Azure Resource Governance Hierarchy

To design governance in Azure, you first map your organization's structure into a logical hierarchy. You analyze departments, projects, and environments (like production or development) to decide how they fit into management groups and subscriptions. Management groups act as containers above subscriptions, allowing you to apply policies and permissions across many subscriptions at once. Subscriptions are the fundamental units for billing and resource limits. Inside subscriptions, you use resource groups to isolate specific workloads and provide a scope for applying policies.