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Guided MS-102 Domain 1
Domain 1 — Module 8 of 8 100%
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MS-102 Study Guide

Domain 1: Deploy and Manage a Microsoft 365 Tenant

  • Establish and Configure Your M365 Tenant
  • Monitor Tenant Health and Network Readiness
  • Adoption Tracking and Microsoft 365 Backup
  • Manage Users, Contacts and External Identities
  • Groups, Shared Mailboxes and Licensing at Scale
  • Automate with PowerShell: Bulk User Operations
  • Roles, Role Groups and Workload Permissions
  • Delegate with Administrative Units and PIM

Domain 2: Implement and Manage Microsoft Entra Identity and Access

  • Prepare for Identity Synchronization
  • Implement Connect Sync and Cloud Sync
  • Monitor and Troubleshoot Identity Sync
  • Authentication Methods and Self-Service Password Reset
  • Password Protection and Authentication Troubleshooting
  • Entra Identity Protection and Risk Policies
  • Conditional Access and MFA Enforcement

Domain 3: Manage Security and Threats by Using Microsoft Defender XDR

  • Defender XDR: Security Posture and Threat Intelligence
  • Investigate Incidents with Advanced Hunting
  • Defender for Office 365: Threat Policies
  • Email Threats, Attack Simulation and Restricted Entities
  • Defender for Endpoint: Onboard and Protect
  • Vulnerability Management
  • Defender for Cloud Apps: Connect and Govern
  • Cloud App Discovery and Activity Monitoring

Domain 4: Manage Compliance by Using Microsoft Purview

  • Sensitive Information Types and Data Classification
  • Retention Labels and Data Lifecycle
  • Sensitivity Labels and Monitoring
  • DLP Policies Across M365 Workloads
  • Endpoint DLP and Alert Response

MS-102 Study Guide

Domain 1: Deploy and Manage a Microsoft 365 Tenant

  • Establish and Configure Your M365 Tenant
  • Monitor Tenant Health and Network Readiness
  • Adoption Tracking and Microsoft 365 Backup
  • Manage Users, Contacts and External Identities
  • Groups, Shared Mailboxes and Licensing at Scale
  • Automate with PowerShell: Bulk User Operations
  • Roles, Role Groups and Workload Permissions
  • Delegate with Administrative Units and PIM

Domain 2: Implement and Manage Microsoft Entra Identity and Access

  • Prepare for Identity Synchronization
  • Implement Connect Sync and Cloud Sync
  • Monitor and Troubleshoot Identity Sync
  • Authentication Methods and Self-Service Password Reset
  • Password Protection and Authentication Troubleshooting
  • Entra Identity Protection and Risk Policies
  • Conditional Access and MFA Enforcement

Domain 3: Manage Security and Threats by Using Microsoft Defender XDR

  • Defender XDR: Security Posture and Threat Intelligence
  • Investigate Incidents with Advanced Hunting
  • Defender for Office 365: Threat Policies
  • Email Threats, Attack Simulation and Restricted Entities
  • Defender for Endpoint: Onboard and Protect
  • Vulnerability Management
  • Defender for Cloud Apps: Connect and Govern
  • Cloud App Discovery and Activity Monitoring

Domain 4: Manage Compliance by Using Microsoft Purview

  • Sensitive Information Types and Data Classification
  • Retention Labels and Data Lifecycle
  • Sensitivity Labels and Monitoring
  • DLP Policies Across M365 Workloads
  • Endpoint DLP and Alert Response
Domain 1: Deploy and Manage a Microsoft 365 Tenant Premium ⏱ ~16 min read

Delegate with Administrative Units and PIM

Scope admin permissions to specific departments with administrative units, and enforce just-in-time access with Privileged Identity Management.

Beyond roles: Scoping and time-limiting admin access

☕ Simple explanation

Roles tell an admin WHAT they can do. Administrative units tell them WHERE they can do it. PIM tells them WHEN they can do it.

Think of a hotel chain. A hotel manager role says “you can check guests in and manage rooms.” An administrative unit says “but only at the Auckland location.” PIM says “and only when you clock in for your shift — outside those hours, your keycard doesn’t work.”

Together, these three controls — role + scope + time — create the tightest possible admin access model.

