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Obtain the right permissions:

Common RBAC - Roles:

  • Owner: Has full access to all resources, including the ability to delegate access to other users.
  • Contributor: Can create and manage Azure resources.
  • Reader: Can view only existing Azure resources.

Roles to manage Management groups:

  • User Access Administrator: Can manage access to Azure resources.
  • Global Admin

Therefore we now fetch the User Access Admin - Permissions \ Global Admin - Permissions to be allowed to create Management groups.

Creating a Management group:

Moving a subscription to a Management group:

By default, Subscription will always be directly under the root management group.

Azure Resource Management Hierarchy:

Example design:

Azure Management group design principles and capabilities:

  • Management groups can mirror your billing hierarchy.
  • You use Management groups to model your organization.
  • Azure Subscriptions can be grouped based on a need for common roles assigned along with Azure Policies and Initiatives.
  • You can actively control access, policies, and compliance for more than one subscriptions with ease. All subscription objects within a Management group receive a copy of the role-based access control and policy settings applied to the Management group.
  • Management group can contain other Management groups or subscriptions, but it cannot contain an Azure Resource.
  • Management groups and subscriptions can only support one parent.
  • Management group trees can support up to six levels of depth, not including the root level or the subscription level.
  • All subscriptions and Management groups within a hierarchy share a common directory.
  • Management groups reside within a tenant and cannot contain subscriptions of different tenants.
  • A single directory can have up to 10,000 Management groups.

Root Management group

  • All Management groups in the Azure AD are under the root Management group.
  • Root Management group cannot be moved or deleted.
  • You can only have one root Management group.

Best Practices

  • Create separate Subscriptions/Management groups for each Customer.
  • Create separate Subscriptions/Management groups for each Project.
  • Create separate Subscriptions for different Environments (e.g. Dev, Stage, Prod).
  • Create separate Subscriptions for all the various Departments with independent roles and access to all the users.


Organize your resources with management groups - Azure Governance - Azure governance
Learn about the management groups, how their permissions work, and how to use them.
Quickstart: Create a management group with portal - Azure governance
In this quickstart, you use Azure portal to create a management group to organize your resources into a resource hierarchy.

Varun Saklani - Azure Role based access control (RBAC) -  Link

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