Intermediate โฑ 120 min ๐Ÿ“‹ 14 Steps

Set Up Insider Risk Management

Configure Microsoft Purview Insider Risk Management policies to detect and investigate potential insider threats, set up indicators, create investigation workflows, and deploy user-level risk scoring.

๐Ÿ“‹ Overview

About This Lab

Insider threats are among the hardest risks to detect because the actors already have legitimate access to corporate systems. In this lab you will configure Microsoft Purview Insider Risk Management (IRM) policies to detect potential insider threats such as data exfiltration, intellectual property theft, and security policy violations. You will set up risk indicators that correlate signals across Microsoft 365 services, create investigation workflows for triaging alerts, configure user-level risk scoring with adaptive protection, and establish privacy controls that balance security needs with employee rights.

๐Ÿข Enterprise Use Case

A global technology company with 10,000 employees has experienced two IP theft incidents in the past year. both by departing employees who exfiltrated proprietary source code and customer data in the weeks before their departure date. The company needs to detect data exfiltration patterns, identify security policy violations by disgruntled or departing insiders, and build automated investigation workflows that surface risky behaviour before data loss occurs. all while maintaining employee privacy and complying with regional data protection regulations.

๐ŸŽฏ What You Will Learn

  1. Understand Insider Risk Management concepts and how IRM correlates weak signals into high-confidence alerts
  2. Select and configure policy templates for data theft, data leaks, and security policy violations
  3. Set up risk indicators across email, endpoints, SharePoint, Teams, and cloud apps
  4. Build investigation workflows for triaging and escalating insider risk alerts
  5. Configure user-level risk scoring and review user risk timelines
  6. Deploy adaptive protection that automatically adjusts DLP policies based on user risk levels
  7. Manage insider risk cases from detection through resolution
  8. Configure privacy controls including pseudonymisation and role-based access
  9. Integrate HR connector data for departure-date and performance-improvement signals
  10. Build dashboards and reports for executive visibility into insider risk trends

๐Ÿ”‘ Why This Matters

Insider threats cause the most damage per incident of any attack vector. 34% of all data breaches involve insiders according to industry research. Unlike external attacks that must bypass perimeter defences, insiders already have legitimate access and know exactly where the most valuable data resides. Microsoft Purview Insider Risk Management provides behavioural analytics that correlate hundreds of signals to detect risky patterns before data loss occurs, enabling security teams to intervene early and reduce the average cost of an insider incident from $15.4 million to a fraction of that through proactive detection.

โš™๏ธ Prerequisites

  • Completed Lab 02. DLP policies deployed and tested
  • Insider Risk Management Administrator role. or Global Administrator in your M365 tenant
  • Microsoft 365 E5 license. or E5 Insider Risk Management add-on
  • HR connector configured. for departure date and performance improvement signals (optional but recommended)
  • Audit logging enabled. in Microsoft 365 (Unified Audit Log must be on)
  • Exchange Online PowerShell module. for compliance automation scripts
๐Ÿ’ก Pro Tip: Verify audit logging is enabled before proceeding: Get-AdminAuditLogConfig | Select UnifiedAuditLogIngestionEnabled. Without audit logging, IRM cannot detect user activities.

Step 1 ยท Navigate to Insider Risk Management

Insider Risk Management detects potentially risky activities by correlating signals across Microsoft 365 services: file downloads, email forwarding, SharePoint access, and more.

Portal Instructions

  1. Navigate to compliance.microsoft.com > Insider risk management
  2. Review the Overview dashboard showing global risk trends, active alerts, and open cases
  3. Note the three key tabs: Alerts, Cases, and Policies
  4. Verify your role: click Settings > Role groups and confirm you are in the Insider Risk Management role group

PowerShell: Verify IRM Module

# Connect to Security & Compliance PowerShell
# WHY: Required session for Insider Risk Management and compliance cmdlets
Connect-IPPSSession -UserPrincipalName admin@contoso.com

# Verify IRM role group membership
# WHAT: Lists all members of the Insider Risk Management role group
# WHY: Only members of this role group can view alerts, cases, and user activity
#      timelines. Confirms your admin account has the necessary permissions.
# OUTPUT: DisplayName and email of each role group member
# CONCERN: If your account is not listed, you won't see IRM alerts or cases
Get-RoleGroupMember -Identity "Insider Risk Management" | Format-Table DisplayName, PrimarySmtpAddress

