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Phase 2: Hardening

Advanced governance phase for mature operations (6-12 months).

Overview

Phase 2 implements advanced security controls, monitoring integration, and adversarial testing to achieve steady-state governance operations.

Timeline: 6-12 months (after Phase 1) Outcome: Full control implementation, steady-state operations

Prerequisites

Before starting Phase 2, confirm you have the required licenses and admin roles:

Quarter 3 (Months 7-9): Advanced Security

Control 1.8: Runtime Protection

Purpose: Detect and respond to threats in real-time

Steps:

  1. Enable Microsoft Defender for Cloud Apps
  2. Configure Copilot Studio app connector
  3. Create alert policies:
  4. Unusual usage patterns
  5. Data exfiltration attempts
  6. Suspicious authentication
  7. Configure automated responses

Verification:

  • Connector configured
  • Policies active
  • Test alert fires correctly

Control 1.6: DSPM for AI

Purpose: Discover and protect sensitive data in AI contexts

Steps:

  1. Navigate to Microsoft Purview > Data Security Posture Management
  2. Enable DSPM for AI
  3. Configure sensitivity scanning
  4. Review discovered data exposures
  5. Remediate findings

Verification:

  • DSPM enabled
  • Scan results reviewed
  • Remediation tracked

Control 1.19: eDiscovery Configuration

Purpose: Enable legal hold and search for agent interactions

Steps:

  1. Navigate to Microsoft Purview > eDiscovery
  2. Create case template for AI agent investigations
  3. Test search capabilities
  4. Document procedures

Verification:

  • Case template created
  • Search finds agent interactions
  • Procedures documented

Control 1.22: Information Barriers (If Needed)

Purpose: Prevent information sharing between specific groups

Steps:

  1. Identify barrier requirements
  2. Configure segments in Entra
  3. Create barrier policies
  4. Test barrier enforcement

Verification:

  • Segments defined
  • Policies active
  • Test confirms barriers work

Quarter 4 (Months 10-12): Advanced Monitoring and Testing

Control 3.9: Microsoft Sentinel Integration

Purpose: Centralized security monitoring and threat detection

Steps:

  1. Navigate to Microsoft Sentinel workspace
  2. Enable Power Platform connector
  3. Create analytics rules:
  4. Agent configuration changes
  5. DLP violations
  6. Unusual access patterns
  7. High-risk activities
  8. Configure workbooks for visualization
  9. Set up automated response playbooks

Verification:

  • Connector configured
  • Analytics rules active
  • Workbooks displaying data
  • Test playbook executes

Control 2.20: Adversarial Testing

Purpose: Proactively test agent resilience to attacks

Steps:

  1. Document adversarial testing framework
  2. Define test scenarios:
  3. Prompt injection attempts
  4. Data extraction attempts
  5. Jailbreak attempts
  6. Social engineering
  7. Schedule regular testing (quarterly for Zone 3)
  8. Track findings and remediation

Verification:

  • Framework documented
  • First test completed
  • Findings tracked

Control 3.10: Hallucination Feedback Loop

Purpose: Monitor and improve output accuracy

Steps:

  1. Implement user feedback mechanism
  2. Create logging for flagged responses
  3. Establish review process
  4. Track accuracy trends
  5. Feed learnings into agent improvement

Verification:

  • Feedback mechanism active
  • Review process operational
  • Trends tracked

Control 2.11: Comprehensive Bias Testing

Purpose: Full fairness assessment program

Steps:

  1. Document comprehensive testing approach
  2. Define protected characteristics for testing
  3. Create test datasets
  4. Conduct quarterly assessments
  5. Document and remediate findings

Verification:

  • Testing program documented
  • Quarterly schedule established
  • Results tracked

Annual Governance Review

Full Framework Assessment

Conduct comprehensive review of all 71 controls:

  • Each control assessed for implementation status
  • Gaps identified and documented
  • Remediation plans created
  • Priority controls for next year identified

Regulatory Alignment Review

  • Review any new regulatory guidance
  • Assess framework alignment
  • Update mappings as needed
  • Brief legal and compliance

Technology Roadmap Review

  • Review Microsoft platform updates
  • Assess impact on governance
  • Update playbooks for portal changes
  • Plan for new capabilities

Governance Effectiveness Assessment

  • Review metrics and KPIs
  • Assess control effectiveness
  • Identify improvement opportunities
  • Update governance procedures

Steady-State Operations

Ongoing Activities

Activity Frequency Owner
Agent inventory reconciliation Weekly AI Governance Lead
DLP policy review Monthly Power Platform Admin
Security posture review Monthly CISO
Governance committee meeting Monthly AI Governance Lead
Bias testing Quarterly AI Governance Lead
Adversarial testing Quarterly Security Team
Comprehensive governance review Quarterly Governance Committee
Annual framework assessment Annual Governance Committee

Operational Documentation

Create and maintain:

  • Steady-state operations guide
  • Runbooks for common tasks
  • Escalation procedures
  • On-call rotation (if applicable)

Phase 2 Completion Checklist

Advanced Security

  • Runtime protection enabled
  • DSPM for AI configured
  • eDiscovery procedures documented
  • Information barriers (if needed)

Advanced Monitoring

  • Sentinel integration complete
  • Analytics rules active
  • Response playbooks configured
  • Hallucination feedback operational

Advanced Testing

  • Adversarial testing program established
  • Comprehensive bias testing operational
  • Quarterly testing schedule confirmed

Steady-State Operations

  • All 71 controls assessed
  • Gaps documented with remediation plans
  • Operations guide created
  • Ongoing cadence established

Success Criteria

Phase 2 is complete when:

  1. Runtime protection is detecting threats
  2. Sentinel integration provides centralized monitoring
  3. Adversarial testing program is operational
  4. All 71 controls have been assessed
  5. Steady-state operations documentation is complete
  6. Annual governance review has been conducted

Continuous Improvement

After Phase 2, governance enters steady-state with focus on:

  • Continuous monitoring and response
  • Regular control testing and validation
  • Platform updates and playbook maintenance
  • Regulatory change management
  • Ongoing training and awareness

Last Updated: January 2026 FSI Agent Governance Framework v1.2