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Conditional Access: Require MFA Outside Corporate Network

A company is using Azure Active Directory (Azure AD) for identity management. They want to implement a policy that requires all users to use multi-factor authentication (MFA) when accessing Office 365 from outside the corporate network. Which conditional access policy setting should they configure?

Quick Answer

The answer is the Locations condition under Assignments > Conditions. This setting allows administrators to define trusted named locations, such as corporate IP ranges, and then require multi-factor authentication when access originates from any location that is not trusted. By configuring a policy that targets all users and Office 365 as the cloud app, and setting the Locations condition to exclude the corporate network, the policy enforces MFA for every external access attempt, directly meeting the requirement to require MFA outside the corporate network. On the Microsoft Cybersecurity Architect exam, this tests your understanding of how Conditional Access policies use location-based controls to enforce security boundaries, often appearing as a scenario where you must distinguish between user risk, device compliance, and location conditions. A common trap is confusing Locations with Sign-in risk or device state; remember that Locations is purely about geographic or IP-based trust. Memory tip: “Location locks the door—risk and device are for the guard inside.”

⚠ Common exam trap

A common mix-up: candidates confuse the Locations condition with the Sign-in risk condition, thinking that external access is inherently risky, but the question specifically asks for a policy based on network location, not risk level.

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

Assignments > Conditions > Locations

The Locations condition in Azure AD Conditional Access allows administrators to define named locations (such as corporate IP ranges) and then require MFA when access originates from any location that is not trusted. By configuring a policy that targets 'All users' and 'All cloud apps' (or specifically Office 365), and setting the Locations condition to 'Any location' with the exclusion of the corporate network, the policy enforces MFA for all external access attempts. This directly meets the requirement to require MFA when accessing Office 365 from outside the corporate network.

Answer analysis

Option-by-option breakdown

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

  • Assignments > Conditions > Client apps

    Why it's wrong here

    Client apps target app types, not location.

  • Assignments > Conditions > Locations

    Why this is correct

    Location condition can be used to enforce MFA for external networks.

  • Assignments > Conditions > Device platforms

    Why it's wrong here

    Device platforms target OS types, not location.

  • Assignments > Conditions > Sign-in risk

    Why it's wrong here

    Sign-in risk targets risk level, not location.

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Same concept, more angles

1 more way this is tested on SC-100

These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.

Variation 1. Refer to the exhibit. A security architect reviews the Azure AD Conditional Access policy JSON. The policy is intended to require MFA for all users accessing Azure management (Microsoft Azure Management app ID 797f4846-ba77-4853-9e6f-4433c3e1d1c5), except for the BreakGlassAdmin account and from trusted locations. However, some users report being prompted for MFA even when connecting from the corporate office (which is marked as a trusted location). What is the most likely cause?

hard
  • A.The corporate office location is not correctly defined as a trusted location in Azure AD
  • B.The grant controls operator is set to 'OR' instead of 'AND'
  • C.The policy is in 'Report-only' mode
  • D.The policy applies to all cloud apps, not just Azure management

Why A: The policy is designed to require MFA for all users accessing Azure management, except for the BreakGlassAdmin account and from trusted locations. If the corporate office location is not correctly defined as a trusted location in Azure AD, the Conditional Access policy will not recognize it as an exception, and users connecting from that location will still be prompted for MFA. This mismatch between the intended trusted location definition and the actual location configuration is the most likely cause of the unexpected MFA prompts.

JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This SC-100 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 SC-100 exam.