Microsoft Entra ID provides two complementary mechanisms for refining administrative access beyond basic role assignment:

  • Administrative units (AUs) — logical containers that scope role assignments to a subset of users, groups, or devices. An admin with User Administrator role scoped to an AU can only manage users within that AU, not the entire directory.
  • Privileged Identity Management (PIM) — a governance service that provides just-in-time (JIT), time-bound, and approval-based role activation. Instead of permanently assigned admin roles, admins are “eligible” and must activate their role when needed.

Both require licensing: administrative units require Entra ID P1 or higher; Privileged Identity Management requires Entra ID P2. The exam tests practical scenarios: when to use AUs vs role groups, PIM activation workflows, and how to combine both for maximum security.

Administrative units: Scoped delegation

What administrative units do

Without AUs, a User Administrator can manage ALL users in the tenant. With AUs, you scope that role to a specific set of users.

Without AUsWith AUs
User Admin can reset passwords for all 20,000 usersUser Admin scoped to “Singapore AU” can only reset passwords for the 3,000 Singapore users
Help Desk can manage groups across the whole tenantHelp Desk scoped to “Finance AU” can only manage finance department groups
No visibility boundaries between regions or departmentsEach regional admin sees and manages only their scope

Priya’s AU design for GlobalReach

GlobalReach has offices in 6 countries. Priya creates administrative units to delegate user management to regional IT teams:

Administrative UnitContainsScoped AdminsRole
AU-Singapore5,000 Singapore users + groupsSingapore IT LeadUser Administrator
AU-Sydney3,000 Sydney users + groupsSydney IT ManagerUser Administrator, Helpdesk Administrator
AU-London4,000 London users + groupsLondon IT TeamUser Administrator
AU-Tokyo3,000 Tokyo users + groupsTokyo IT LeadUser Administrator
AU-Mumbai3,000 Mumbai users + groupsMumbai IT TeamUser Administrator
AU-New York2,000 NY users + groupsNY IT ManagerUser Administrator, Groups Administrator

Now the Sydney IT Manager can reset passwords and manage groups for Sydney users only — they can’t see or modify Singapore users.

Creating and managing AUs

  1. Create the AU — Entra admin center > Administrative units > New
  2. Add members — manually select users/groups, or use dynamic membership rules (Entra P1+)
  3. Assign roles scoped to the AU — select a role, then scope it to the specific AU
  4. Restrict management — optionally mark the AU as “restricted” so only AU-scoped admins (and Global Admins) can manage its members
ℹ️ Deep dive: Dynamic vs static AU membership

Like groups, AUs support two membership types:

  • Static (assigned) — manually add users and groups
  • Dynamic — automatic membership based on user attributes

Dynamic AU membership rule example:

(user.country -eq "Australia") and (user.department -ne "Executive")

This automatically places all Australian non-executive users in the AU. When someone transfers to Australia, they’re automatically added. When they leave, they’re removed.

Exam note: Dynamic AUs require Entra ID P1 or higher. The exam may ask which licensing is needed for dynamic administrative units.

Privileged Identity Management (PIM)

The problem PIM solves

Without PIM, admin roles are permanently assigned — the account has full admin rights 24/7, whether the person is actively doing admin work or watching Netflix. If the account is compromised, the attacker has standing admin access.

With PIM, roles are eligible — the admin must explicitly activate the role when needed, for a limited time, with optional approval.

PIM concepts

ConceptWhat It Means
Eligible assignmentUser CAN activate the role but doesn’t have it until they do
Active assignmentUser HAS the role right now (permanent or time-bound)
ActivationThe process of turning an eligible assignment into an active one
Activation durationHow long the role stays active (e.g., 4 hours, 8 hours)
Approval requiredWhether another admin must approve the activation request
MFA requiredWhether the user must complete MFA to activate
JustificationA reason the admin provides when activating

PIM workflow example

Elena at MedGuard Health is eligible for Security Administrator but doesn’t have standing access:

