Tutorial / Cram Notes

Managing external collaboration settings in Azure Active Directory (Azure AD) is an important task for identity and access administrators, especially those preparing for the SC-300 Microsoft Identity and Access Administrator exam. The Azure AD external collaboration settings allow administrators to control how users within the organization can work with external partners and contractors, including which external users can be invited to access company resources and how they can authenticate.

Understanding External Collaboration in Azure AD

Azure AD offers several mechanisms to collaborate with users from outside your organization (also known as guests or external users). This can include users from other Azure AD organizations, consumers with Microsoft Accounts (MSAs), users with social identities (like Google IDs), or users without any form of existing digital identity.

How to Configure External Collaboration Settings

To configure external collaboration settings in Azure Active Directory, you need to:

  1. Sign in to the Azure portal.
  2. Navigate to Azure Active Directory > External Identities.
  3. Select External collaboration settings.

From here, you can manage the following settings:

Collaboration Options

  • Guest user permissions are limited: Decide if the guest users will have limited permissions within the directory.
  • Members can invite: Control if members of your organization can invite guest users.
  • Guests can invite: Control if guest users can invite other guests.
  • Admins and users in the guest inviter role can invite: Ensure only admins and users with the “Guest Inviter” role can send invitations.
  • Enable Email One-Time Passcode for guests (Preview): Use one-time passcodes for guests who do not have Microsoft or Azure AD accounts.

Invite Settings

  • Require an invitation to redeem: Guests must use their invitations before they can access resources.
  • Set guest expiration (Preview): Specify a deadline after which guest access will expire.
  • Allow invitations to be sent to any domain (most inclusive): Control which domains are allowed or blocked when sending invitations.

Email One-Time Passcode for Guests

When guests do not have Microsoft accounts or their organizations are not using Azure AD, they can use a temporary passcode sent to their email to access shared resources. You can enable this feature via the Azure portal under the “Email one-time passcode for guests” section.

Default User Settings

The default settings apply to all types of external users in the Azure AD organization. You can set defaults such as:

  • Guest users’ access type (limited or unrestricted): Define the baseline permissions.
  • Guest user invitation settings: Control the various aspects of the invitation process.

Controlling Access by Domain

Azure AD allows to set up ‘Allow’ or ‘Block’ lists for domains. This way, admins can specify exactly which domains are permitted to collaborate with their Azure AD instance.

Example:

Setting Domain Action
Allow invitations to be sent to example.com Allowed
Block invitations to be sent to competitor.com Blocked

To manage these settings:

  1. Under Collaboration restrictions, choose “Allow invitations only to the specified domains” to permit only certain domains, or “Deny invitations to the specified domains” to block specific domains.

Monitoring and Auditing External Collaboration

Azure AD offers comprehensive auditing and reporting tools. To monitor external collaboration, you use the Azure AD audit logs:

  1. Navigate to Azure Active Directory > Monitoring > Audit logs.

Here you can filter the logs to monitor activities such as invitation acceptances, access by external users, changes in permissions, and more.

Access Reviews

For maintaining secure access, Azure AD provides access reviews. This lets you periodically review guest users’ access to ensure it’s still required and appropriate.

  1. Navigate to Azure Active Directory > Identity Governance > Access reviews.

You can create new access reviews for guests and define reviewers, frequency, and the behavior upon review completion (e.g., remove access, approve for more time).

Compliance with Company Policy

It’s crucial that any configuration for external collaboration aligns with your organization’s broader security and data governance policies. Regularly review and adjust these settings to remain compliant with internal policies and regulatory requirements.

Conclusion

Managing external collaboration settings in Azure AD is crucial for securing your organization’s resources. By carefully setting permissions, controlling access by domain, auditing activities, and conducting access reviews, organizations can collaborate with external users securely and efficiently. As an identity and access administrator preparing for the SC-300 exam, mastering these settings is an essential part of your role in managing, implementing, and monitoring identity and access within Azure AD.

