Connect to and consume Azure services and third-party services →mediumMultiple ChoiceObjective-mapped
AZ-204 Practice Question: Connect to and consume Azure services and third-party services
You are using Azure Logic Apps to integrate with a third-party CRM. The CRM API requires OAuth 2.0 authentication with a client secret. The secret must be stored securely and rotated automatically. What should you do?
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
✓
Store the secret in Azure Key Vault and use a managed identity to access it
The CRM API requires OAuth 2.0 with a client secret, so the secret must be stored securely and support automatic rotation. Azure Key Vault is the appropriate service for storing secrets, and using a managed identity allows secure access without hardcoding credentials. Option A is incorrect because a managed identity alone does not store the secret; the secret must be kept in a vault. Option C is wrong because storing secrets directly in a Logic App definition is insecure and does not support rotation. Option D is wrong because Azure App Configuration is designed for application settings, not secrets; it lacks automatic secret rotation capabilities.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Use a system-assigned managed identity without storing the secret
Why it's wrong here
Incorrect. A system-assigned managed identity authenticates the Logic App to Azure services but does not store the third-party client secret. The secret must be stored separately in a secure vault.
- ✓
Store the secret in Azure Key Vault and use a managed identity to access it
Why this is correct
Correct. Store the client secret in Azure Key Vault, which provides secure storage and automatic rotation. Use a managed identity to allow the Logic App to retrieve the secret securely.
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Store the secret in the Logic App definition as a string parameter
Why it's wrong here
Incorrect. Storing the secret as a string in the Logic App definition exposes it in plaintext and does not enable automatic rotation; this is insecure and violates best practices.
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Store the secret in Azure App Configuration with encryption
Why it's wrong here
Incorrect. Azure App Configuration can encrypt data at rest but is not designed for secret management; it lacks built-in secret rotation capabilities, whereas Key Vault is optimized for this purpose.
Go deeper
Related to this question
Learn chapter
Azure Functions Development
Key term
Key Vault Secrets
Key Vault Secrets are secure containers in Microsoft Azure that store sensitive information like passwords, connection strings, and API keys, keeping them encrypted and accessible only to authorized applications and users.
Key term
Managed identity
A managed identity is an automatically managed service principal in Azure that allows your code to authenticate to any service that supports Azure AD authentication without storing credentials.
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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.