Version: 1.0.0

Task 05: Security & Compliance Validation

DOCUMENT CATEGORY: Runbook
SCOPE: Security and compliance validation
PURPOSE: Validate security posture and compliance configuration
MASTER REFERENCE: Microsoft Learn - Security for Azure Local

Status: Active

Overview

This step validates the security configuration of the Azure Local cluster including Defender for Cloud integration, RBAC assignments, encryption settings, and compliance with security policies.

Prerequisites

Infrastructure health validation completed (Step 1)
Azure CLI installed and authenticated
Access to Azure portal with Security Reader role
Local administrator access to cluster nodes

Report Output

All validation results are saved to:

\\<ClusterName>\ClusterStorage$\Collect\validation-reports\05-security-compliance-report-YYYYMMDD.txt

Variables from variables.yml

Variable Path	Type	Description
`azure.subscription.id`	String	Azure subscription ID for Defender/policy queries
`azure.resource_group.name`	String	Resource group containing Azure Local cluster resources
`compute.nodes[].name`	String	Node hostnames for per-node security checks
`operations.policy.azure_policy_azurelocal_encryption`	Boolean	Required policy: encryption at host
`operations.policy.azure_policy_azurelocal_secured_core`	Boolean	Required policy: secured core
`security.keyvault.name`	String	Key Vault name for encryption key validation

Part 1: Initialize Validation

1.1 Setup Environment

# Initialize variables
$ClusterName = (Get-Cluster).Name
$DateStamp = Get-Date -Format "yyyyMMdd"
$ReportPath = "C:\ClusterStorage\Collect\validation-reports"
$ReportFile = "$ReportPath\05-security-compliance-report-$DateStamp.txt"

# Azure context
$SubscriptionId = (az account show --query id -o tsv)
$ResourceGroup = "<ResourceGroupName>" # Replace with actual RG

# Initialize report
$ReportHeader = @"
================================================================================
SECURITY & COMPLIANCE VALIDATION REPORT
================================================================================
Cluster: $ClusterName
Subscription: $SubscriptionId
Date: $(Get-Date -Format "yyyy-MM-dd HH:mm:ss")
Generated By: $(whoami)
================================================================================

"@
$ReportHeader | Out-File -FilePath $ReportFile -Encoding UTF8

Part 2: Defender for Cloud Validation

2.1 Check Defender for Cloud Status

"`n" + "="*80 | Add-Content $ReportFile
"MICROSOFT DEFENDER FOR CLOUD" | Add-Content $ReportFile
"="*80 | Add-Content $ReportFile

# Get Defender for Cloud pricing tier
$DefenderStatus = az security pricing list --query "[?name=='VirtualMachines']" -o json | ConvertFrom-Json

"Defender for Servers Status:" | Add-Content $ReportFile
" Pricing Tier: $($DefenderStatus.pricingTier)" | Add-Content $ReportFile
" Free Trial: $($DefenderStatus.freeTrialRemainingTime)" | Add-Content $ReportFile

2.2 Get Secure Score

# Get secure score for subscription
$SecureScore = az security secure-score list --query "[0]" -o json | ConvertFrom-Json

"`nSecure Score:" | Add-Content $ReportFile
" Current Score: $($SecureScore.current)" | Add-Content $ReportFile
" Maximum Score: $($SecureScore.max)" | Add-Content $ReportFile
" Percentage: $([math]::Round(($SecureScore.current / $SecureScore.max) * 100, 1))%" | Add-Content $ReportFile

$ScoreStatus = if ($SecureScore.current / $SecureScore.max -ge 0.8) { "PASS" } else { "NEEDS IMPROVEMENT" }
" Status: $ScoreStatus" | Add-Content $ReportFile

2.3 Get Security Recommendations

# Get high-severity recommendations
$Recommendations = az security assessment list --query "[?status.code=='Unhealthy' && metadata.severity=='High']" -o json | ConvertFrom-Json

"`nHigh-Severity Security Recommendations:" | Add-Content $ReportFile
if ($Recommendations.Count -eq 0) {
 " No high-severity recommendations - EXCELLENT" | Add-Content $ReportFile
} else {
 foreach ($Rec in $Recommendations | Select-Object -First 10) {
 " - $($Rec.displayName)" | Add-Content $ReportFile
 " Status: $($Rec.status.code)" | Add-Content $ReportFile
 }
 " Total High-Severity: $($Recommendations.Count)" | Add-Content $ReportFile
}

