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Organization Policies

Core Concepts

Organization Policies set constraints on resources across the entire organization. Guardrails that prevent misconfigurations and enforce compliance.

Key Principle: Centralized governance; restrictions that override individual permissions.

Organization Policies vs IAM

Feature Organization Policies IAM
Purpose What can/cannot be done Who can do what
Type Constraints/restrictions Permissions/allowances
Example “VMs must be in us-central1” “User can create VMs”
Precedence Overrides IAM Evaluated after org policies

Relationship: Org policies restrict, IAM permits within those restrictions

Policy Types

List Constraints

Allow or deny specific values

Examples:

  • Allowed VM instance types: constraints/compute.vmExternalIpAccess
  • Allowed resource locations: constraints/gcp.resourceLocations
  • Allowed service accounts: constraints/iam.allowedPolicyMemberDomains

Modes:

  • Allow list: Only specified values permitted
  • Deny list: Specified values prohibited
  • Allow all: No restrictions
  • Deny all: Completely prohibited

Boolean Constraints

Enable or disable features

Examples:

  • constraints/compute.disableSerialPortAccess: Disable serial port
  • constraints/sql.restrictPublicIp: Prevent Cloud SQL public IPs
  • constraints/iam.disableServiceAccountKeyCreation: No service account keys

Values: True (enforced) or False (not enforced)

Common Organization Policies

Resource Locations

Constraint: constraints/gcp.resourceLocations

Purpose: Restrict where resources can be created

Use case: GDPR compliance (EU only), data residency

Example: Only allow in:us-locations

Disable VM External IPs

Constraint: constraints/compute.vmExternalIpAccess

Purpose: Force VMs to use Cloud NAT or private IPs

Use case: Security (no public VMs), centralized egress

Example: Deny all external IPs

Restrict Service Account Key Creation

Constraint: constraints/iam.disableServiceAccountKeyCreation

Purpose: Prevent user-managed service account keys

Use case: Security (keys can be stolen), force Workload Identity

Example: Enforce true

Allowed Policy Member Domains

Constraint: constraints/iam.allowedPolicyMemberDomains

Purpose: Only allow IAM members from specific domains

Use case: Prevent external sharing

Example: Only allow @company.com and @company.gserviceaccount.com

Require OS Login

Constraint: constraints/compute.requireOsLogin

Purpose: Enforce OS Login for SSH (IAM-based)

Use case: Centralized access control, no SSH keys

Shielded VMs

Constraint: constraints/compute.requireShieldedVm

Purpose: Require Shielded VMs (Secure Boot, vTPM)

Use case: Security baseline, compliance

Uniform Bucket-Level Access

Constraint: constraints/storage.uniformBucketLevelAccess

Purpose: Require uniform bucket-level access (IAM only, no ACLs)

Use case: Simplified permissions, better security

Disable Service Account Key Upload

Constraint: constraints/iam.disableServiceAccountKeyUpload

Purpose: Prevent external service account key upload

Use case: Security (prevent stolen keys from other orgs)

Policy Hierarchy

Organization (broadest)
├── Folder
│   └── Project (narrowest)

Inheritance: Child inherits parent policies

Merging:

  • List constraints: Union of allowed values (most restrictive wins)
  • Boolean constraints: Cannot override parent (parent true = child must be true)

Example:

Org: Allow locations = [us-*, eu-*]
Folder: Allow locations = [us-central1, us-east1]
Result: Only us-central1, us-east1 (intersection)

Policy Evaluation

Order:

  1. Check organization policy constraints
  2. If allowed by org policy, check IAM permissions
  3. If both pass, action permitted

Example:

User has IAM permission to create VM
Org policy restricts locations to us-central1
User tries to create VM in europe-west1
Result: DENIED (org policy blocks)

When to Use

✅ Use Organization Policies When

  • Need to enforce governance across org
  • Compliance requirements (data residency, security)
  • Prevent costly mistakes (expensive resources)
  • Security baselines (Shielded VMs, no public IPs)
  • Consistent standards across projects
  • Prevent shadow IT