  1. Elena opens PIM — Entra > Identity Governance > Privileged Identity Management
  2. Requests activation — selects Security Administrator, sets duration to 4 hours
  3. Provides justification — “Investigating potential phishing incident INC-2847”
  4. Completes MFA — verifies identity
  5. Approval — her manager (or a designated approver) approves the request
  6. Role activates — Elena now has Security Administrator for 4 hours
  7. Auto-deactivation — after 4 hours, the role is automatically removed
FeaturePermanent AssignmentPIM Eligible Assignment
Role availability24/7 — always activeOnly when activated (just-in-time)
Compromise riskHigh — attacker gets immediate admin accessLow — attacker must also activate, pass MFA, and get approval
Audit trailLimited — no activation events to logRich — every activation is logged with justification
Time-boundNo — permanent until removedYes — auto-deactivates after configured duration
MFA at activationNot enforced at role useCan require MFA for every activation
Approval workflowNot availableConfigurable — one or two approvers
LicensingIncluded with Entra IDRequires Entra ID P2

Configuring PIM role settings

For each role, admins configure:

SettingOptionsRecommendation
Maximum activation duration0.5 to 24 hours4-8 hours for most roles
Require MFA on activationYes/NoAlways Yes
Require justificationYes/NoAlways Yes
Require approvalYes/No + designated approversYes for high-impact roles (Global Admin, Exchange Admin)
NotificationEmail on activation/approvalEnable for all roles
Eligible assignment expiryPermanent or time-boundTime-bound (e.g., 6 months with renewal)
💡 Exam tip: PIM for Global Administrator

The exam frequently tests PIM configurations for Global Administrator:

  • Zero permanent Global Admins (except break-glass accounts) — use PIM for all active Global Admin access
  • Require approval for Global Admin activation — a Security Admin or Privileged Role Admin must approve
  • Maximum 2 break-glass accounts with permanent Global Admin — these should be cloud-only, excluded from CA policies, and monitored with alerts
  • Activation duration — keep it short (4 hours max) for Global Admin

If the exam describes “reducing standing admin access risk,” PIM is almost certainly the answer.

PIM access reviews

PIM integrates with access reviews to periodically verify that role assignments are still needed:

  • Who reviews: Self-review, manager, or designated reviewers
  • Frequency: Weekly, monthly, quarterly, or one-time
  • What happens if not reviewed: Auto-remove (recommended) or no action
  • Scope: All eligible assignments, all active assignments, or specific roles

Priya runs quarterly access reviews for all PIM-eligible roles at GlobalReach. If a regional admin hasn’t activated their eligible role in 90 days, the eligible assignment is removed.

Key concepts to remember

Question

What is the difference between an administrative unit and a security group for delegation?

Click or press Enter to reveal answer

Answer

Administrative units scope ROLE ASSIGNMENTS — they limit where an admin role applies (e.g., User Admin only for Sydney users). Security groups control resource ACCESS — they determine who can access a SharePoint site or receive a licence. AUs scope admin power; groups scope user permissions.

Click to flip back

Question

What licensing is required for PIM and dynamic administrative units?

Click or press Enter to reveal answer

Answer

Administrative units (static or dynamic) require Microsoft Entra ID P1 or higher. Privileged Identity Management requires Entra ID P2. Both features are included in Microsoft 365 E5 and EMS E5.

Click to flip back

Question

What is a 'break-glass' account and how does it relate to PIM?

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Answer

A break-glass account is an emergency Global Admin account that has PERMANENT (not PIM-eligible) assignment. It's used when PIM, MFA, or Conditional Access is misconfigured and normal admin access is locked out. Best practices: cloud-only, excluded from CA policies, monitored with alerts, credentials stored securely offline. Keep a maximum of 2.

Click to flip back

Question

Name three controls PIM provides that permanent role assignment does not.

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Answer

1. Just-in-time activation (role is only active when needed). 2. Approval workflows (another admin must approve the activation). 3. Time-bound access (role auto-deactivates after a configured duration). All three reduce the attack surface of admin accounts.

Click to flip back

Knowledge check

Knowledge Check

Priya wants the Sydney IT Manager to manage user passwords and groups for Sydney employees only — not for users in Singapore, London, or any other office. Which approach should Priya use?

Knowledge Check

Elena's organisation requires that Security Administrator access is never standing — admins must activate it when needed, provide a justification, complete MFA, and have their manager approve. The role should auto-deactivate after 4 hours. What should Elena configure?

🎬 Video coming soon


Domain 1 complete! Next up: Domain 2 — Prepare for Identity Synchronization — where hybrid identity begins.

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