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Manage Azure Identities and GovernancemediumMultiple ChoiceObjective-mapped

AZ-104 Manage Azure Identities and Governance Practice Question

A developer has the Contributor role on a subscription. Their ARM deployment of a virtual machine with a public IP fails, and the error message says the request is denied by policy. The developer can create other resources successfully. What should you change to allow this deployment while keeping the Contributor role unchanged?

⚠ Common exam trap

Test-takers frequently confuse Azure Policy with RBAC or resource locks, assuming that a permission issue (like needing Owner) or a lock is the cause, when in fact policy enforcement is a separate governance layer that can deny deployments even with sufficient RBAC permissions.

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Modify or exempt the Azure Policy assignment that blocks public IP addresses.

The error indicates that an Azure Policy is denying the deployment of a virtual machine with a public IP address. Since the developer has the Contributor role, they have sufficient permissions to create resources, but Azure Policy overrides permissions by enforcing rules. Modifying or creating an exemption for the specific policy that blocks public IP addresses will allow the deployment without changing the developer's role.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Assign the developer the Owner role on the subscription.

    Why it's wrong here

    Assigning the Owner role grants complete control over all resources, but Azure Policy deny effects take precedence over any RBAC role assignment, including Owner. The deny action is evaluated during resource creation and will block the operation even for the subscription administrator unless the policy is changed or an exemption is granted. Owner-level permissions also carry security risks and do not address the underlying governance requirement. The only way to proceed is to modify or exempt the specific policy that denies public IP addresses.

    When this WOULD be correct

    Assigning the Owner role would be correct if the developer needs to modify role assignments or policy definitions themselves, or if the deployment fails due to missing permissions that only Owner can grant, such as registering resource providers.

  • Modify or exempt the Azure Policy assignment that blocks public IP addresses.

    Why this is correct

    The error message indicates the deployment was denied by an Azure Policy assignment, not by a lack of RBAC permissions. Modifying the policy assignment (e.g., changing the effect from 'Deny' to 'Audit' or removing the assignment) directly removes the obstacle. Alternatively, an exemption on the specific scope can allow the public IP to be created while keeping the policy for compliance governance. This is the only option that addresses the root cause while preserving the developer's Contributor role.

  • Remove any lock from the virtual machine's resource group.

    Why it's wrong here

    Resource locks, such as CanNotDelete or ReadOnly, are designed to prevent accidental deletion or modification of critical resources, and they generate a lock-specific error like 'ScopeLocked' or 'The resource is locked'. The deployment failure explicitly states the request is denied by policy, so a lock is not the cause. Additionally, a lock on the resource group does not block creating a new public IP address; it would block operations on existing resources. Removing a lock would therefore have no effect on the policy denial.

  • Move the virtual machine to another management group.

    Why it's wrong here

    Moving the virtual machine to another management group only changes the scope from which policies are inherited. If the deny policy is assigned at a subscription or resource group level, the move to a different management group won't alter the effective policy on the destination resource group. Even if the new management group has no such policy, the original deployment that failed still targeted a scope where the deny applied, and the deployment needs to be re-run in a cleared scope. This option addresses the symptom of resource location, not the policy rule itself.

    When this WOULD be correct

    If the question stated that the subscription is under a management group with a policy that blocks public IPs, and the developer needs to deploy in a different management group without that policy, then moving the VM (or deploying in a different management group) would be correct. This scenario would require the developer to have permissions to create resources in the target management group.

Option-by-option analysis

Why each answer is right or wrong

Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The AZ-104 exam frequently reuses these exact scenarios with slightly different constraints.

Modify or exempt the Azure Policy assignment that blocks public IP addresses.Correct answer

Why this is correct

The error message indicates the deployment was denied by an Azure Policy assignment, not by a lack of RBAC permissions. Modifying the policy assignment (e.g., changing the effect from 'Deny' to 'Audit' or removing the assignment) directly removes the obstacle. Alternatively, an exemption on the specific scope can allow the public IP to be created while keeping the policy for compliance governance. This is the only option that addresses the root cause while preserving the developer's Contributor role.

Assign the developer the Owner role on the subscription.Wrong answer — click to see why

Why this is wrong here

The error is caused by an Azure Policy denying public IP creation, not by a lack of permissions. Assigning Owner would grant more privileges than needed and violates the constraint to keep the Contributor role unchanged.

★ When this WOULD be the correct answer

Assigning the Owner role would be correct if the developer needs to modify role assignments or policy definitions themselves, or if the deployment fails due to missing permissions that only Owner can grant, such as registering resource providers.

Why candidates choose this

Candidates may think that increasing permissions to Owner will bypass any restrictions, not realizing that Azure Policies can override role-based permissions.

Move the virtual machine to another management group.Wrong answer — click to see why

Why this is wrong here

Moving the VM to another management group does not bypass Azure Policy assignments, which are inherited from management groups. The policy blocking public IPs would still apply in the new management group unless that group has a different policy exemption.

★ When this WOULD be the correct answer

If the question stated that the subscription is under a management group with a policy that blocks public IPs, and the developer needs to deploy in a different management group without that policy, then moving the VM (or deploying in a different management group) would be correct. This scenario would require the developer to have permissions to create resources in the target management group.

Why candidates choose this

Candidates may think that moving to a different management group avoids restrictive policies, but they forget that policies are inherited and the new group might have the same or other policies. They also overlook that the error is specifically about a policy, not about management group restrictions.

Analysis generated from the official AZ-104blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”

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Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This AZ-104 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-104 exam.