Control 2.15: Environment Routing and Auto-Provisioning

Overview

Control ID: 2.15 Control Name: Environment Routing and Auto-Provisioning Regulatory Reference: OCC 2011-12 (operational risk), FINRA 3110 (supervision), GLBA 501(b) Setup Time: 1-2 hours initial setup

Purpose

Environment routing ensures that makers are automatically directed to appropriately governed Power Platform environments based on their security group membership, preventing the creation of ungoverned "shadow AI" in the default environment. This is critical for financial services organizations to maintain regulatory compliance and operational control over AI agent development and deployment.

Description

Environment routing automatically directs makers to appropriate Power Platform environments based on security group membership, preventing unauthorized creation of agents and apps in the default environment. This is a critical control for preventing "shadow AI" - unauthorized agent creation outside governed environments.

See Environment routing for detailed capabilities.

Key Capabilities

Capability	Description	FSI Relevance
Automatic maker routing	Direct makers to governed environments	Prevents shadow AI
Security group-based rules	Route by AD group membership	Role-based governance
Resource type control	Enable routing per resource type	Granular control
Priority-based rules	Up to 25 rules with priority ordering	Complex org structures
Developer environment provisioning	Auto-create personal dev environments	Controlled innovation

Critical Limitation: Default Environment Fallback

Important - Routing Does NOT Block Default Environment Access

When environment routing is enabled but no routing rule matches a user, the user is routed to the Default environment. Per Microsoft Learn documentation: "If no rule matches, or if environment routing isn't turned on, the maker is routed to the default environment." (Source)

This means:

Environment routing alone is insufficient to prevent access to the Default environment
You must either:
Ensure routing rules cover all user populations (use an "Everyone" catch-all rule), OR
Implement "Sterile Default Environment" controls (DLP blocking + sharing restrictions)

Recommended Approach for FSI:

Scenario	Routing Configuration	Additional Controls
Partial coverage	Rules for specific groups only	MUST implement Default environment DLP blocking
Full coverage	Include "Everyone" catch-all rule at lowest priority	Recommended: Still implement Default environment DLP as defense-in-depth

Example "Everyone" Catch-All Rule:

Priority	Security Group	Environment Group	Purpose
(Lowest)	Everyone	Personal Productivity (Developer)	Catch-all for users not matched by higher-priority rules

See Control 1.1: Restrict Agent Publishing for the "Sterile Default Environment Strategy" including DLP channel blocking.

Prerequisites

Primary Owner Admin Role: Power Platform Admin Supporting Roles: Environment Admin

Licenses Required

License	Purpose	Required For
Power Apps Premium	Environment routing capabilities	All routed environments
Copilot Studio	Agent creation and governance	Agent routing
Power Automate Premium	Flow routing capabilities	Flow governance
Power Platform Admin	Admin center access	Configuration

Permissions Required

Role	Purpose	Assignment Method
Power Platform Admin	Configure routing rules	Entra ID / M365 Admin
Global Admin	Full tenant access	Entra ID
Dynamics 365 Admin	Environment management	M365 Admin Center

Dependencies

Dependency	Description	Verification
Environment Groups	Routing targets environment groups	Check PPAC → Environment groups
Security Groups	AD groups for routing rules	Check Entra ID → Groups
Managed Environments	Target environments should be managed	Check PPAC → Environments
DLP Policies	Data policies in target environments	Check PPAC → Data policies

Pre-Setup Checklist

[ ] Environment groups created and configured
[ ] Security groups identified for routing rules
[ ] Target environments are Managed Environments
[ ] DLP policies applied to target environment groups
[ ] Routing policy documented and approved
[ ] Communication plan for makers prepared

Governance Levels

Level 1 - Baseline

Requirement	Configuration
Routing enabled	Copilot Studio routing enabled
Default rule	Route all makers ("Everyone") to developer environments
Documentation	Routing policy documented

Minimum requirements:

Enable environment routing for Copilot Studio
Create at least one routing rule
Communicate policy to makers

