Azure Policy supports both built-in and custom policy definitions. Administrators can create custom definitions to enforce organization-specific rules and then assign those definitions at various scopes (management group, subscription, resource group, or individual resource). The other options describe limitations that do not exist: built-in definitions are not the only option, assignments are not restricted to the subscription scope, and Azure Policy does not depend on Azure Defender.
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Microsoft Azure Administrator Associate AZ-104
Manage Azure identities and governance
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