Practice Test with Explanation

True or False: In Azure AD, external users can be added to your directory as Guests through the Azure AD B2B collaboration feature.

  • True
  • False

Answer: True

Explanation: Azure AD B2B collaboration feature allows you to add external users as Guests, providing them with various levels of access to your organization’s resources.

Which of the following external collaboration settings is available in Azure AD to control how users invite guests?

  • Only administrators can invite guests.
  • Guests can invite other guests.
  • Members can invite guests.
  • All of the above.

Answer: All of the above.

Explanation: Azure AD provides settings to control who can invite guests, including allowing only administrators, permitting guests to invite other guests, or allowing members to invite guests.

True or False: External collaboration settings in Azure AD can be enforced at the organization level only, and not on a per-user basis.

  • True
  • False

Answer: False

Explanation: External collaboration settings in Azure AD can generally be enforced on a global level, but you can also apply more granular controls for specific users or groups using Conditional Access policies.

What Azure AD feature must be configured to allow users from a trusted partner organization to access your resources without requiring a separate user account?

  • Azure AD B2B
  • Azure AD B2C
  • Azure AD Direct Connect
  • Azure AD Tenant Restrictions

Answer: Azure AD B2B

Explanation: Azure AD B2B (Business to Business) allows users from trusted partner organizations to access resources without needing a separate user account in your directory.

True or False: An Azure AD administrator needs to approve every B2B collaboration invitation before the guest user can access resources.

  • True
  • False

Answer: False

Explanation: Approval from an Azure AD administrator for each B2B collaboration invitation is not mandatory; this is configurable based on the organization’s external collaboration policies.

Which PowerShell cmdlet can be used to configure external collaboration settings in Azure AD?

  • Set-MsolCompanyInformation
  • Set-MsolDirSyncFeatures
  • Set-MsolUser
  • Set-AzureADTenantDetail

Answer: Set-AzureADTenantDetail

Explanation: The cmdlet Set-AzureADTenantDetail is used to configure Azure AD tenant properties, including external collaboration settings.

True or False: You can use Azure AD to create a custom invitation message that is sent to all invited guest users.

  • True
  • False

Answer: True

Explanation: Azure AD allows you to create a custom invitation message template that will be sent to all invited guest users.

Which of the following are valid restrictions that can be applied to guest users in Azure AD? (Select all that apply)

  • Prevent guest users from accessing all Azure AD resources.
  • Limit guest access to specific applications.
  • Enforce Multi-Factor Authentication for guest users.
  • Restrict guest users from creating Azure AD groups.

Answer: Limit guest access to specific applications, Enforce Multi-Factor Authentication for guest users.

Explanation: You can limit guest user access to specific applications and enforce MFA for guest users. Preventing guests from accessing all Azure AD resources or restricting them from creating groups is not done through external collaboration settings but through other configurations and policies.

True or False: External collaboration in Azure AD is designed to work with users from any organization, regardless of whether they use Azure AD.

  • True
  • False

Answer: True

Explanation: Azure AD external collaboration is designed to allow users from other organizations to collaborate, even if they do not use Azure AD. They can be invited using any email address.

To allow only users from specific organizations to be invited as guests, what feature should you configure in Azure AD?

  • Conditional Access policies
  • Organization relationships
  • Cross-tenant access settings
  • Identity Protection policies

Answer: Cross-tenant access settings

Explanation: Cross-tenant access settings enable you to define trust relationships with other organizations, allowing only users from those specific organizations to be invited as guests.

True or False: It is possible to audit and review the invitations sent to external users within the Azure AD audit logs.

  • True
  • False

Answer: True

Explanation: Azure AD provides audit logs where you can review the invitation history and other details about invitations sent to external users.

What Azure service must you use to restrict access to SharePoint Online and OneDrive for Business content for external users?