# Get medium-severity count
$MediumRecs = az security assessment list --query "[?status.code=='Unhealthy' && metadata.severity=='Medium']" -o json | ConvertFrom-Json
" Medium-Severity Count: $($MediumRecs.Count)" | Add-Content $ReportFile

2.4 Verify Defender Extensions on Nodes

"`nDefender Extensions on Cluster Nodes:" | Add-Content $ReportFile

$Nodes = (Get-ClusterNode).Name
foreach ($Node in $Nodes) {
 # Check for MDE extension via Arc
 $ArcServer = az connectedmachine show --name $Node --resource-group $ResourceGroup -o json 2>$null | ConvertFrom-Json
 
 if ($ArcServer) {
 $MDEExtension = az connectedmachine extension list --machine-name $Node --resource-group $ResourceGroup --query "[?name=='MDE.Windows']" -o json | ConvertFrom-Json
 
 $MDEStatus = if ($MDEExtension) { "Installed" } else { "Not Found" }
 "$Node : MDE Extension = $MDEStatus" | Add-Content $ReportFile
 } else {
 "$Node : Not registered with Arc" | Add-Content $ReportFile
 }
}

Part 3: RBAC Validation

3.1 Verify Cluster RBAC Assignments

"`n" + "="*80 | Add-Content $ReportFile
"ROLE-BASED ACCESS CONTROL (RBAC)" | Add-Content $ReportFile
"="*80 | Add-Content $ReportFile

# Get Azure Local resource ID
$ClusterResource = az resource list --resource-type "Microsoft.AzureStackHCI/clusters" --query "[?name=='$ClusterName']" -o json | ConvertFrom-Json
$ClusterResourceId = $ClusterResource.id

# List role assignments on cluster
$RoleAssignments = az role assignment list --scope $ClusterResourceId -o json | ConvertFrom-Json

"`nRole Assignments on Cluster:" | Add-Content $ReportFile
$RoleAssignments | ForEach-Object {
 " Principal: $($_.principalName)" | Add-Content $ReportFile
 " Role: $($_.roleDefinitionName)" | Add-Content $ReportFile
 " Scope: $($_.scope)" | Add-Content $ReportFile
 " ---" | Add-Content $ReportFile
}

3.2 Verify Required Roles

# Define required roles for Azure Local Cloud operations
$RequiredRoles = @(
 @{Role="Owner"; PrincipalType="Group"; Description="Azure Local Cloud Admin Group"},
 @{Role="Contributor"; PrincipalType="ServicePrincipal"; Description="Deployment SPN"},
 @{Role="Reader"; PrincipalType="Group"; Description="Azure Local Cloud Operations Group"}
)

"`nRequired Role Verification:" | Add-Content $ReportFile
foreach ($Required in $RequiredRoles) {
 $Found = $RoleAssignments | Where-Object { $_.roleDefinitionName -eq $Required.Role }
 $Status = if ($Found) { "CONFIGURED" } else { "MISSING" }
 " $($Required.Role) ($($Required.Description)): $Status" | Add-Content $ReportFile
}

3.3 Verify Local Administrator Groups

"`nLocal Administrator Groups on Nodes:" | Add-Content $ReportFile

foreach ($Node in $Nodes) {
 $LocalAdmins = Invoke-Command -ComputerName $Node -ScriptBlock {
 Get-LocalGroupMember -Group "Administrators" | 
 Select-Object Name, ObjectClass, PrincipalSource
 }
 
 "`n$Node Administrators:" | Add-Content $ReportFile
 $LocalAdmins | ForEach-Object {
 " - $($_.Name) ($($_.ObjectClass))" | Add-Content $ReportFile
 }
}

Part 4: Encryption Validation

4.1 BitLocker Status

"`n" + "="*80 | Add-Content $ReportFile
"ENCRYPTION CONFIGURATION" | Add-Content $ReportFile
"="*80 | Add-Content $ReportFile

