How to Set Up Conditional Access Policies Easily in Microsoft 365: A Step-by-Step Guide

Jazzy Singh
5 days ago
3 min read

Managing access and securing sensitive data across your Microsoft 365 environment is a top priority for businesses today. One of the most effective tools at your disposal for safeguarding user access is Conditional Access. This powerful feature allows IT admins to control how and when users can access Microsoft 365 services based on specific conditions.

In this guide, we’ll walk you through how to setup conditional access policies easily in Microsoft 365. Whether you're protecting data on unmanaged devices, securing remote worker access, or reducing attack surfaces, conditional access is your first line of defense.

What is Conditional Access in Microsoft 365?

Conditional Access is a part of Microsoft's identity-driven security framework. It allows organisations to implement automated access control decisions for accessing cloud apps based on real-time conditions such as user location, device compliance, sign-in risk, and more. These policies are enforced through Azure Active Directory (Azure AD), which underpins Microsoft 365 authentication and identity management.

For example, you might configure a policy that blocks access to SharePoint Online if the request comes from an untrusted country or mandate Multi-Factor Authentication (MFA) when accessing email outside business hours.

Prerequisites for Using Conditional Access

Before diving into the steps, make sure your organisation meets the following prerequisites:

An active Microsoft 365 subscription with Azure AD Premium P1 or P2 license
Administrator access to Microsoft Entra (formerly Azure AD)
Defined security and compliance requirements (what you want to protect and why)

Step-by-Step: How to Setup Conditional Access Policies Easily

Step 1: Access Microsoft Entra Admin Center

1. Go to the Microsoft Entra admin center. 2. Navigate to Protection > Conditional Access.

Step 2: Create a New Conditional Access Policy

1. Click on + New policy. 2. Give your policy a meaningful name (e.g., “Block Legacy Authentication”). 3. Under Assignments, define the users or groups this policy will apply to.

Step 3: Choose Cloud Apps or Actions

1. Under Cloud apps or actions, select apps you want the policy to affect (e.g., Exchange Online, SharePoint, Teams). 2. You can also choose to apply the policy to all cloud apps.

Illustration of Microsoft Entra Admin Center showing Conditional Access policy setup screen

Step 4: Set the Conditions

Now define when the policy will apply:

Sign-in Risk: Trigger policies based on low, medium, or high-risk sign-ins.
Device Platforms: Target specific operating systems (Windows, Android, iOS).
Locations: Include or exclude locations based on IP ranges.
Client Apps: Apply rules specific to browser, mobile, or desktop clients.

Step 5: Configure Access Controls

Based on the conditions, determine what controls to enforce:

Grant access: Allow access if conditions are met.
Require MFA: Enforce multi-factor authentication.
Require device to be marked as compliant: Ensure devices are registered and compliant in Microsoft Intune.
Block access: Deny access outright under specified conditions.

Step 6: Enable or Report-Only Mode

Before enforcing a new policy, it’s a best practice to test it first:

Report-only mode: See how the policy would behave without impacting users.
On: Activate the policy when you're confident in its operation.

Step 7: Review and Create

Click on Create to finalise the policy. Immediately monitor sign-in logs to observe how the policy is applied and adjust as necessary.

Best Practices for Conditional Access in Microsoft 365

Start with a Zero Trust mindset: Assume breach and verify explicitly.
Use named locations judiciously: Not all IP addresses are trustworthy by default.
Utilise report-only mode: Test policies before enforcing to avoid accidental lockouts.
Avoid blanket exclusions: Cycles of exception handling can create security loopholes.
Document your policies: Maintain clarity for audits and future reviews.

Flowchart showing Microsoft Conditional Access decision tree including risk checks and access controls

Common Use Cases for Conditional Access

Require MFA for admins: Strengthen administrative access points.
Block legacy authentication: Disable older, less secure protocols.
Restrict access to compliant devices only: Enforce endpoint hygiene using Intune.
Restrict geographic access: Control data access based on geo-location.

Monitoring and Troubleshooting

Once your policies are in place, head to Entra admin center > Sign-ins to monitor authentication behaviours. You’ll see if the conditional access rules are triggered and can troubleshoot failed sign-ins from here.

Use the built-in tools like What If to simulate user conditions and validate that your policy logic behaves as expected.

Final Thoughts

Knowing how to setup conditional access policies easily in Microsoft 365 empowers your IT team to protect identities, devices, and data. With these granular, rule-based policies, you can confidently secure your Microsoft environment against today’s evolving threats.

Need help developing a future-proof access management strategy? Our experts at Circuit Minds are here to assist.

👉 Book a free consultation to learn how Circuit Minds can help you.