Level 2-3 - Recommended

Requirement	Configuration
All resource types	Routing enabled for Power Apps, Flows, and Copilot Studio
Security group rules	Different groups routed to appropriate environment groups
Governance alignment	Rules map to personal/team/enterprise environment groups
Monitoring	Track routing effectiveness

FSI recommendations:

Create separate rules for different business units
Route compliance-sensitive groups to team/enterprise environments
Enable routing for all resource types to prevent gaps

Level 4 - Regulated/High-Risk

Requirement	Configuration
Comprehensive routing	All resource types, all makers routed
No default environment access	Block direct creation in default environment
Audit trail	Log all routing decisions
Exception process	Documented process for routing exceptions

FSI requirements:

Zero tolerance for shadow AI in default environment
All routing rules documented and approved
Regular review of routing effectiveness

Setup & Configuration

Step 1: Access Environment Routing

Open Power Platform Admin Center
Navigate to Manage → Environment groups
Click Environment routing in the toolbar (opens "Create and manage environment routing rules" panel)

Step 2: Enable Resource Types

In the "Turn on environment routing for" section, enable routing for:

Resource Type	Checkbox	Recommendation
Power Apps	☑️	Enable for all zones
Power Automate cloud flows	☑️	Enable for all zones
Power Automate desktop flows	☑️	Enable if using RPA
Copilot Studio	☑️	Critical - Enable for agent governance

FSI Recommendation

Enable all resource types to prevent governance gaps. Makers may create flows or apps that interact with agents.

Step 3: Create Routing Rules

Click + New rule to create a routing rule:

Rule Name: Auto-generated or custom name
Security Group: Select AD security group (or "Everyone")
Environment Group: Select target environment group

Rule structure:

Field	Description	Example
Rule Name	Identifier for the rule	"Route-Compliance-Team"
Priority	Processing order (1 = first)	1, 2, 3...
Security Group	AD group to match	"Compliance Department"
Environment Group	Destination for matched makers	"Team Collaboration"

Step 4: Configure Priority Order

Rules are processed in priority order (1 = highest priority):

Use ↑ and ↓ arrows to reorder rules
More specific rules should have higher priority
"Everyone" rule should be lowest priority (catch-all)

Example priority structure:

Priority	Security Group	Environment Group	Rationale
1	IT-Admins	Enterprise Managed	Admins need production access
2	Compliance-Team	Team Collaboration (Compliance)	Compliance-specific environment
3	Development-Team	Team Collaboration (Development)	Dev team environment
4	Everyone	Personal Productivity (Developer)	Default for all others

Step 5: Save and Verify

Review all rules and priorities
Close the panel (changes auto-save)
Test by having a user create a new resource
Verify they are routed to the correct environment

Recommended Rule Configurations

Basic Configuration (Small Organization)

Priority	Security Group	Environment Group
1	Everyone	Developer Environments

Effect: All makers routed to personal developer environments.

Standard Configuration (Medium Organization)

Priority	Security Group	Environment Group
1	Power-Platform-Admins	Enterprise Managed
2	Business-Analysts	Team Collaboration
3	Everyone	Personal Productivity (Developer)

Enterprise Configuration (Large FSI Organization)

Priority	Security Group	Environment Group
1	Platform-Admins	Enterprise Production
2	Compliance-Officers	Compliance Environments
3	Trading-Desk	Trading Environments
4	Wealth-Management	Wealth Environments
5	Operations	Operations Environments
6	IT-Development	Development Environments
7	Everyone	Personal Developer

Shadow AI Prevention

Environment routing is the primary control for preventing shadow AI:

What is Shadow AI?

