Defines the how the resources are created and configured
One or more policy definitions are grouped into an Azure Initiative Definition, to control the scope of your policies and evaluate the compliance of your resources.
Consider:
Consider deployable resources. Specify the resource types that your organization can deploy by using Azure Policy. You can specify the set of virtual machine SKUs that your organization can deploy.
Consider location restrictions. Restrict the locations your users can specify when deploying resources. You can choose the geographic locations or regions that are available to your organization.
Consider rules enforcement. Enforce compliance rules and configuration options to help manage your resources and user options. You can enforce a required tag on resources and define the allowed values.
Consider inventory audits. Use Azure Policy with Azure Backup service on your VMs and run inventory audits.