What Is Microsoft Entra ID PIM (Privileged Identity Management)? A Complete Guide

Not every administrator needs permanent access to highly privileged roles such as Global Administrator, Exchange Administrator, or Security Administrator. Permanent administrative permissions increase security risks because compromised accounts can be used to make critical changes across an organization.

To address this challenge, Microsoft provides Privileged Identity Management (PIM) as part of Microsoft Entra ID.Microsoft Entra ID PIM enables organizations to grant administrative privileges only when required and automatically remove them when the task is completed.

In this guide, you'll learn what Microsoft Entra ID PIM is, how it works, its benefits, common use cases, and best practices for implementation.


What Is Microsoft Entra ID PIM?

Microsoft Entra ID Privileged Identity Management (PIM) is a security feature that provides just-in-time access to privileged roles and resources.

Instead of assigning permanent administrator permissions, users receive eligible access and activate their roles only when required.

PIM helps organizations:

  • Reduce standing privileges
  • Protect administrator accounts
  • Improve compliance
  • Track privileged access activity
  • Minimize attack surfaces

Why Organizations Need PIM

Many organizations still use permanently assigned administrator roles.

While convenient, this approach creates significant security risks.

Example Scenario

An IT administrator is permanently assigned the Global Administrator role.

If that account is compromised through:

  • Phishing
  • Malware
  • Credential theft
  • Password spraying

Attackers immediately gain unrestricted access to the Microsoft 365 environment.

PIM reduces this risk by requiring administrators to activate privileged roles only when needed.


How Microsoft Entra ID PIM Works

PIM introduces a different access model.

Traditional Access

  1. User receives Global Administrator role.
  2. User remains Global Administrator permanently.

PIM Access

  1. User is assigned as Eligible.
  2. User requests activation.
  3. MFA may be required.
  4. Approval may be required.
  5. Role becomes active temporarily.
  6. Role expires automatically.

This significantly reduces exposure to privilege-related attacks.


Key PIM Concepts

  • Eligible Assignment
  • The user can activate the role when required but does not hold the permissions continuously.

  • Active Assignment
  • The role is immediately active and available.

    This is typically reserved for emergency accounts or service accounts.

  • Activation
  • The process of temporarily enabling a privileged role.

  • Approval Workflow
  • Organizations can require manager or administrator approval before activation.

  • Time-Bound Access
  • Roles automatically expire after a configured period.


Supported Resources in PIM

PIM can manage access to several resource types.

Microsoft Entra Roles

Examples include:

  • Global Administrator
  • User Administrator
  • Security Administrator
  • Exchange Administrator
  • Teams Administrator

Azure Resources

  • Subscriptions
  • Resource Groups
  • Virtual Machines
  • Storage Accounts

Groups

PIM can manage privileged access to Microsoft 365 Groups and security groups.


Key Features of Microsoft Entra PIM

  • Just-In-Time Access
  • Administrators activate roles only when required.

  • Multi-Factor Authentication Enforcement
  • Organizations can require MFA before role activation.

  • Approval-Based Activation
  • Managers or security teams can approve privileged access requests.

  • Access Reviews
  • Regularly verify whether users still require privileged access.

  • Notifications and Alerts
  • Receive alerts when:

    • Roles are activated
    • Excessive privileges are detected
    • Suspicious activities occur
  • Audit Logs
  • Track every activation, approval, and privileged operation.


Benefits of Using PIM

  • Improved Security
  • Minimizes opportunities for attackers to exploit privileged accounts.

  • Reduced Standing Privileges
  • Administrators receive elevated access only when needed.

  • Better Compliance
  • Supports regulatory requirements by documenting privileged access activities.

  • Enhanced Visibility
  • Administrators can easily review privileged access assignments and activations.

  • Automated Governance
  • Combines well with Access Reviews and Identity Governance features.


Common PIM Use Cases

  • Global Administrator Protection
  • Keep Global Administrator access eligible instead of permanently assigned.

  • Temporary Project Access
  • Provide elevated permissions for migration projects and automatically remove them afterward.

  • Third-Party Administrator Access
  • Allow consultants and vendors temporary administrative access.

  • Security Operations
  • Security analysts can activate elevated permissions only during investigations.


PIM vs Permanent Administrator Roles

Feature Permanent Roles PIM
Always Active Yes No
Time-Limited Access No Yes
Approval Workflow No Yes
MFA Enforcement Optional Supported
Audit Visibility Limited Extensive
Security Risk Higher Lower

PIM Best Practices

  • Use Eligible Assignments Wherever Possible
  • Avoid permanent administrative assignments unless absolutely necessary.

  • Protect Global Administrators First
  • Begin by securing Global Administrator accounts.

  • Require MFA for Activation
  • This provides an additional layer of protection.

  • Configure Approval Workflows
  • Require approval for highly privileged roles.

  • Enable Notifications
  • Ensure security teams receive alerts about privileged access activities.

  • Conduct Regular Access Reviews
  • Remove unnecessary privileged assignments promptly.

Frequently Asked Questions

  • Is PIM included in Microsoft 365?
  • PIM typically requires Microsoft Entra ID P2 licensing, which is included with Microsoft 365 E5 and EMS E5.

  • Does PIM work with Azure resources?
  • Yes. PIM can manage access to Azure subscriptions, resource groups, and other Azure resources.

  • Can PIM require manager approval?
  • Yes. Organizations can configure approval workflows before role activation.

  • Does PIM support MFA?
  • Yes. MFA can be enforced as part of the activation process.


Common Mistakes to Avoid

  • Keeping Too Many Permanent Administrators
  • Organizations often deploy PIM but continue maintaining permanent Global Administrators.

  • Ignoring Access Reviews
  • Without reviews, unnecessary privileged assignments accumulate over time.

  • Not Enforcing MFA
  • MFA should always be required for privileged role activation.

  • Granting Excessive Role Duration
  • Keep activation periods as short as operationally possible.


Conclusion

Microsoft Entra ID Privileged Identity Management is one of the most effective security controls available to Microsoft 365 administrators. By providing just-in-time access, approval workflows, MFA enforcement, access reviews, and auditing capabilities, PIM significantly reduces the risks associated with privileged accounts.

Organizations seeking to improve Microsoft 365 security, strengthen compliance, and implement zero trust principles should consider PIM a foundational part of their identity security strategy.

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