Shadow AI occurs when makers create agents, apps, or flows in the default environment outside of governance controls. This creates:

Compliance risk: Unmonitored AI interactions with customer data
Security risk: Ungoverned data access and sharing
Operational risk: Unsupported, undocumented solutions

How Routing Prevents Shadow AI

flowchart LR
    A[Maker creates agent] --> B{Routing enabled?}
    B -->|Yes| C[Match security group]
    C --> D[Route to governed environment]
    B -->|No| E[Created in default environment]
    E --> F[Shadow AI risk]
    D --> G[Governance controls applied]

Verification

To verify shadow AI prevention:

Check default environment for new resources
Review routing logs (if available)
Monitor environment group resource counts
Conduct periodic audits of default environment

Developer Environment Auto-Provisioning

When routing to "Developer Environments" group:

Feature	Behavior
Auto-creation	Personal developer environment created on first use
Naming	Named after the user (e.g., "John Smith's Environment")
Limit	Up to 3 developer environments per user
Governance	Inherits environment group rules

See Create developer environment for details.

FSI Considerations

Developer environments count toward tenant capacity
Consider lifecycle management for inactive environments
Apply personal productivity governance rules to the developer environment group

PowerShell Configuration

Get Environment Routing Configuration

# Connect to Power Platform
Connect-PowerPlatform

# Get all environment groups (routing targets)
$envGroups = Get-AdminPowerAppEnvironmentGroup

foreach ($group in $envGroups) {
    Write-Host "`n=== $($group.DisplayName) ===" -ForegroundColor Cyan
    Write-Host "Group ID: $($group.EnvironmentGroupId)"
    Write-Host "Description: $($group.Description)"

    # List environments in group
    $envs = Get-AdminPowerAppEnvironment | Where-Object {
        $_.Properties.environmentGroup -eq $group.EnvironmentGroupId
    }
    Write-Host "Environments in group: $($envs.Count)"
}

Create Routing Rules (Note: Primarily Portal)

Note

Environment routing rules are primarily configured through the Power Platform Admin Center portal. PowerShell can be used to prepare and verify the configuration.

# Verify security groups exist before creating routing rules
function Test-RoutingSecurityGroups {
    param(
        [string[]]$GroupNames
    )

    foreach ($groupName in $GroupNames) {
        $group = Get-AzureADGroup -SearchString $groupName
        if ($group) {
            Write-Host "✓ Security group found: $groupName ($($group.ObjectId))" -ForegroundColor Green
        } else {
            Write-Host "✗ Security group NOT found: $groupName" -ForegroundColor Red
        }
    }
}

# Example: Verify groups for FSI routing
$fsiGroups = @(
    "Power-Platform-Admins",
    "Compliance-Officers",
    "Trading-Desk",
    "Wealth-Management",
    "IT-Development"
)
Test-RoutingSecurityGroups -GroupNames $fsiGroups

Get Security Groups for Routing

# List all security groups suitable for routing rules
Get-AzureADGroup -All $true | Where-Object {
    $_.SecurityEnabled -eq $true -and $_.MailEnabled -eq $false
} | Select-Object DisplayName, ObjectId, Description | Format-Table -AutoSize

# Get members of a specific routing group
function Get-RoutingGroupMembers {
    param([string]$GroupName)

    $group = Get-AzureADGroup -SearchString $GroupName | Select-Object -First 1
    if ($group) {
        $members = Get-AzureADGroupMember -ObjectId $group.ObjectId
        Write-Host "`nMembers of $GroupName ($($members.Count) total):" -ForegroundColor Cyan
        $members | Select-Object DisplayName, UserPrincipalName | Format-Table
    }
}

Get-RoutingGroupMembers -GroupName "Compliance-Officers"

Export Routing Configuration

# Export environment routing configuration for compliance documentation
function Export-RoutingConfiguration {
    param([string]$OutputPath = ".\EnvironmentRoutingConfig.json")

    $config = @{
        ExportDate = Get-Date -Format "yyyy-MM-dd HH:mm:ss"
        EnvironmentGroups = @()
        SecurityGroups = @()
    }

    # Get environment groups
    $envGroups = Get-AdminPowerAppEnvironmentGroup
    foreach ($group in $envGroups) {
        $envs = Get-AdminPowerAppEnvironment | Where-Object {
            $_.Properties.environmentGroup -eq $group.EnvironmentGroupId
        }

