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AZ-104 · Question #502

Drag and Drop Question You have downloaded an Azure Resource Manager (ARM) template to deploy numerous virtual machines (VMs). The ARM template is based on a current VM, but must be adapted to…

The correct answer is An Azure Key Vault; An access policy. Azure Key Vault is the correct service for securely storing secrets, keys, and certificates - including administrative passwords - so they are never stored in plain text within ARM templates. An Access Policy must also be created within the Key Vault to define which users…

Submitted by jordan8· Mar 4, 2026Configure and manage virtual networks / Implement and manage storage and security solutions - specifically securing credentials used in infrastructure deployments (AZ-104 / AZ-900 Security and Compliance)

Question

Drag and Drop Question You have downloaded an Azure Resource Manager (ARM) template to deploy numerous virtual machines (VMs). The ARM template is based on a current VM, but must be adapted to reference an administrative password. You need to make sure that the password cannot be stored in plain text. You are preparing to create the necessary components to achieve your goal. Which of the following should you create to achieve your goal? Answer by dragging the correct option from the list to the answer area. Answer:

Exhibit

AZ-104 question #502 exhibit

Answer Area

Drag items

An Azure Key VaultAn Azure Storage accountAzure Active Directory (AD) Identity ProtectionAn access policyAn Azure policyA backup policy

Correct arrangement

  • An Azure Key Vault
  • An access policy

Explanation

Azure Key Vault is the correct service for securely storing secrets, keys, and certificates - including administrative passwords - so they are never stored in plain text within ARM templates. An Access Policy must also be created within the Key Vault to define which users, applications, or services are permitted to retrieve the stored secret, ensuring controlled and auditable access. Together, these two components allow the ARM template to reference the password securely using a Key Vault reference instead of embedding the value directly.

Topics

#Azure Key Vault#ARM Templates#Secret Management#Access Policies

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