Courseiva
Implement Azure securitymediumMultiple ChoiceObjective-mapped

AZ-204 Implement Azure security Practice Question

You are developing an Azure Function that processes messages from an Azure Service Bus queue. The function must use a managed identity to authenticate to the Service Bus to avoid managing secrets. Which configuration step is essential for this setup?

⚠ Common exam trap

Test-takers frequently think storing secrets in Key Vault (Option B) is sufficient for secretless authentication, but Key Vault references still involve retrieving a secret at runtime, whereas managed identity completely removes the need for any secret.

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

Enable system-assigned managed identity on the function app and assign the 'Azure Service Bus Data Receiver' role to the identity

Using a managed identity eliminates the need to manage secrets or connection strings. By enabling a system-assigned managed identity on the function app and assigning the 'Azure Service Bus Data Receiver' role to that identity, the function can authenticate to Azure Service Bus via Azure AD (OAuth 2.0) without any stored credentials. This is the recommended approach for secure, secretless authentication in Azure Functions.

Answer analysis

Option-by-option breakdown

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

  • Store the Service Bus connection string in the function app settings

    Why it's wrong here

    Storing the Service Bus connection string directly in the function app settings is a significant security vulnerability. This method embeds sensitive credentials directly into the application configuration, making them susceptible to exposure if the application settings are ever compromised or improperly accessed. It completely bypasses best practices for secure secret management and rotation, increasing the risk of unauthorized access to the Service Bus namespace.

  • Create a Key Vault reference to the connection string

    Why it's wrong here

    While Azure Key Vault is a robust solution for securely storing secrets, creating a Key Vault reference to a connection string still involves managing a secret, albeit in a more secure location. The function app would still need permissions to access Key Vault, which ideally would be granted via a Managed Identity. However, the connection string itself remains a secret that requires lifecycle management, rotation, and careful access control within Key Vault, which is less ideal than direct authentication.

  • Enable system-assigned managed identity on the function app and assign the 'Azure Service Bus Data Receiver' role to the identity

    Why this is correct

    Enabling a system-assigned managed identity on the function app and assigning the 'Azure Service Bus Data Receiver' role is the most secure and recommended approach. This method allows the Azure Function to authenticate directly with Azure Active Directory (Azure AD) and subsequently authorize against Azure Service Bus without needing any connection strings, keys, or secrets stored within the function app or Key Vault. Azure automatically manages the identity's lifecycle, eliminating the burden of credential management and rotation for developers.

  • Use the Service Bus SDK with a SharedAccessSignatureToken

    Why it's wrong here

    Using the Service Bus SDK with a SharedAccessSignatureToken (SAS token) requires generating, storing, and managing a secret. Although SAS tokens offer granular control over permissions and have an expiry, they are still credentials that must be securely handled, rotated before expiration, and protected from unauthorized disclosure. This approach introduces operational overhead and potential security risks if the tokens are compromised or not managed diligently, unlike the secret-less authentication provided by Managed Identities.

Quick reference

Cloud Service Model Comparison

ModelYou ManageProvider ManagesExamples
IaaSOS, runtime, apps, dataHardware, hypervisor, networkingEC2, Azure VMs, GCP Compute Engine
PaaSApps and dataOS, runtime, middleware, hardwareElastic Beanstalk, Azure App Service
SaaSData and settings onlyEverything elseMicrosoft 365, Salesforce, Workday
FaaS / ServerlessFunction code onlyInfra, scaling, runtimeLambda, Azure Functions, Cloud Run
CaaSContainers and appsKubernetes, OS, hardwareEKS, AKS, GKE

Go deeper

Related to this question

About these practice questions

One of 881 original AZ-204 practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →

How Courseiva writes practice questions · Editorial policy

JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This AZ-204 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-204 exam.