Privileged Access Management in Azure AD: A Practical Guide

Privileged accounts can make significant changes to an organisation’s identity systems, applications and cloud resources. If one is compromised or misused, the consequences may include data exposure, service disruption or loss of control over critical systems. Privileged access management (PAM) helps reduce these risks by controlling who can use powerful permissions, when they can use them and how that use is monitored.

Azure Active Directory (Azure AD) is now called Microsoft Entra ID. The name has changed, but the need to manage administrative access remains. Microsoft Entra Privileged Identity Management (PIM) provides tools to govern access to Microsoft Entra roles, Azure resource roles and certain privileged groups.

What is privileged access management?

Privileged access management is the set of policies and processes used to protect accounts and permissions with elevated access. These may include Global Administrators, Security Administrators, subscription Owners and other roles that can manage users, security settings or cloud infrastructure.

A common security weakness is keeping users permanently assigned to powerful roles, even when those permissions are only needed occasionally. PAM addresses this through controls such as just-in-time access, approval requirements, multi-factor authentication (MFA), time limits and activity reviews.

How Microsoft Entra PIM works

Microsoft Entra PIM lets administrators manage privileged role assignments using two main access states:

• Eligible: The user is authorised to activate the role when required, but does not hold its permissions continuously.
• Active: The role is currently enabled and its permissions can be used.

An eligible user can activate a role for a defined period. Depending on the organisation’s configuration, activation may require MFA, a business justification or approval from another person. The assignment can then expire automatically, reducing the risk of standing privileges being left in place.

PIM can also provide alerts and audit information to help administrators review role assignments and activation activity. Exact features and licensing requirements vary, so check current Microsoft licensing guidance before planning a deployment.

Why use PIM for Azure AD and Microsoft Entra ID?

Using PIM can help organisations:

• Reduce standing access: Keep powerful permissions inactive until they are needed.
• Limit the impact of compromised accounts: Require additional checks before privileged permissions become active.
• Improve accountability: Record who activated a role, when they did so and, where required, why.
• Support access reviews: Regularly check whether users still need privileged access.
• Strengthen governance: Apply consistent approval, authentication and expiry rules to administrative roles.

PIM is not a replacement for secure account practices, monitoring or a broader identity security strategy. It is one important layer in a defence-in-depth approach.

Directory roles and Azure resource roles

It is important to distinguish between roles in Microsoft Entra ID and roles used to manage Azure resources.

Microsoft Entra roles control directory tasks, such as managing users, applications, authentication methods or security settings. Examples include Global Administrator, User Administrator and Security Administrator.

Azure role-based access control (Azure RBAC) roles control access to Azure resources, such as subscriptions, resource groups and virtual machines. Examples include Owner, Contributor and Reader. PIM can be used to manage eligible assignments for supported Azure roles, as well as eligible assignments for supported directory roles.

Assign permissions at the narrowest practical scope. For instance, a person who only needs to manage one resource group should not automatically receive broad subscription-level permissions.

Setting up privileged access management

A successful PIM deployment starts with a clear understanding of the organisation’s current access. The following steps provide a practical starting point.

1. Identify privileged accounts and roles. Review directory roles, Azure RBAC assignments, privileged groups and service accounts. Look for permanent assignments that are no longer required.
2. Define who needs access. Confirm role ownership and business need with the relevant service or system owners. Avoid assigning broad roles for convenience.
3. Move suitable users to eligible assignments. Where appropriate, replace permanent active assignments with eligible access that must be activated when required.
4. Set activation controls. Consider requiring MFA, a justification, approval and a limited activation duration. Use stronger controls for highly sensitive roles.
5. Configure notifications and reviews. Send alerts for important role changes and activations, and schedule regular access reviews.
6. Test the process. Trial the configuration with a small group. Check that authorised staff can activate access promptly and that approval and expiry behave as expected.
7. Monitor and improve. Review audit records, investigate unexpected activity and adjust policies as roles and business needs change.

