Microsoft 365 governance is the set of decisions, settings and records that control who can reach your firm’s data, from which devices, how long it is kept and how you would prove it. For a DFSA- or FSRA-regulated firm, a sound baseline is enforced multi-factor authentication, Conditional Access, managed devices, controlled external sharing, labelled and retained data, audit logging and least-privilege administration.
For most regulated firms, Microsoft 365 holds the email, documents, chat and calendars that make up client records and internal decisions. It is also an internet-facing service protected mainly by identity. That makes it both your most valuable system and, in a regulator’s eyes, a core part of your control environment.
The expectations you meet elsewhere (access control, multi-factor authentication, patching, monitoring and incident response) apply here too, and Microsoft is itself a third-party provider you need to understand. The split is simple: Microsoft secures the service, and you configure and govern your tenant.
Enrol laptops and phones in Microsoft Intune or an equivalent tool. Require disk encryption (BitLocker or FileVault), a screen lock and supported, updated operating systems, then use Conditional Access so only compliant devices reach firm data. For personal phones, app protection policies can separate firm data without managing the whole device. Decide what you allow and write it down.
Confirm the unified audit log is on and know how long your licence keeps it. Set alerts for high-risk events such as new mail-forwarding rules, admin role changes, mass downloads and sign-ins from unexpected places. Review Microsoft Secure Score monthly and record what you fixed, accepted or deferred, and why. Secure Score is a useful measurement, not a compliance certificate.
Many governance features depend on the licence. As a rough guide, Microsoft 365 Business Premium includes Conditional Access, Intune and Defender for Business, which covers much of what a small firm needs. Privileged identity management, advanced auditing and insider-risk tooling need higher tiers or add-ons. Microsoft changes its packaging, so check its current licensing guidance and map your control list to licences before you buy.
Record where your tenant’s data is stored and any regional commitments, and be ready to explain them to your regulator, auditors and clients. We carried out a cross-country Microsoft 365 migration to the UAE for an ADGM-based advisory and investment firm, taking regulatory requirements into account. Read the case study.
A sensible sequence for a firm starting from a basic set-up. Adapt it to your size and risks.
Last reviewed 19 September 2026. This guide is general information, not legal or regulatory advice. Rules change, so check the current text and take advice from your compliance officer or legal adviser before relying on it.