        $config.EnvironmentGroups += @{
            Name = $group.DisplayName
            Id = $group.EnvironmentGroupId
            Description = $group.Description
            EnvironmentCount = $envs.Count
            Environments = $envs | Select-Object DisplayName, EnvironmentName
        }
    }

    # Export to JSON
    $config | ConvertTo-Json -Depth 5 | Out-File -FilePath $OutputPath -Encoding UTF8
    Write-Host "Exported routing configuration to $OutputPath" -ForegroundColor Green
}

Export-RoutingConfiguration -OutputPath ".\FSI-Routing-Config.json"

Monitor Routing Effectiveness

# Monitor for shadow AI in default environment
function Get-DefaultEnvironmentResources {
    # Get the default environment
    $defaultEnv = Get-AdminPowerAppEnvironment | Where-Object {
        $_.EnvironmentType -eq "Default"
    } | Select-Object -First 1

    if ($defaultEnv) {
        Write-Host "=== Default Environment Analysis ===" -ForegroundColor Yellow
        Write-Host "Environment: $($defaultEnv.DisplayName)"

        # Get apps in default environment (potential shadow AI indicators)
        $apps = Get-AdminPowerApp -EnvironmentName $defaultEnv.EnvironmentName
        Write-Host "Power Apps: $($apps.Count)" -ForegroundColor $(if ($apps.Count -gt 10) { "Red" } else { "Green" })

        # Get flows in default environment
        $flows = Get-AdminFlow -EnvironmentName $defaultEnv.EnvironmentName
        Write-Host "Flows: $($flows.Count)" -ForegroundColor $(if ($flows.Count -gt 20) { "Red" } else { "Green" })

        # Report recent creations (last 30 days) - potential routing bypasses
        $recentDate = (Get-Date).AddDays(-30)
        $recentApps = $apps | Where-Object { $_.CreatedTime -gt $recentDate }

        if ($recentApps.Count -gt 0) {
            Write-Host "`nRecent apps created in default environment (last 30 days):" -ForegroundColor Red
            $recentApps | Select-Object DisplayName, @{N='Creator';E={$_.Owner.displayName}}, CreatedTime | Format-Table
        } else {
            Write-Host "`nNo new apps in default environment (last 30 days) - Routing effective!" -ForegroundColor Green
        }
    }
}

Get-DefaultEnvironmentResources

Financial Sector Considerations

Regulatory Mapping

Regulation	Requirement	Environment Routing Support
OCC 2011-12	Operational risk management for technology systems	Routes makers to governed environments with appropriate controls
FINRA 3110	Supervisory system for business activities	Enforces routing rules based on role/group membership
GLBA 501(b)	Administrative safeguards for customer information	Directs makers to environments with proper data policies
SOX 302/404	Internal controls over financial reporting	Audit trail of routing decisions and environment assignments

Governance Tier Routing Configuration

Governance Tier	Target Environment Group	Security Groups	Routing Priority
Enterprise Managed	Production Environments	Platform-Admins, Senior-Compliance	1 (Highest)
Team Collaboration	Team/Department Environments	Compliance-Officers, Trading-Desk, Operations	2-5
Personal Productivity	Developer Environments	Everyone (catch-all)	Lowest

FSI Example Configuration

# FSI Environment Routing Configuration Example
# For compliance documentation and implementation reference

Routing_Configuration:
  Organization: "FSI Financial Services"
  ConfigurationDate: "2025-01-15"

  Resource_Types_Enabled:
    Power_Apps: true
    Power_Automate_Cloud_Flows: true
    Power_Automate_Desktop_Flows: true
    Copilot_Studio: true  # Critical for agent governance

  Routing_Rules:
    - Priority: 1
      Name: "Route-Platform-Admins"
      Security_Group: "Power-Platform-Admins"
    Target_Environment_Group: "Enterprise Managed - Production"
      Rationale: "Admins need production access for management"