Best practices for managing privileged access

• Use least privilege. Grant only the permissions needed for a person’s duties, at the smallest suitable scope.
• Keep routine accounts separate. Use a dedicated administrative account for privileged tasks rather than browsing email or the web with an account that holds elevated permissions.
• Require strong authentication. Apply MFA and appropriate authentication policies to administrative users, including during role activation where supported.
• Keep activation periods short. Set durations that suit the task, rather than leaving privileged roles active longer than necessary.
• Use approval selectively. Approval can add oversight for sensitive roles, but the approval process must be available when legitimate work is urgent.
• Review access regularly. Remove assignments that are unused, outdated or no longer supported by a clear business need.
• Protect emergency access accounts. Maintain carefully controlled emergency accounts for exceptional situations. Monitor their use, secure their credentials and test them periodically.
• Monitor service principals and automation. Human role activation is only part of the picture. Review application permissions, managed identities and other non-human identities as well.
• Plan for operational resilience. Ensure there are appropriate administrators and approval routes available during holidays, incidents or staff changes.

Common mistakes to avoid

One frequent mistake is treating PIM as a one-off configuration exercise. Role assignments, business responsibilities and cloud environments change, so access needs ongoing review. Another is applying approval requirements without ensuring that approvers are available or that an emergency process exists.

Organisations should also avoid relying on PIM alone to protect highly privileged accounts. Strong authentication, secure workstations, careful credential handling, logging and incident response remain essential. Finally, emergency access accounts should not become routine administrator accounts; their purpose and use should be clearly defined.

Conclusion

Privileged access management in Azure AD, now Microsoft Entra ID, helps organisations control and monitor access to their most powerful identity and cloud roles. By using eligible assignments, time-limited activation, strong authentication, approval where appropriate and regular reviews, teams can reduce unnecessary standing privileges without preventing administrators from doing their work.

The best results come from treating PIM as part of a wider security programme: understand who has access, grant only what is needed, monitor how privileges are used and review the arrangements regularly.

 

Azure AD Privileged Access Management: 5 Frequently Asked Questions

1. What is privileged access management in Azure AD?
2. How does Privileged Identity Management (PIM) work in Azure AD?
3. How do I enable just-in-time privileged access in Azure AD?
4. What is the difference between Azure AD roles and Azure resource roles?
5. What are the best practices for securing privileged accounts in Azure AD?

What is privileged access management in Azure AD?

Privileged access management in Azure AD—now called Microsoft Entra ID—is the process of controlling and monitoring access to accounts and roles with elevated permissions. Microsoft Entra Privileged Identity Management (PIM) helps organisations limit permanent administrator access by allowing authorised users to activate eligible roles only when needed, often for a set period and with controls such as multi-factor authentication, approval or a reason for activation. This reduces standing privileges and helps improve oversight of sensitive administrative activity.

How does Privileged Identity Management (PIM) work in Azure AD?

Privileged Identity Management (PIM) in Azure AD, now Microsoft Entra ID, helps control access to powerful directory and Azure roles. Instead of keeping users permanently active in privileged roles, administrators can assign them as eligible, allowing them to activate access only when needed and for a limited time. Activation can require multi-factor authentication, a reason for access or approval, depending on the organisation’s settings. PIM also provides audit information and alerts to help administrators review privileged activity and keep access aligned with business needs.

How do I enable just-in-time privileged access in Azure AD?

To enable just-in-time privileged access in Azure AD, now called Microsoft Entra ID, use Microsoft Entra Privileged Identity Management (PIM). In the Microsoft Entra admin centre, open PIM, choose the relevant directory role and assign the user as **Eligible** rather than permanently active. Configure activation settings such as MFA, a business justification, approval and a maximum activation duration, then save the changes. When access is needed, the user requests activation through PIM and receives the role for the approved period. Check that your organisation has the required licence and test the settings with a small group before rolling them out.

What is the difference between Azure AD roles and Azure resource roles?

Azure AD roles, now known as Microsoft Entra roles, control access to identity and directory tasks, such as managing users, groups, applications and security settings. Azure resource roles control what users can do with Azure resources, such as virtual machines, storage accounts and subscriptions. For example, a User Administrator manages directory users, while an Azure Contributor can create and manage resources within an assigned scope. The two role types are managed separately, so assign only the permissions needed and at the narrowest suitable scope.

What are the best practices for securing privileged accounts in Azure AD?

Best practices for securing privileged accounts in Azure AD (now Microsoft Entra ID) include applying least privilege, using separate accounts for administrative tasks and requiring strong multi-factor authentication. Use Privileged Identity Management (PIM) to make access eligible and time-limited, with approval and justification for sensitive roles where appropriate. Review role assignments regularly, remove permissions that are no longer needed, and monitor sign-ins, role activations and changes to privileged accounts. Protect emergency access accounts with secure credentials and alerts, and test them periodically so they remain available for genuine emergencies.