Function App has no managed identity configured

Use managed identity for supported Azure resource access to reduce credentials stored by functions.

Description

When a Function App directly manages connection strings or access keys for other Azure resources, those credentials can be exposed or missed during replacement. Managed identity supports authentication to compatible services without a separate application secret. Its absence alone does not prove that secrets are used or exposed.

Potential impact

  • Credentials stored in code or settings can be exposed.
  • Credential replacement and revocation can be missed.
  • Managing access permissions for individual functions can require more work.

Remediation

For supported connections, configure an appropriate SystemAssigned or UserAssigned ID in the identity block. Grant only the required target permissions and configure the function to actually use managed identity tokens. Verify operation before removing and revoking replaced secrets.

Examples

This legacy AzureRM 3.x azurerm_function_app example adds a system-assigned managed identity. Required storage settings, target permissions and token-using code are omitted.

Before

hcl
resource "azurerm_function_app" "example" {
  name                = "test-azure-functions"
  location            = azurerm_resource_group.example.location
  resource_group_name = azurerm_resource_group.example.name
  app_service_plan_id = azurerm_app_service_plan.example.id
}

After

hcl
resource "azurerm_function_app" "example" {
  name                = "test-azure-functions"
  location            = azurerm_resource_group.example.location
  resource_group_name = azurerm_resource_group.example.name
  app_service_plan_id = azurerm_app_service_plan.example.id

  identity {
    type = "SystemAssigned"
  }
}

The after example attaches a SystemAssigned identity. This does not itself grant target permissions or automatically replace existing connection strings. Managed identity is also separate from authenticating callers of the function.

References