Your organization's compliance policy requires that encryption keys for Azure SQL Database are managed by the organization, not Microsoft. The keys must be stored in a Hardware Security Module (HSM). What should you implement?

Direct Answer (Verified)Reviewed by Sunny (Senior Cloud Engineer)

Correct Answer: Configure TDE with Customer-Managed Keys (CMK) stored in Azure Key Vault Managed HSM

Azure SQL TDE with Customer-Managed Keys (Bring Your Own Key โ€” BYOK) allows the organization to control the TDE protector key. Storing this key in Azure Key Vault Managed HSM provi...

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Real Exam ScenarioAzure Key Vault

Your organization's compliance policy requires that encryption keys for Azure SQL Database are managed by the organization, not Microsoft. The keys must be stored in a Hardware Security Module (HSM). What should you implement?

โœ“ Correct Answer & ExplanationAzure Key Vault

Correct Answer

Configure TDE with Customer-Managed Keys (CMK) stored in Azure Key Vault Managed HSM

Why This Answer Is Correct

Azure SQL TDE with Customer-Managed Keys (Bring Your Own Key โ€” BYOK) allows the organization to control the TDE protector key. Storing this key in Azure Key Vault Managed HSM provides FIPS 140-2 Level 3 validated hardware security module protection, satisfying both the customer-control and HSM requirements.

๐Ÿ“š What This Question Tests

This question evaluates your knowledge of Azure Key Vault โ€” a core concept tested in Microsoft Certified: Azure Security Engineer Associate (AZ-500). Understanding Azure Key Vault is essential for designing scalable, secure, and cost-effective cloud architectures. Mastery of this topic will help you answer scenario-based questions confidently on exam day.