The answer is to set the authorization level to 'Function' or 'Admin', use Azure AD authentication, and implement managed identity. These three actions work together to protect Azure Functions without hard-coding secrets: managed identity eliminates the need for keys or connection strings in code by securely obtaining tokens from Azure AD, while Azure AD authentication validates that only authenticated callers can invoke the function, and function-level authorization keys add an extra layer of access control. On the Microsoft Cybersecurity Architect exam, this scenario tests your understanding of defense-in-depth for serverless compute, often appearing as a multi-select question where you must distinguish between caller authentication (Azure AD) and code identity (managed identity). A common trap is confusing connection strings or client certificates with proper caller authentication—remember, connection strings are for data stores, not callers. Memory tip: "MAD" for Managed identity, Azure AD, and authorization level (Function/Admin) secures the function triad.
SC-100 Practice Question: Design security solutions for applications and data
This SC-100 practice question tests your understanding of design security solutions for applications and data. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company is designing a solution to protect Azure Functions that process sensitive data. They need to ensure that only authenticated and authorized callers can invoke the function, and that secrets are not hard-coded. Which THREE actions should they take?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Use managed identity to access Azure Key Vault for secrets
Option A is correct because using managed identity eliminates secrets in code. Option C is correct because Azure AD authentication validates tokens from callers. Option D is correct because function-level authorization keys (like 'Function' or 'Admin') provide an additional layer. Option B is wrong because connection strings are not for authentication of callers. Option E is wrong because client certificates are not the primary method for caller authentication in Azure Functions; managed identity and Azure AD are preferred.
Key principle: Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access.
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 connection strings in application settings
Why it's wrong here
Connection strings are secrets themselves; they should be stored in Key Vault, not in settings.
✗
Require client certificates
Why it's wrong here
Client certificates can be used but are not the recommended primary method; Azure AD tokens are more scalable.
✓
Use managed identity to access Azure Key Vault for secrets
Why this is correct
Managed identity allows the function to securely retrieve secrets without storing credentials.
Related concept
Authentication checks who the user is.
✓
Enable Azure AD authentication for the function app
Why this is correct
Azure AD authentication ensures only authenticated callers with valid tokens can invoke the function.
Related concept
Authentication checks who the user is.
✓
Set authorization level to 'Function' or 'Admin'
Why this is correct
Function-level authorization requires a key in the request, providing additional security.
Related concept
Authentication checks who the user is.
Common exam traps
Common exam trap: authentication is not authorization
Logging in proves the user can authenticate. It does not automatically mean the user is allowed to enter privileged or configuration mode. Watch for AAA authorization, privilege level and command authorization details.
Detailed technical explanation
How to think about this question
This kind of question is testing the difference between identity and permission. A user may successfully log in to a router because authentication is working, but still fail to enter configuration mode because authorization is missing, misconfigured or mapped to a lower privilege level.
KKey Concepts to Remember
Authentication checks who the user is.
Authorization controls what the user is allowed to do after login.
Privilege levels affect access to EXEC and configuration commands.
AAA, TACACS+ and RADIUS can separate login success from command access.
TExam Day Tips
→Do not assume successful login means full administrative access.
→Look for words such as cannot enter configuration mode, privilege level, authorization or command access.
→Separate login problems from permission problems before choosing the answer.
Key takeaway
Authentication proves identity; authorization controls what that identity can do after login. Both must work for full privileged access.
Real-world example
How this comes up in practice
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this SC-100 question in full detail.
Review Cisco AAA concepts — authentication, authorization, and accounting. Study privilege levels (0–15), command authorization under TACACS+, and how RADIUS differs. Then practise related SC-100 questions on access control and AAA configuration.
Design security solutions for applications and data — This question tests Design security solutions for applications and data — Authentication checks who the user is..
What is the correct answer to this question?
The correct answer is: Use managed identity to access Azure Key Vault for secrets — Option A is correct because using managed identity eliminates secrets in code. Option C is correct because Azure AD authentication validates tokens from callers. Option D is correct because function-level authorization keys (like 'Function' or 'Admin') provide an additional layer. Option B is wrong because connection strings are not for authentication of callers. Option E is wrong because client certificates are not the primary method for caller authentication in Azure Functions; managed identity and Azure AD are preferred.
What should I do if I get this SC-100 question wrong?
Review Cisco AAA concepts — authentication, authorization, and accounting. Study privilege levels (0–15), command authorization under TACACS+, and how RADIUS differs. Then practise related SC-100 questions on access control and AAA configuration.
What is the key concept behind this question?
Authentication checks who the user is.
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