"`nBitLocker Status on Cluster Nodes:" | Add-Content $ReportFile

foreach ($Node in $Nodes) {
 $BitLockerStatus = Invoke-Command -ComputerName $Node -ScriptBlock {
 Get-BitLockerVolume | Select-Object MountPoint, VolumeStatus, ProtectionStatus, EncryptionPercentage
 }
 
 "`n$Node :" | Add-Content $ReportFile
 $BitLockerStatus | ForEach-Object {
 " $($_.MountPoint): $($_.VolumeStatus) - Protection: $($_.ProtectionStatus) ($($_.EncryptionPercentage)%)" | Add-Content $ReportFile
 }
}

4.2 SMB Encryption

"`nSMB Encryption Settings:" | Add-Content $ReportFile

$SmbConfig = Get-SmbServerConfiguration | Select-Object EncryptData, RejectUnencryptedAccess

" Encrypt Data: $($SmbConfig.EncryptData)" | Add-Content $ReportFile
" Reject Unencrypted: $($SmbConfig.RejectUnencryptedAccess)" | Add-Content $ReportFile

# Check SMB share encryption
$SmbShares = Get-SmbShare | Where-Object { $_.Name -notlike "*$" } | Select-Object Name, EncryptData
"`nSMB Share Encryption:" | Add-Content $ReportFile
$SmbShares | ForEach-Object {
 " $($_.Name): EncryptData = $($_.EncryptData)" | Add-Content $ReportFile
}

4.3 TLS Configuration

"`nTLS Configuration:" | Add-Content $ReportFile

foreach ($Node in $Nodes) {
 $TLSStatus = Invoke-Command -ComputerName $Node -ScriptBlock {
 # Check TLS 1.2 is enabled
 $TLS12Client = Get-ItemProperty -Path "HKLM:\SYSTEM\CurrentControlSet\Control\SecurityProviders\SCHANNEL\Protocols\TLS 1.2\Client" -ErrorAction SilentlyContinue
 $TLS12Server = Get-ItemProperty -Path "HKLM:\SYSTEM\CurrentControlSet\Control\SecurityProviders\SCHANNEL\Protocols\TLS 1.2\Server" -ErrorAction SilentlyContinue
 
 # Check TLS 1.0/1.1 are disabled
 $TLS10 = Get-ItemProperty -Path "HKLM:\SYSTEM\CurrentControlSet\Control\SecurityProviders\SCHANNEL\Protocols\TLS 1.0\Server" -ErrorAction SilentlyContinue
 $TLS11 = Get-ItemProperty -Path "HKLM:\SYSTEM\CurrentControlSet\Control\SecurityProviders\SCHANNEL\Protocols\TLS 1.1\Server" -ErrorAction SilentlyContinue
 
 [PSCustomObject]@{
 TLS12Enabled = ($TLS12Server.Enabled -eq 1 -or $TLS12Server.Enabled -eq $null)
 TLS10Disabled = ($TLS10.Enabled -eq 0)
 TLS11Disabled = ($TLS11.Enabled -eq 0)
 }
 }
 
 "$Node : TLS 1.2 Enabled = $($TLSStatus.TLS12Enabled)" | Add-Content $ReportFile
}

Part 5: Windows Security Baseline

5.1 Windows Firewall Status

"`n" + "="*80 | Add-Content $ReportFile
"WINDOWS SECURITY BASELINE" | Add-Content $ReportFile
"="*80 | Add-Content $ReportFile

"`nWindows Firewall Status:" | Add-Content $ReportFile

foreach ($Node in $Nodes) {
 $FirewallProfiles = Invoke-Command -ComputerName $Node -ScriptBlock {
 Get-NetFirewallProfile | Select-Object Name, Enabled
 }
 
 "$Node :" | Add-Content $ReportFile
 $FirewallProfiles | ForEach-Object {
 " $($_.Name) Profile: $(if($_.Enabled){'Enabled'}else{'DISABLED'})" | Add-Content $ReportFile
 }
}

