Security & Governance in Dynamics 365

  

Security & Governance in Dynamics 365 Integrations

This includes securing:

  • Data in motion (API calls, webhooks, service bus)

  • Data at rest (in Dynamics, Azure services)

  • Identities and access controls

  • Configuration and secrets

  • Monitoring and compliance


🧱 Key Areas of Focus

1. Authentication & Authorization

a. OAuth 2.0 + Azure AD

  • Dynamics 365 APIs are secured via Azure Active Directory (Azure AD).

  • Use service principals (app registrations) for backend integrations.

  • Use Delegated permissions for user-level access.

b. Access Control

  • Apply least privilege: Grant only necessary API permissions.

  • Use Azure AD Conditional Access Policies for added protection.

  • Role-based access via Dataverse security roles.


2. Securing APIs and Endpoints

PracticeDetails
API Management (APIM)Add rate limiting, IP restrictions, JWT validation
Private Endpoints / VNetPrevent public access to Logic Apps, Functions
HTTPS onlyEncrypt all traffic
CORS policiesLimit domains allowed to access APIs

3. Secure Secrets and Configuration

  • Use Azure Key Vault to store:

    • API keys

    • Client secrets

    • Connection strings

  • Integrate Key Vault with:

    • Azure Functions

    • Logic Apps

    • Power Automate (via environment variables)


4. Data Loss Prevention (DLP) Policies

  • Create DLP policies in Power Platform Admin Center to:

    • Block risky connectors (e.g., Gmail, Twitter)

    • Restrict which connectors can be used together (e.g., SharePoint + Outlook)

  • Enforce data residency and compliance policies (GDPR, HIPAA).


5. Audit Logs and Monitoring

ToolPurpose
Dataverse Audit LogsTrack changes to data and system configuration
Azure Monitor / Log AnalyticsTrack Azure services behavior
Application InsightsPlugin or integration telemetry
Microsoft PurviewData governance and classification

6. Governance & Lifecycle Policies

PolicyPurpose
Environment StrategySeparate dev/test/prod environments
Solution GovernanceApprove what can be deployed and by whom
ALM AutomationEnforce gated deployments via DevOps
Naming & tagging standardsRequired for audit and cost control
Connector governanceBlock or allow connectors (e.g., HTTP, SQL Server)

7. Zero Trust Model for Integration

  • Verify explicitly (use MFA, token validation)

  • Limit blast radius (isolate components)

  • Assume breach (log, monitor, alert on anomalies)


🚫 What to Avoid

Don'tRisk
Hardcode secrets in code or flowsRisk of credential leakage
Use global admin for app registrationExcessive privilege
Allow public endpoints unnecessarilyAttack surface increase
Skip loggingNo audit trail for forensic analysis

🎯 Interview Talking Points

You should be able to:

  • Explain how you secured an integration using Azure AD, Key Vault, and APIM

  • Describe your governance strategy across Power Platform environments

  • Discuss monitoring and alerting setup for failures or unauthorized access

  • Demonstrate how you align with Zero Trust and least privilege principles