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Microsoft 365 Permission Sprawl: How to Audit Access and Reduce Security Risks

John Koziaris
Chief Executive Officer

Permission sprawl in Microsoft 365 silently creeps into your environment, creating risks you might not spot until it’s too late. Every unchecked role, external share, or unchecked app consent widens your exposure and weakens your security posture. This Microsoft 365 permissions audit guide shows what to review now to tighten control, reduce risk, and protect your business before issues arise. 

Understanding Permission Sprawl

Unchecked permissions in Microsoft 365 can lead to significant security threats. When users have more access than necessary, it increases the risk of data breaches and other cyber threats.

Understanding Permission Sprawl
Unchecked permissions in Microsoft 365

Risks of Unchecked Permissions

Unchecked permissions can open the door to external threats. If users have access to sensitive information they don’t need, this can lead to accidental data leaks or intentional misuse. The more permissions there are, the harder it is to track and manage them effectively. This is why understanding and managing permissions is crucial for maintaining a secure environment.

Importance of Least Privilege Access

A key strategy in managing permissions is implementing least privilege access. This means granting users only the access necessary to perform their job functions. By doing so, you minimise potential security risks. This approach reduces the attack surface and helps prevent the misuse of sensitive information. In practice, it involves regularly reviewing and adjusting permissions to ensure that they align with current user roles and responsibilities.

Conducting a Microsoft 365 Permissions Audit

To manage permission sprawl effectively, conducting a thorough audit is essential. This process helps identify areas where permissions can be tightened to improve security.

Key Areas to Review

When conducting an audit, focus on key areas like user roles, app permissions, and external sharing settings. Review user roles to ensure they align with job requirements. Check app permissions to identify unnecessary access granted to third-party applications. It’s also important to evaluate external sharing settings, especially in platforms like SharePoint, to ensure sensitive data isn’t being shared inadvertently.

Role of Microsoft Entra ID Roles and PIM

Microsoft Entra ID Roles and Privileged Identity Management (PIM) play a crucial role in managing permissions. Entra ID Roles help define what actions users can perform, while PIM provides oversight by allowing temporary elevation of permissions as needed. This combination ensures that permissions are granted only when necessary and are revoked promptly, reducing the risk of misuse.

Enhancing Microsoft 365 Security

Beyond auditing, enhancing security measures can further protect your Microsoft 365 environment.

MFA and Conditional Access

Implementing Multi-Factor Authentication (MFA) adds an extra layer of security by requiring users to verify their identity through additional means. Coupled with Conditional Access, you can enforce access policies based on specific conditions, such as location or device. These measures significantly reduce the likelihood of unauthorized access, providing a stronger security posture.

SharePoint and Teams Governance

Proper governance of SharePoint and Teams is vital for maintaining control over shared resources. Establish clear policies for external sharing and regularly review access rights to ensure compliance with organisational standards. Ensure that your team understands these policies to prevent unintentional data exposure. Effective governance can mitigate risks and ensure that your collaboration tools are used securely and efficiently.

Step-by-Step Microsoft 365 Permissions Audit Checklist

Microsoft 365 Permission Sprawl: How to Audit Access and Reduce Security Risks

1. Review Global Administrators

  • List all Global Administrator accounts.
  • Verify each account still requires administrative access.
  • Remove unnecessary or dormant admin accounts.

2. Audit Microsoft Entra ID Roles

  • Review all assigned roles across the tenant.
  • Check for users with elevated permissions.
  • Confirm permissions align with current job responsibilities.

3. Enable and Review Privileged Identity Management (PIM)

  • Identify privileged roles that should use just-in-time access.
  • Review eligible versus active assignments.
  • Require approval and multi-factor authentication for role activation.

4. Audit Application Permissions

  • Review enterprise applications and app registrations.
  • Identify apps with broad permissions such as mailbox, file, or directory access.
  • Remove unused applications and revoke excessive permissions.

5. Check SharePoint and OneDrive Sharing

  • Review externally shared sites and files.
  • Identify anonymous or “Anyone” sharing links.
  • Remove outdated external access and sharing permissions.

6. Review Microsoft Teams Guest Access

  • List all guest users.
  • Confirm business justification for each guest account.
  • Remove guests who no longer require access.

7. Identify Inactive and Former Employee Accounts

  • Review disabled, dormant, or unlicensed accounts.
  • Ensure former employees have been fully offboarded.
  • Remove residual permissions and group memberships.

8. Review Microsoft 365 Groups

  • Check group ownership.
  • Remove unnecessary members.
  • Archive or delete unused groups.

9. Verify Multi-Factor Authentication Coverage

  • Confirm MFA is enabled for all users.
  • Prioritise administrators and users with access to sensitive data.
  • Investigate any MFA exclusions.

