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Asset classification is the process of organizing your Azure resources based on their importance and sensitivity. You do this primarily by defining and assigning tags to resources like virtual machines and storage accounts. To manage this at scale, you use Azure Policy to create initiatives that automatically enforce tagging rules across your entire environment or within specific management groups. This classification is the foundation for applying the correct security controls, as it allows you to treat high-value assets differently from less critical ones.
You cannot secure what you do not know exists. Asset discovery is the automated process of finding and cataloging all resources in your Azure subscriptions. You enable this by turning on Microsoft Defender for Cloud and configuring its data collection agents. Once enabled, Defender for Cloud continuously scans your environment, discovering new resources as they are created and inventorying existing ones. This discovery data is critical for understanding your attack surface and ensuring no resource is left unmonitored.
After classifying and discovering assets, you must ensure they remain in a secure and compliant state. Azure Policy is used to define the security baselines and compliance rules, such as requiring encryption on all disks. These policies continuously evaluate your resources; if a resource becomes non-compliant, the policy can trigger an alert or even automatically remediate the issue using a "deploy if not exists" effect. Microsoft Defender for Cloud consolidates these findings into security recommendations, providing a prioritized list of actions to harden your environment.
For a complete security operations workflow, you integrate these tools with Microsoft Sentinel, Azure's Security Information and Event Management (SIEM) system. Defender for Cloud can stream its security alerts and recommendations directly to Sentinel. This allows security analysts to correlate asset compliance data with other threat signals, create automated playbooks for remediation, and maintain a single pane of glass for investigating incidents. This integration closes the loop, transforming static compliance checks into a dynamic, continuous monitoring and response system.
A system architecture flowchart showing how Azure Policy, Microsoft Defender for Cloud, and Microsoft Sentinel integrate to classify, discover, monitor, and remediate asset security risks.
Prepare and test your skills

Prepare and test your skills

Asset classification is the process of organizing Azure resources by importance and sensitivity using tags. Azure Policy initiatives enforce tagging rules automatically across an entire environment or within specific management groups, which provides the foundation for applying appropriate security controls.
Asset discovery is the automated process of finding and cataloging all resources in Azure subscriptions. Enabling Microsoft Defender for Cloud and configuring its data collection agents makes it continuously scan the environment, discover new resources as they are created, and inventory existing ones.
Azure Policy defines security baselines and compliance rules, such as requiring encryption on all disks. It continuously evaluates resources and can trigger an alert or automatically remediate non-compliance using a "deploy if not exists" effect, while Microsoft Defender for Cloud consolidates the findings into prioritized security recommendations.
Microsoft Defender for Cloud streams its security alerts and recommendations directly to Microsoft Sentinel, Azure's Security Information and Event Management (SIEM) system. This lets security analysts correlate asset compliance data with other threat signals, create automated playbooks for remediation, and maintain a single pane of glass for incident investigation.