  • Azure AD Conditional Access
  • SharePoint Online external sharing settings
  • OneDrive for Business external sharing settings
  • All of the above

Answer: All of the above

Explanation: To restrict access to SharePoint and OneDrive for Business content for external users, you need to configure the external sharing settings specific to those services, as well as potentially use Azure AD Conditional Access policies to provide layered protection and control.

Interview Questions

What is external collaboration in Azure AD?

External collaboration in Azure AD refers to the process of providing secure access to your organization’s resources to users outside your organization, such as partners, vendors, or contractors.

What is delegating invitations in Azure AD?

Delegating invitations in Azure AD allows you to provide external users with secure access to your organization’s resources while maintaining control over who has access to what.

How do you delegate invitations in Azure AD?

To delegate invitations in Azure AD, you can navigate to the External Identities tab in the Azure AD portal, select Guest users, click on the Invite option, and select the Delegate invitation option.

What are guest user settings in Azure AD?

Guest user settings in Azure AD are a set of settings that allow you to manage guest user access to your organization’s resources, such as requiring multi-factor authentication and restricting access to specific applications.

What are external collaboration settings in Azure AD?

External collaboration settings in Azure AD allow you to manage external sharing and guest access to Microsoft Teams and control who can share content externally.

What are conditional access policies in Azure AD?

Conditional access policies in Azure AD allow you to control access to your organization’s resources based on specific conditions, such as the user’s location, device type, or risk level.

What are some best practices for managing external collaboration settings in Azure AD?

Some best practices for managing external collaboration settings in Azure AD include using role-based access control, setting up policies for external collaboration, monitoring external collaboration settings, and providing training for external users.

How can role-based access control help with managing external collaboration settings in Azure AD?

Role-based access control allows you to assign permissions based on a user’s job function and ensure that users have the appropriate level of access to external collaboration settings.

What is the importance of setting up policies for external collaboration in Azure AD?

Setting up policies for external collaboration in Azure AD ensures that external users have the appropriate level of access to your organization’s resources and reduces the risk of security breaches.

What is the purpose of monitoring external collaboration settings in Azure AD?

Monitoring external collaboration settings in Azure AD helps identify potential security risks or compliance issues and allows you to take corrective actions in a timely manner.

How can conditional access policies help with managing external collaboration in Azure AD?

Conditional access policies allow you to control access to your organization’s resources based on specific conditions, which helps ensure that external users have the appropriate level of access and reduces the risk of security breaches.

How can providing training for external users help with managing external collaboration settings in Azure AD?

Providing training for external users helps ensure that they understand your organization’s security policies and best practices for secure collaboration, which reduces the risk of security breaches.

What are some examples of external users in Azure AD?

Examples of external users in Azure AD include partners, vendors, contractors, and customers.

How can you restrict access to specific applications for guest users in Azure AD?

You can restrict access to specific applications for guest users in Azure AD by using the Access control feature in the Azure AD portal.

How can you ensure that guest users sign in with a Microsoft account in Azure AD?

You can ensure that guest users sign in with a Microsoft account in Azure AD by configuring the External collaboration settings in the Azure AD portal.

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Cléa Mercier
10 months ago

Great article! I found the section about configuring external collaboration settings in Azure AD very useful.

Miréia Moreira
1 year ago

How do you manage guest user permissions effectively in Azure AD?

Linnea Seppala
1 year ago

This blog post helped me understand Conditional Access policies better.

Carlos Dean
2 years ago

Does anyone know if there’s a way to enforce MFA for guest users?

Felix Zhang
1 year ago

Thanks for sharing this detailed post!

Matilda Ollila
1 year ago

We had issues with our external collaboration settings. Anyone else experienced problems with guest invite settings?

Francisco Archuleta
1 year ago

Setting up cross-tenant synchronization was a bit confusing. Any tips?

Olja StanićStanković
10 months ago

Very informative blog post.

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