# Check if audit logging is enabled
# WHAT: Verifies that unified audit log ingestion is active in the tenant
# WHY: IRM depends on audit logs to detect user activities (file downloads,
#      email forwarding, USB copies). Without audit logging, IRM is blind.
# OUTPUT: UnifiedAuditLogIngestionEnabled should be True
# CONCERN: If False, run Set-AdminAuditLogConfig -UnifiedAuditLogIngestionEnabled $true
Get-AdminAuditLogConfig | Select-Object UnifiedAuditLogIngestionEnabled

Step 2 ยท Configure Global Settings

Go to Settings > Insider risk management. Configure the global Privacy setting. decide whether to show anonymized usernames or actual names during investigations. Anonymized mode protects employee privacy until risk is confirmed.

Configure the Intelligent detections settings: set the file extension exclusions (ignore .log, .tmp files), volume thresholds for anomaly detection, and domain exclusions for trusted external domains.

Step 3 ยท Enable Risk Indicators

Navigate to Settings > Indicators. Enable the indicators that align with your risk scenarios: Office indicators (file downloads, email to external domains), Device indicators (USB copy, print), and Security policy violation indicators.

Select indicator thresholds carefully: low thresholds generate more alerts but include more noise; high thresholds miss subtle patterns but produce higher-fidelity alerts. Start with medium thresholds and tune based on alert volume.

Pro Tip: Enable the Cumulative exfiltration detection option. it identifies users who slowly exfiltrate data over time (e.g., downloading 10 files per day for 30 days) rather than a single large download event.

Step 4 ยท Create a Data Theft Policy

This template correlates HR departure signals with data exfiltration indicators to identify employees who may be stealing data before leaving.

Portal Instructions

  1. Navigate to Policies > Create policy
  2. Select template: Data theft by departing users
  3. Name: Policy-DataTheft-DepartingUsers
  4. Configure Users and groups: select All users or specific departments
  5. Configure Triggering events:
    • User submitted resignation (from HR connector)
    • User’s last day is within 30 days
    • User account is disabled in Entra ID
  6. Configure Indicators:
    • Mass file downloads from SharePoint/OneDrive
    • Email forwarding to personal accounts (gmail.com, outlook.com)
    • USB file copy activity (requires Endpoint DLP)
    • Print activity on sensitive documents
    • Cloud upload to non-corporate services
  7. Set indicator thresholds: Medium (recommended starting point)
  8. Click Submit to activate the policy

PowerShell: Check Active Policies

# List all insider risk policies in the tenant
# WHAT: Shows all configured IRM policies with their status and template type
# OUTPUT: Name, IsEnabled (active or disabled), PolicyTemplate (Data theft,
#         Data leaks, Security violations), CreatedDate
# WHY: Confirms the policy was created successfully and is actively monitoring
# CONCERN: If IsEnabled=False, the policy exists but is not generating alerts
Get-InsiderRiskPolicy | Format-Table Name, IsEnabled, PolicyTemplate, CreatedDate

# Get detailed configuration of a specific policy
# WHAT: Shows full settings including indicators, thresholds, and trigger events
# OUTPUT: All policy properties in list format for detailed review
# USE: Verify indicator thresholds, user scope, and triggering events match
#      what was configured in the portal
Get-InsiderRiskPolicy -Identity "Policy-DataTheft-DepartingUsers" | Format-List
โš ๏ธ Important: Policies may take up to 24 hours to start generating alerts after creation. The system needs time to establish behavioural baselines for your users before it can detect anomalies.

Step 5 ยท Create a Data Leaks Policy

Create a second policy: Data leaks by risky users. This template identifies ongoing data exposure from users exhibiting risky behavior patterns. regardless of employment status.

Configure the triggers: DLP policy match (connect to your Lab 02 DLP policies), security policy violation, or sequence of risky activities. Set the indicator thresholds for: volume of files downloaded, number of external emails, and cloud upload activity.

Step 6 ยท Create a Security Policy Violation Policy

Create a third policy: Security policy violations. This template detects users who bypass or violate security controls: disabling endpoint protection, modifying security settings, or accessing restricted resources.

