Assign policy definitions from Azure landing zones Terraform module

A little while back I spent an hour or so writing an Azure policy, only to discover that the Azure landing zones Terraform module already has a policy definition that does exactly what I wanted to accomplish, but no assignments linked to it. It took me another hour of confusion and frustration to figure out how to actually assign the policy, as there is a step I completely overlooked. So here is a quick summary of how to use these policies so you can save yourself the trouble.

Set the library_path

First off we need to make sure the [library_path}(https://github.com/Azure/terraform-azurerm-caf-enterprise-scale/wiki/%5BUser-Guide%5D-Module-Variables) variable is set to make sure the Azure landing zones-module can find our customizations. This is a requirement for adding custom landing zone archetypes, policy definitions, policy assignments etc.

First, create a new folder named lib in the root of your Terraform project. Then, in the main.tf-file, add the following line to your module block:

1module "azure_landing_zones_architecture" {
2    source = "Azure/caf-enterprise_scale/azurerm"
3    version = "3.1.2"
4    library_path = "${path.root}/lib"
5}

Create the policy assignment

Under the lib-folder, create a new folder named policy_assignments and add a new file named policy_assignment_<name of policy>.tf. The Azure landing zones-module will pick up all files prefixed with policy_assignment_, but the rest of the name is only important for your own mental health. Name if something useful and related to what the policy does.

In the example below I use the Deny vNet peering to non-approved vNets-policy to only allow spoke networks to peer with the hub network. You can see a complete list of policy definitions in GitHub

 1{
 2    "name": "Restrict_VNet_Peering",
 3    "type": "Microsoft.Authorization/policyAssignments",
 4    "apiVersion": "2019-09-01",
 5    "properties": {
 6        "description": "This policy denies the creation of vNet Peerings to non-approved vNets under the assigned scope",
 7        "displayName": "Deny vNet peering to non-approved vNets",
 8        "notScopes": [],
 9        "parameters": {
10        } ,
11        "policyDefinitionId": "${root_scope_resource_id}/providers/Microsoft.Authorization/policyDefinitions/Deny-VNET-Peering-To-Non-Approved-VNETs",
12        "scope": "${current_scope_resource_id}",
13        "enforcementMode": null,
14        "nonComplianceMessages": [
15        {
16            "message": "VNet peering to non-approved vNets is not allowed"
17        }
18        ]
19    },
20    "location": "${default_location}",
21    "identity": {
22        "type": "SystemAssigned"
23    }
24}

The important lines to change from my example are highlighted in the code block:

Assign the policy

Finally, we need to actually assign the policy to a management group. We have two different options to achieve this:

1. We can extend a built in archetype definition (e.g. “corp” or “online”)
2. We can create a custom landing zone archetype

In the example below I use the second option and create my own custom landing zone. You can follow the link to get a complete example on how this is created. The only difference from that example is the policy assignment in lib/archetype_definition_customer_online.json:

 1{
 2    "customer_online": {
 3      "policy_assignments": ["Restrict_VNet_Peering"],
 4      "policy_definitions": [],
 5      "policy_set_definitions": [],
 6      "role_definitions": [],
 7      "archetype_config": {
 8        "parameters": {
 9        },
10        "access_control": {}
11      }
12    }
13  }

We also have two different options for setting the policy parameters (i.e. the list of allowed virtual networks):

Create the list directly in our archetype definition/extension file:

1"parameters": {
2    "allowedVnets": {
3        "value": [
4            "/subscriptions/00000000-0000-0000-0000-000000000000/resourceGroups/rg-hub/providers/Microsoft.Network/virtualNetworks/vnet-hub"
5        ]
6    }
7}

Pass in the parameters in the terraform module:

 1archetype_config = {
 2    archetype_id = "customer_online"
 3    parameters = {
 4        Restrict_VNet_Peering = {
 5            allowedVnets = [
 6                data.azurerm_virtual_network.hub.id
 7            ]
 8        }
 9    }
10}

I prefer the second method, as it gives me a nice and clean method of dynamically getting the resource ID by using Data Source: azurerm_virtual_network