure roles control access to resources. Entra roles control access to identity administration — creating users, managing groups, assigning licences. Being Owner on a subscription grants you nothing inside Entra ID itself.
A resource lock beats RBAC. A CanNotDelete lock stops even an Owner from deleting the resource. If a question asks how to prevent deletion of a critical resource even by administrators, the answer is a lock, not a role change. The exam likes this precisely because it breaks the intuition that Owner is absolute.
Dynamic groups need a licence. Membership from a rule over user attributes (department, job title) is a P1 feature. So is self-service password reset for cloud users, and conditional access. Questions describe a capability and ask what is required — and the answer is sometimes a licence, not a configuration.
Attributes change, membership changes. With a dynamic group, if a user's department is updated, they are added to or removed from the group automatically. That is the point of them, and it is a question.
Management groups organise subscriptions. If a policy must apply to many subscriptions, it is assigned at the management group level, not repeated per subscription.
How to study it
Drill these as flashcards rather than reading them. They are memorisable, they are stable across exam revisions, and they are exactly what gets asked.
Start with a single card: "Contributor cannot do what?" If the answer does not come instantly, this domain is not yet safe for you.
Then build the scope ladder — management group → subscription → resource group → resource — and practise answering "where should this assignment be made?" for a handful of requirements. The right answer is almost always the highest scope that covers exactly what is needed and nothing more, which is least privilege applied to placement rather than permissions.
What this domain covers
- Microsoft Entra ID users and groups
- RBAC role assignments at scope levels
- Azure Policy and resource locks
- Subscriptions and management groups
These are the topics Prepa uses to generate AZ-104 practice questions for this domain, so your practice is weighted the way the exam is.
The other AZ-104 domains
- Manage Azure Identities and Governance (this page)20%
- Implement and Manage Storage20%
- Deploy and Manage Azure Compute Resources25%
- Implement and Manage Virtual Networking20%
- Monitor and Maintain Azure Resources15%
For the full exam format, scoring, and a study plan, read the Azure Administrator (AZ-104) Study Guide.