Configure the indicators: endpoint protection disabled, Windows security settings changed, administrative privilege escalation, and access to restricted SharePoint sites. Weight these indicators by severity.

Step 7 ยท Configure Priority User Groups

Navigate to Settings > Priority user groups. Create groups for high-value targets: executives, finance team members, users with access to trade secrets, and employees in notice period.

Priority user groups receive enhanced monitoring. lower thresholds, additional indicators, and faster alert generation. This ensures the highest-risk users get the most scrutiny without overwhelming the system with alerts for the entire organization.

Step 8 ยท Set Up Alert Triage Workflow

Define the alert triage process: Level 1 analysts review new alerts and dismiss false positives, Level 2 analysts investigate confirmed alerts and create cases, Level 3 analysts conduct deep investigations and coordinate with HR and Legal.

Navigate to Alerts and review the queue. Each alert shows: the user, the activity that triggered it, the risk score, the number of related activities, and the policy that generated it.

Step 9 ยท Investigate an Insider Risk Case

Select a high-severity alert and create a case. The case view shows: a timeline of all risky activities, cumulative risk score trend, file activity details, email activity details, and user profile information.

Use the Content explorer tab to examine specific files that were accessed, downloaded, or shared. Review the User activity tab to see the full sequence of actions leading to the alert.

Step 10 ยท Configure Forensic Evidence

Navigate to Settings > Forensic evidence (preview). This feature captures screen recordings and keystrokes when high-risk activities are detected, providing visual evidence for investigations.

Configure forensic evidence carefully: capture only during confirmed high-risk activities, store recordings in a secure location with limited access, and set retention periods that comply with your legal and privacy requirements.

Pro Tip: Consult your legal team before enabling forensic evidence. Recording employee activity has significant legal and privacy implications that vary by jurisdiction. Many regions require employee consent or notification.

Step 11 ยท Build Investigation Reports

For completed cases, generate investigation reports that document: the triggering activity, the investigation timeline, evidence reviewed, findings, and recommended actions.

Reports should be factual and objective. avoid drawing conclusions about intent. Present the evidence and let HR, Legal, and management make decisions about appropriate responses.

Step 12 ยท Configure Notice Templates

Navigate to Settings > Notice templates. Create notification templates for different scenarios: awareness reminder (low risk), formal notice (medium risk), and investigation notification (high risk, coordinated with HR and Legal).

Notices serve both as intervention tools and documentation. A well-timed awareness reminder can stop risky behavior before it escalates, while formal notices create a record for potential disciplinary action.

Step 13 ยท Integrate with Other Purview Solutions

Connect Insider Risk with your DLP policies (Lab 02) and Communication Compliance. DLP detections feed into insider risk scoring, and communication compliance violations contribute to the user's overall risk profile.

Review the Integrated view showing how signals from multiple Purview solutions combine to create a comprehensive risk picture for each user. Cross-solution correlation is one of the most powerful capabilities of the Purview platform.

Step 14 ยท Establish Insider Risk Operations

Document the operational procedures: daily alert triage cadence, weekly case review meetings, monthly policy tuning reviews, and quarterly reporting to leadership.

Create a RACI matrix: who is Responsible for alert triage, who is Accountable for case investigations, who is Consulted for policy changes (Legal, HR, Privacy), and who is Informed about program metrics (CISO, executives).

๐Ÿ“š Documentation Resources

ResourceDescription
Learn about insider risk managementOverview of insider risk capabilities
Plan for insider risk managementPlanning guide for deployment
Insider risk management policiesPolicy template reference and configuration
Insider risk management settingsConfigure global settings and indicators
Insider risk management activitiesInvestigate and triage insider risk alerts
Insider risk management casesCase management and escalation workflow

Summary

What You Accomplished

  • Enabled Insider Risk Management in Microsoft Purview
  • Configured data theft and data leak policy templates
  • Tuned risk indicators and thresholds for accurate detection
  • Investigated insider risk alerts and built investigation timelines
  • Integrated IRM with DLP policies for coordinated enforcement
  • Connected HR signals to correlate risk with employment events

Next Steps

  • Next Lab: Run a Premium eDiscovery Investigation
  • Deploy Adaptive Protection to dynamically adjust DLP policies based on insider risk levels
  • Integrate insider risk findings with eDiscovery for legal investigations
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