    - Priority: 2
      Name: "Route-Compliance-Team"
      Security_Group: "Compliance-Officers"
    Target_Environment_Group: "Team Collaboration - Compliance"
      Rationale: "Compliance-specific environment with enhanced controls"

    - Priority: 3
      Name: "Route-Trading-Operations"
      Security_Group: "Trading-Desk"
    Target_Environment_Group: "Team Collaboration - Trading"
      Rationale: "Trading-specific data policies and connectors"

    - Priority: 4
      Name: "Route-Wealth-Management"
      Security_Group: "Wealth-Management-Team"
    Target_Environment_Group: "Team Collaboration - Wealth"
      Rationale: "Client data protection requirements"

    - Priority: 5
      Name: "Route-IT-Development"
      Security_Group: "IT-Development"
    Target_Environment_Group: "Team Collaboration - Development"
      Rationale: "Development and testing environment"

    - Priority: 6
      Name: "Route-Everyone-Default"
      Security_Group: "Everyone"
    Target_Environment_Group: "Personal Productivity - Developer"
      Rationale: "Catch-all for personal development, auto-provision dev environments"

  Shadow_AI_Prevention:
    Default_Environment_Monitoring: "Weekly"
    Alert_Threshold: 5  # Alert if more than 5 new resources in default env
    Audit_Frequency: "Monthly"

  Examination_Evidence:
    - "Routing rules screenshot from PPAC"
    - "Security group membership lists"
    - "Default environment audit reports"
    - "Routing effectiveness metrics"

Examination Considerations

Regulators may ask:

How do you prevent unauthorized AI agent creation?
What controls exist to ensure agents are created in governed environments?
How do you monitor for shadow AI?
What is your process for routing exceptions?

Documentation: Maintain evidence of routing configuration, rules, and periodic audits.

Zone-Specific Configuration

Zone 1 (Personal Productivity):

Apply a baseline minimum of Environment Routing and Auto-Provisioning controls that impacts tenant-wide safety (where applicable), and document any exceptions for personal agents.
Avoid expanding scope beyond the user’s own data unless explicitly justified.
Rationale: reduces risk from personal use while keeping friction low; legal/compliance can tighten later.

Zone 2 (Team Collaboration):

Apply the control for shared agents and shared data sources; require an identified owner and an approval trail.
Validate configuration in a pilot environment before broader rollout; retain evidence (screenshots/exports/logs).
Rationale: shared agents increase blast radius; controls must be consistently applied and provable.

Zone 3 (Enterprise Managed):

Require the strictest configuration for Environment Routing and Auto-Provisioning controls and enforce it via policy where possible (not manual-only).
Treat changes as controlled (change ticket + documented testing); retain evidence (screenshots/exports/logs).
Rationale: enterprise agents handle the most sensitive content and are the highest audit/regulatory risk.

Verification & Testing

Step	Action	Expected Result
1	Navigate to Environment routing	Panel opens with current rules
2	Verify resource types enabled	All relevant types checked
3	Review rule priorities	Rules in correct order
4	Test as different users	Users routed to correct environments
5	Check default environment	No new unauthorized resources

Test Scenarios

Scenario	Test User	Expected Destination
Admin creates agent	Platform Admin	Enterprise Production
Analyst creates app	Business Analyst	Team Environment
New employee creates flow	No specific group	Personal Developer

Integration with Other Controls

Control	Integration
2.1 Managed Environments	Routed environments should be managed
2.2 Environment Groups	Routing targets environment groups
1.4 Connector Policies	DLP applies in routed environments

Best Practice: Configure environment groups and their rules BEFORE enabling routing. This ensures makers are routed to properly governed environments.