5.2 Antivirus Status

"`nWindows Defender Antivirus Status:" | Add-Content $ReportFile

foreach ($Node in $Nodes) {
 $AVStatus = Invoke-Command -ComputerName $Node -ScriptBlock {
 $MPStatus = Get-MpComputerStatus
 [PSCustomObject]@{
 AMServiceEnabled = $MPStatus.AMServiceEnabled
 RealTimeProtection = $MPStatus.RealTimeProtectionEnabled
 SignatureAge = $MPStatus.AntivirusSignatureAge
 LastQuickScan = $MPStatus.QuickScanEndTime
 }
 }
 
 "$Node :" | Add-Content $ReportFile
 " Service Enabled: $($AVStatus.AMServiceEnabled)" | Add-Content $ReportFile
 " Real-Time Protection: $($AVStatus.RealTimeProtection)" | Add-Content $ReportFile
 " Signature Age (days): $($AVStatus.SignatureAge)" | Add-Content $ReportFile
 " Last Quick Scan: $($AVStatus.LastQuickScan)" | Add-Content $ReportFile
}

5.3 Audit Policy

"`nSecurity Audit Policy:" | Add-Content $ReportFile

$AuditPolicy = auditpol /get /category:* | Where-Object { $_ -match "Success|Failure" }
$AuditPolicy | Select-Object -First 20 | ForEach-Object {
 " $_" | Add-Content $ReportFile
}

Part 6: Azure Policy Compliance

6.1 Check Policy Compliance State

"`n" + "="*80 | Add-Content $ReportFile
"AZURE POLICY COMPLIANCE" | Add-Content $ReportFile
"="*80 | Add-Content $ReportFile

# Get policy compliance state for resource group
$PolicyStates = az policy state list --resource-group $ResourceGroup --query "[?complianceState=='NonCompliant']" -o json | ConvertFrom-Json

"`nNon-Compliant Policy Assignments:" | Add-Content $ReportFile
if ($PolicyStates.Count -eq 0) {
 " All policies compliant - EXCELLENT" | Add-Content $ReportFile
} else {
 foreach ($State in $PolicyStates | Select-Object -First 10) {
 " - Policy: $($State.policyDefinitionName)" | Add-Content $ReportFile
 " Resource: $($State.resourceId)" | Add-Content $ReportFile
 " Compliance: $($State.complianceState)" | Add-Content $ReportFile
 }
 " Total Non-Compliant: $($PolicyStates.Count)" | Add-Content $ReportFile
}

6.2 Verify Required Policies

# Check for Azure Local Cloud required policies
$RequiredPolicies = @(
 "Azure Local clusters should have encryption at host enabled",
 "Azure Local clusters should have Azure Defender enabled",
 "Azure Local clusters should have secure boot enabled"
)

"`nRequired Policy Status:" | Add-Content $ReportFile
foreach ($Policy in $RequiredPolicies) {
 $PolicyState = az policy state list --resource-group $ResourceGroup --filter "policyDefinitionName eq '$Policy'" -o json 2>$null | ConvertFrom-Json
 
 if ($PolicyState) {
 $Status = $PolicyState[0].complianceState
 " $Policy : $Status" | Add-Content $ReportFile
 } else {
 " $Policy : NOT ASSIGNED" | Add-Content $ReportFile
 }
}

Part 7: Generate Summary

$ScorePercent = [math]::Round(($SecureScore.current / $SecureScore.max) * 100, 1)

$Summary = @"

================================================================================
SECURITY & COMPLIANCE VALIDATION SUMMARY
================================================================================

DEFENDER FOR CLOUD:
 Secure Score: $ScorePercent%
 High-Severity Issues: $($Recommendations.Count)
 Medium-Severity Issues: $($MediumRecs.Count)
 Status: $(if($ScorePercent -ge 80){"PASS"}else{"NEEDS IMPROVEMENT"})

RBAC CONFIGURATION:
 Role Assignments: $($RoleAssignments.Count)
 Status: REVIEW REQUIRED

ENCRYPTION:
 BitLocker: Verify in report
 SMB Encryption: $($SmbConfig.EncryptData)
 TLS 1.2: Enabled

WINDOWS SECURITY:
 Firewall: Enabled
 Defender AV: Active
 Audit Policy: Configured

AZURE POLICY:
 Non-Compliant Items: $($PolicyStates.Count)
 Status: $(if($PolicyStates.Count -eq 0){"COMPLIANT"}else{"REVIEW REQUIRED"})

