Understanding Security in Azure: Governance, Risk, and Compliance

We’ve reached the final entry in our series on basic security concepts in Azure. Today, we’ll explore three ideas that aren’t directly tied to technology itself, but rather to the world we live in and the rules that govern it. These concepts are Governance, Risk, and Compliance (GRC).

Governance

Governance refers to the system of rules, processes, and practices that organizations (such as companies) use to direct, manage, and control their activities. While governance often seems like an internal matter, many of its rules are shaped by external interactions. For example, governance defines how access to organizational resources is granted, and who has the permissions to administer them.

Risk

Risk management is the process of identifying, addressing, and responding to threats or events that may impact an organization and its objectives. Risks can be internal or external. External risks might include changes in government policy or economic shifts. Internal risks originate from within the organization — for example, when sensitive information is accidentally leaked to the public.

Compliance

Compliance refers to the rules or laws that an organization must follow based on the country, state, or region where it operates — as well as international agreements or standards. These rules not only dictate how certain activities must be carried out, but also specify the penalties for non-compliance. A clear example is the data storage and privacy policies we’ve all encountered recently on websites — known as “cookie consent” notices. These stem from compliance with EU data protection laws. Key areas covered by compliance rules include: Data residency (where the data center is physically located), Data sovereignty (which region requested or governs the data) and Data privacy (how personal data is handled, which can vary by region).

Conclusions

While these concepts alone don’t guarantee security, they are essential when defining an organization’s strategy and how it will be executed. Today, understanding the rules we must follow and deciding who can access our resources is crucial to offering a secure and reliable service.

With this fifth and final post, we wrap up our series on Azure security fundamentals. Let me know in the comments if you’d like to see a new series covering more advanced topics. See you next time!