Troubleshooting & Validation

Issue: Users Not Being Routed to Expected Environment

Symptoms: Makers end up in wrong environment or default environment

Solutions:

Verify user is member of the correct security group in Entra ID
Check rule priority order - more specific rules should have higher priority
Confirm the routing rule is targeting the correct environment group
Wait 15-30 minutes for group membership changes to propagate
Have user sign out and back in to refresh group claims

Issue: Routing Rules Not Appearing

Symptoms: Cannot see or create routing rules in admin center

Solutions:

Verify you have Power Platform Admin or Global Admin role
Check that environment groups exist (routing requires environment groups)
Ensure tenant has required licensing (Power Apps Premium)
Try accessing from a different browser or incognito mode
Clear browser cache and cookies

Issue: Resource Type Routing Not Working

Symptoms: Routing works for some resource types but not others

Solutions:

Verify the specific resource type checkbox is enabled in routing settings
Check if maker has direct environment access bypassing routing
Confirm DLP policies aren't blocking creation in target environment
Review if maker is Environment Admin (admins may bypass routing)
Test with a non-admin user account

Issue: Developer Environment Not Auto-Provisioned

Symptoms: User routed to Developer Environments group but no environment created

Solutions:

Check tenant has available environment capacity
Verify user hasn't exceeded 3 developer environment limit
Confirm user has appropriate license for environment creation
Check for any tenant-wide restrictions on environment creation
Review audit logs for failed environment creation attempts

Issue: Shadow AI Detected Despite Routing

Symptoms: New resources appearing in default environment

Solutions:

Verify all resource types are enabled for routing (apps, flows, Copilot Studio)
Check if resources were created before routing was enabled
Review if users have direct maker access to default environment
Audit security group memberships - ensure all makers are covered
Consider blocking direct creation in default environment via environment settings

Additional Resources

Environment Routing Overview - Core routing concepts
Environment Groups - Routing targets
Create Developer Environments - Auto-provisioning details
Managed Environments Overview - Target environment governance
Security Groups and Teams - Group-based access control
Power Platform Admin PowerShell - Automation and monitoring

Control	Relationship
Control 2.1: Managed Environments	Target environments should be Managed Environments for enhanced governance
Control 2.2: Environment Groups	Routing targets environment groups with governance-tier-based rules
Control 1.1: Restrict Agent Publishing	Complements routing with publishing controls
Control 1.4: Advanced Connector Policies	DLP policies apply in routed environments

Support & Questions

For implementation support or questions about this control, contact:

AI Governance Lead (governance direction)
Compliance Officer (regulatory requirements)
Power Platform Admin (technical setup)

Updated: Dec 2025
Version: v1.0 Beta (Dec 2025)
UI Verification Status: ❌ Needs verification

Control 2.15: Environment Routing and Auto-Provisioning

Overview

Purpose

Description

Key Capabilities

Critical Limitation: Default Environment Fallback

Prerequisites

Licenses Required

Permissions Required

Dependencies

Pre-Setup Checklist

Governance Levels

Level 1 - Baseline

Level 2-3 - Recommended

Level 4 - Regulated/High-Risk

Setup & Configuration

Step 1: Access Environment Routing

Step 2: Enable Resource Types

Step 3: Create Routing Rules

Step 4: Configure Priority Order

Step 5: Save and Verify

Recommended Rule Configurations

Basic Configuration (Small Organization)

Standard Configuration (Medium Organization)

Enterprise Configuration (Large FSI Organization)

Shadow AI Prevention

What is Shadow AI?

How Routing Prevents Shadow AI

Verification

Developer Environment Auto-Provisioning

FSI Considerations

PowerShell Configuration

Get Environment Routing Configuration

Create Routing Rules (Note: Primarily Portal)

Get Security Groups for Routing

Export Routing Configuration

Monitor Routing Effectiveness

Financial Sector Considerations

Regulatory Mapping

Governance Tier Routing Configuration

FSI Example Configuration

Examination Considerations

Zone-Specific Configuration

Verification & Testing

Test Scenarios

Integration with Other Controls

Troubleshooting & Validation

Issue: Users Not Being Routed to Expected Environment

Issue: Routing Rules Not Appearing

Issue: Resource Type Routing Not Working

Issue: Developer Environment Not Auto-Provisioned

Issue: Shadow AI Detected Despite Routing

Additional Resources

Related Controls

Support & Questions