10. Review Conditional Access Policies

  • Confirm policies protect high-risk sign-ins.
  • Validate device, location, and risk-based controls.
  • Test policies regularly to ensure they work as intended.

11. Check External Collaboration Settings

  • Review B2B guest access settings.
  • Confirm external sharing policies match business requirements.
  • Restrict unnecessary external collaboration.

12. Document Findings and Remediate Risks

  • Record identified issues and recommended actions.
  • Prioritise high-risk permissions for immediate remediation.
  • Schedule quarterly or biannual permission reviews.
Quick Win
If you’re short on time, start with:
  1. Global Administrators
  2. Guest Users
  3. App Permissions
  4. SharePoint External Sharing
  5. Inactive Accounts

Frequently Asked Questions

What is permission sprawl?

Permission sprawl refers to the accumulation of excessive user permissions over time, which can lead to security vulnerabilities in an organisation’s IT environment.

How can I manage permissions in Microsoft 365?

Conduct regular audits, implement least privilege access, and use tools like Microsoft Entra ID Roles and Privileged Identity Management (PIM) to manage permissions effectively.

What role does MFA play in enhancing security?

Multi-Factor Authentication (MFA) adds an additional layer of security by requiring users to provide more than just a password when accessing sensitive data or systems, thereby reducing the risk of unauthorised access.

Why is governance important for SharePoint and Teams?

Effective governance ensures that data is shared securely and that access controls are maintained, reducing the risk of data breaches and compliance issues.

How often should I perform a Microsoft 365 permissions audit?

Most organisations should perform a permissions review at least quarterly. Businesses operating in regulated industries or handling sensitive data may benefit from monthly reviews of privileged access, guest users, and external sharing settings.

What are the biggest signs of permission sprawl?

Common warning signs include:
  • Large numbers of Global Administrators
  • Former employees still appearing in groups
  • Unused guest accounts
  • Excessive external sharing links
  • Applications with broad access permissions
  • Users who have accumulated multiple elevated roles over time

What is the principle of least privilege?

Least privilege is a security approach where users are given only the minimum level of access required to perform their jobs. This reduces the risk of accidental data exposure, insider threats, and compromised accounts.

What are the risks of excessive permissions?

Excessive permissions can lead to:
  • Data breaches
  • Accidental deletion or modification of information
  • Increased impact of ransomware attacks
  • Regulatory compliance failures
  • Unauthorised access to sensitive business data

Can guest users create security risks?

Yes. Guest users often remain in Teams, SharePoint sites, and Microsoft 365 Groups long after projects finish. Regular reviews help ensure external users only retain access for legitimate business purposes.

What is Privileged Identity Management (PIM)?

Privileged Identity Management is a Microsoft Entra feature that enables just-in-time access to privileged roles. Instead of providing permanent administrative access, users can elevate permissions only when needed and for a limited period.

Should service accounts have administrative privileges?

Only when absolutely necessary. Service accounts should follow the same least-privilege principles as user accounts and should be regularly reviewed, monitored, and protected with strong authentication controls where supported.

How do app permissions create risk?

Many third-party applications request access to email, files, calendars, or directory information. If not reviewed regularly, these permissions can provide attackers with persistent access to business data even after a user account has been secured.

Does Microsoft 365 provide tools to help manage permissions?

Yes. Microsoft 365 includes tools such as:
  • Microsoft Entra ID
  • Privileged Identity Management (PIM)
  • Access Reviews
  • Conditional Access
  • Microsoft Defender
  • Audit Logs and Reporting
These tools help organisations identify excessive permissions, monitor privileged access, and reduce security risk.

How does permission auditing support compliance

Regular permission reviews help organisations demonstrate access control practices required by many compliance frameworks, including ISO 27001, SMB1001, Essential Eight maturity programs, and industry-specific regulatory requirements.

What is the quickest way to reduce permission sprawl?

Start by reviewing:
  1. Global Administrators
  2. Guest Users
  3. External Sharing Links
  4. Application Permissions
  5. Former Employee Accounts
These areas typically provide the biggest security improvements with the least effort.

Is Permission Sprawl Putting Your Business at Risk?

Microsoft 365 permission sprawl can expose your organisation to unnecessary security risks.
alltasksIT helps businesses audit access, remove excessive permissions, and strengthen Microsoft 365 security across Entra ID, SharePoint, Teams, and OneDrive.
Complete the form and our team will contact you to discuss your environment and recommend the right security and governance approach.

Author

John Koziaris

CEO/Founder

Founder and Principal of alltasksIT with 30+ years IT experience, John has a broad and varied experience across cloud computing strategies.

John has been successfully realising IT and networking solutions for small to medium businesses for over 25 years.