To effectively set up Conditional Access (CA) policies in Microsoft Entra ID, administrators should follow best practices that enhance security while ensuring usability. Here are the key recommendations:

Best Practices for Setting Up Conditional Access Policies

1. Define Clear Objectives

• Establish what you aim to protect, such as sensitive data or critical applications.
• Conduct a risk assessment to identify vulnerabilities and prioritize resources based on their sensitivity and business impact.

2. Design an Audience Matrix

• Create an audience matrix to categorize users by roles and responsibilities within the organization.
• This helps tailor policies to specific user groups, streamlining policy management and reducing redundancy.

3. Use Multi-Factor Authentication (MFA)

• Require MFA for all users accessing sensitive resources, especially from non-compliant or unfamiliar devices.
• Implementing MFA can prevent up to 99.9% of account hacks, significantly bolstering security.

4. Implement Risk-Based Policies

• Utilize risk-based Conditional Access policies that adjust access controls based on factors like user location, device health, and behavior patterns.
• This adaptive approach enhances security without overly restricting user productivity.

5. Establish a Naming Convention

• Develop a consistent naming convention for policies to simplify identification and troubleshooting.
• For example, prefix policies with letters indicating their purpose (e.g., “P” for privileged accounts).

6. Avoid Overly Granular Policies

• Create broad policies rather than highly specific ones to minimize gaps in coverage.
• Remember that Conditional Access evaluates only the first 195 policies in scope for a user, so fewer, well-defined policies are more manageable.

7. Classify Applications

• Categorize applications based on their business impact and sensitivity of data accessed.
• Ensure every application is subject to at least one Conditional Access policy to maintain comprehensive security coverage.

8. Test Policies Before Enforcement

• Use the “What If” tool in Microsoft Entra ID to simulate policy effects before applying them.
• Start new policies in report-only mode to monitor their impact on users without enforcing them immediately.

9. Include Break-Glass Accounts

• Create emergency access accounts (break-glass accounts) that are excluded from all Conditional Access policies.
• This prevents administrators from being locked out of the system due to overly restrictive policies.

10. Regularly Review and Update Policies

• Continuously monitor and adjust Conditional Access policies based on new threats and organizational changes.
• Schedule regular reviews (e.g., quarterly) to ensure policies remain effective and relevant.

By adhering to these best practices, administrators can create robust Conditional Access policies that protect organizational resources while maintaining user accessibility and productivity.