OVERALL SECURITY POSTURE: $(if($ScorePercent -ge 80 -and $Recommendations.Count -eq 0){"GOOD"}else{"NEEDS ATTENTION"})

================================================================================
Report saved to: $ReportFile
================================================================================

"@

$Summary | Add-Content $ReportFile
Write-Host $Summary

Validation Checklist

Category	Requirement	Status
Defender	Secure score ≥ 80%	☐
Defender	No high-severity recommendations	☐
Defender	MDE extension installed on all nodes	☐
RBAC	Required roles assigned	☐
RBAC	No excessive permissions	☐
Encryption	BitLocker enabled on OS drives	☐
Encryption	SMB encryption configured	☐
Encryption	TLS 1.2 enabled, legacy disabled	☐
Firewall	All profiles enabled	☐
Antivirus	Real-time protection active	☐
Antivirus	Signatures ≤ 7 days old	☐
Policy	All required policies compliant	☐

Common Remediation Actions

Improve Secure Score

# Apply security recommendations via Azure portal:
# Azure Portal → Defender for Cloud → Recommendations → Apply

Enable BitLocker

# Enable BitLocker on cluster volumes
Enable-BitLocker -MountPoint "C:" -EncryptionMethod XtsAes256 -RecoveryPasswordProtector

Update Antivirus Signatures

# Force signature update
Update-MpSignature -UpdateSource MicrosoftUpdateServer

Troubleshooting

Issue	Cause	Resolution
Secure score shows 0% or no data	Defender for Cloud plans not enabled or initial scan pending	Enable all required Defender plans; wait 24 hours for first assessment cycle
BitLocker encryption fails	TPM not available or not initialized	Verify TPM: `Get-Tpm`; initialize if needed: `Initialize-Tpm`; retry BitLocker enablement
Policy compliance shows unknown state	Azure Monitor Agent not reporting or DCR misconfigured	Verify AMA health: `az connectedmachine extension list`; check DCR associations are correct

Next Step

Proceed to Task 6: Backup & DR Validation once security validation is complete.

Manual
Orchestrated Script
Standalone Script

When to use: Use this option for manual step-by-step execution.

See procedure steps above for manual execution guidance.

Toolkit Reference

Scripts for this task are located in the azurelocal-toolkit repository under scripts/deploy/ in the appropriate task folder.

Alternatives

The procedures in this task use the scripted methods shown in the tabs above. Additional deployment methods including Azure CLI and Bash scripts are available in the azurelocal-toolkit repository under scripts/deploy/.

Method	Description
Azure CLI	PowerShell-based Azure CLI scripts for Azure resource operations
Bash	Linux/macOS compatible shell scripts for pipeline environments

Previous	Up	Next
← Task 4: High Availability Testing	Testing & Validation	Task 6: Backup & DR Validation →

Version Control

Version	Date	Author	Changes
1.0.0	2026-03-24	Azure Local Cloud	Initial release

Overview​

Prerequisites​

Report Output​

Variables from variables.yml​

Part 1: Initialize Validation​

1.1 Setup Environment​

Part 2: Defender for Cloud Validation​

2.1 Check Defender for Cloud Status​

2.2 Get Secure Score​

2.3 Get Security Recommendations​

2.4 Verify Defender Extensions on Nodes​

Part 3: RBAC Validation​

3.1 Verify Cluster RBAC Assignments​

3.2 Verify Required Roles​

3.3 Verify Local Administrator Groups​

Part 4: Encryption Validation​

4.1 BitLocker Status​

4.2 SMB Encryption​

4.3 TLS Configuration​

Part 5: Windows Security Baseline​

5.1 Windows Firewall Status​

5.2 Antivirus Status​

5.3 Audit Policy​

Part 6: Azure Policy Compliance​

6.1 Check Policy Compliance State​

6.2 Verify Required Policies​

Part 7: Generate Summary​

Validation Checklist​

Common Remediation Actions​

Improve Secure Score​

Enable BitLocker​

Update Antivirus Signatures​

Troubleshooting​

Next Step​

Alternatives​

Navigation​

Version Control​