❌ Don’t Use When

  • Need per-resource control → IAM
  • Need to grant permissions → IAM
  • Temporary exceptions common → Difficult with org policies

Exceptions

Tags

Purpose: Allow exceptions via tags

Pattern:

  1. Define org policy with tag condition
  2. Tag resources that need exception
  3. Policy doesn’t apply to tagged resources

Use case: “No external IPs” except for bastion hosts (tagged)

Policy Override

Carefully consider: Exceptions reduce effectiveness

Better: Rethink policy or architecture

Implementation Strategy

Gradual Rollout

Phase 1: Audit mode (log violations, don’t block) Phase 2: Enforce on new resources Phase 3: Remediate existing violations Phase 4: Full enforcement

Testing

Dry run: Test policy on test folder/project first

Monitor: Check for blocked legitimate actions

Communication

Announce: Warn teams before enforcement

Document: Explain rationale and exceptions

Common Patterns

Data Residency (GDPR)

Org policy: Only EU locations
Result: All resources must be in EU
Compliance: GDPR data residency

Security Baseline

Policies:

- Require Shielded VMs
- Disable service account keys
- Require OS Login
- No public IPs on VMs
Result: Enforced security minimum

Cost Control

Policies:

- Allowed VM types (no expensive ones)
- Allowed GKE node types
- Disable APIs (prevent usage)
Result: Control cloud spend

Shadow IT Prevention

Policy: Only allow @company.com domain members
Result: Can't share with external users

Monitoring and Compliance

Policy Analyzer

Purpose: See which policies apply to resources

Use case: Troubleshooting, compliance verification

Compliance Reports

Integration: Security Command Center

Shows: Violations, compliance status

Audit Logs

Logs: Policy changes, constraint evaluations

Use for: Security audits, compliance evidence

Best Practices

Start Broad, Get Specific

Phase 1: Organization-level policies (baseline) Phase 2: Folder-level policies (teams/divisions) Phase 3: Project-level only if necessary

Document Rationale

Each policy: Why it exists, what it prevents

Exceptions: Document and regularly review

Regular Reviews

Quarterly: Review policies, remove obsolete

Annual: Comprehensive security review

Least Restrictive

Balance: Security vs developer productivity

Avoid: Overly restrictive policies that block legitimate work

Troubleshooting

“Permission Denied” Despite IAM

Check: Organization policies may be blocking

Tool: Policy Analyzer to see constraints

Policy Not Applying

Check: Inheritance, policy propagation delay

Verify: Resource hierarchy

Conflicts

Understand: Most restrictive wins

Resolution: Review parent policies

Limitations

  • Max 20 boolean constraints per resource
  • Max 20 list constraints per resource
  • Propagation delay (up to 15 minutes)
  • Cannot disable for single resource (use tags)
  • Some services don’t support all constraints

Organization Policies vs VPC Service Controls

Feature Organization Policies VPC Service Controls
Scope Resource constraints API perimeter security
Purpose Prevent misconfig Prevent data exfil
Example “No public IPs” “Data can’t leave VPC”
Granularity Resource types API calls

Use both: Complementary security layers

Exam Focus

Core Concepts

  • Constraints vs permissions
  • List vs boolean constraints
  • Policy hierarchy and inheritance
  • Org policies override IAM

Common Policies

  • Resource location restrictions
  • VM external IP disable
  • Service account key restrictions
  • Domain restrictions
  • Shielded VM requirements

Use Cases

  • Data residency (GDPR)
  • Security baselines
  • Cost control
  • Shadow IT prevention
  • Compliance enforcement

Architecture

  • Hierarchy (org → folder → project)
  • Policy inheritance
  • Exception handling (tags)
  • Gradual rollout strategy

Integration

  • IAM relationship (restrictive, not permissive)
  • VPC Service Controls (complementary)
  • Security Command Center
  • Policy Analyzer for troubleshooting

Best Practices

  • Start at org level
  • Document rationale
  • Test before full enforcement
  • Regular reviews
  • Balance security and productivity