Managing secure access to cloud resources is a top priority for every organization today. With remote work, diverse devices, and sensitive data, it’s crucial to make sure the right people have the right access—no matter where they are. That’s where Conditional Access policies in Microsoft 365 come into play. If you’re curious about how to set up a policy that requires multifactor authentication (MFA), or how to create exceptions for trusted locations and applications, you’re in the right place!
What Is a Conditional Access Policy?
A Conditional Access policy helps organizations control how users access cloud apps and services. It lets you protect your environment by requiring extra verification (like MFA), setting access rules for specific apps, or even restricting logins from risky locations. Think of it as a smart security guard—letting in the right people, at the right time, under the right conditions.
Conditional Access Policy Management is a core aspect of modern Cyber Security and regulates how users authenticate to company resources in the cloud.
Why Is It Important?
Properly managing access is a critical piece of overall Managed IT Security. It helps to:
- Protect sensitive data in Microsoft 365 and other cloud apps
- Meet regulatory requirements for security
- Limit the risk of breaches due to weak passwords or stolen credentials
- Give flexibility without sacrificing control
Creating a Conditional Access Policy Requiring Multifactor Authentication
Let’s break down the recommended steps to create a Conditional Access policy for your environment:
- Sign in to the Microsoft Entra admin center. Make sure you have Conditional Access Administrator permissions.
- Go to Protection > Conditional Access > Policies.
- Click New policy. Give it a clear, meaningful name (consistency helps as you add more policies over time).
- Under Assignments, choose Users or workload identities.
- In Include, select All users.
- Under Exclude, add any emergency or break-glass accounts used for admin recovery. (This ensures you don’t get locked out!)
- For Target resources > Cloud apps > Include, select All cloud apps.
- Under Exclude, pick applications that do not need multifactor authentication (for example, less sensitive internal apps).
- Go to Access controls > Grant and select Grant access with Require multifactor authentication. Click Select.
- Review your settings and set Enable policy to Report-only. This lets you test before enforcing the rule.
- Click Create to save the policy.
- Once you’ve reviewed results in report-only mode and are satisfied, switch Enable policy from Report-only to On.
Adding Exceptions for Trusted Networks—Named Locations
Many organizations want a smoother login experience for staff connecting from secure, company-controlled networks. Microsoft 365 Security Services allow you to define Named locations (such as your corporate office IP range) so users inside your main office don’t need MFA every time.
- Under Assignments, go to Conditions > Locations.
- Set Configure to Yes.
- In Include, pick Any location.
- Under Exclude, select All trusted locations. This tells the policy not to require MFA when logging in from recognized office networks.
- Click Done and Save your policy updates.
You can learn more about configuring location conditions from Microsoft’s official documentation: What is the location condition in Microsoft Entra Conditional Access?
Tips for Effective Policy Management
- Always test new policies in report-only mode before enforcing.
- Create clear, consistent naming standards for your policies.
- Regularly review which users and apps are included/excluded. Remove exemptions that are no longer needed.
- Keep an up-to-date list of emergency/break-glass accounts—and monitor their activity!
If you need help setting up or managing Conditional Access, Unlimited Helpdesk Support can assist with hands-on setup and troubleshooting for your Microsoft 365 environment. For ongoing policy optimization and protection, our Managed IT Services are designed to give Canadian businesses peace of mind.
Get Expert Help Protecting Your Cloud Apps
System Support has helped over 80 Canadian businesses put advanced security measures in place—without slowing down day-to-day work. If you want to make sure your Conditional Access policies are rock-solid, request a quote today and start a conversation with a friendly security expert.
