Starting on May 3, 2024, Azure will start enabling root management groups for tenants who have not already done so. This will make it easier to apply Azure Policy best practices and reduce the initial configuration work required. If your tenant has not enabled management groups, a root management group will be created automatically, with all subscriptions becoming children of it. Notifications will be sent for the creation of the root management group and linking of subscriptions. A root management group is the highest level of the resource hierarchy, and no changes will be made to subscriptions themselves. Access to the root administration group will not be affected by this change. Management groups are used to efficiently manage policies and compliance for subscriptions, and Azure Policy is an important tool for helping resources meet organizational standards at scale. More information on management groups can be found on the Azure website.
Article Source
https://azure.microsoft.com/en-us/updates/azure-governance-update-management-group-update/
Update on Azure Governance: Introducing Management Groups in Microsoft Azure
