manage_service_principals

WHAT IT DOES

What manage_service_principals does on Microsoft 365 Core MCP Server

AI agents use manage_service_principals to create or update resources in Microsoft 365 Core MCP Server — usually the action step of a workflow, after the agent has gathered context. Every call changes real data in your Microsoft 365 Core MCP Server environment.

WHY IT NEEDS A POLICY

Why manage_service_principals needs a policy

Managing service principals involves creating, updating, and modifying application identities, permissions, and credentials in Azure AD. This is a Write operation with high severity because misconfiguration or misuse could grant excessive privileges to applications, expose credentials, or enable unauthorized access across the Microsoft 365 tenant.

From the tool's definition Manage service principals for application access including permissions, credentials, and enterprise applications

Attacks that exploit this kind of access

Recommended rule Ready

Verdict

manage_service_principals Rate-limited

manage_service_principals stays usable, but capped — an agent stuck in a loop can't make hundreds of changes a minute. Everything else on the server is denied unless you say otherwise.

View as policy code

policy.json

{
  "version": "1",
  "default": "deny",
  "tools": {
    "manage_service_principals": {
      "limits": [
        {
          "counter": "manage_service_principals_rate",
          "window": "minute",
          "max": 30,
          "scope": "grant"
        }
      ]
    }
  }
}

LIMIT THIS TOOL →

Instant setup, no code required.

PolicyLayer is an MCP gateway: every tool call is checked against your rule before it reaches Microsoft 365 Core MCP Server, so you can run agents against it safely.

FAQ

Questions about manage_service_principals

What does the manage_service_principals tool do? +

Manage service principals for application access including permissions, credentials, and enterprise applications. It is categorised as a Write tool in the Microsoft 365 Core MCP Server MCP Server, which means it can create or modify data. Consider rate limits to prevent runaway writes.

How do I enforce a policy on manage_service_principals? +

Register the Microsoft 365 Core MCP Server MCP server in PolicyLayer and add a rule for manage_service_principals: allow, deny, rate-limit, or require approval. Point your MCP client at the PolicyLayer proxy URL and the rule is enforced on every call, before it reaches Microsoft 365 Core MCP Server. Nothing to install.

What risk level is manage_service_principals? +

manage_service_principals is a Write tool with medium risk. Write tools should be rate-limited to prevent accidental bulk modifications.

Can I rate-limit manage_service_principals? +

Yes. Add a rate_limit block to the manage_service_principals rule in your PolicyLayer policy. For example, setting max: 10 and window: 60 limits the tool to 10 calls per minute. Rate limits are tracked per agent session and reset automatically.

How do I block manage_service_principals completely? +

Set action: deny in the PolicyLayer policy for manage_service_principals. The AI agent will receive a policy violation error and cannot call the tool. You can also include a reason field to explain why the tool is blocked.

What MCP server provides manage_service_principals? +

manage_service_principals is provided by the Microsoft 365 Core MCP Server MCP server (roycedamien/m365-core-mcp). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.