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->> Day-21 AWS Policy and Governance Setup Using Terraform

Introduction In this blog, I share my experience implementing AWS Policy and Governance using Terraform as part of my #30DaysOfAWSTerraform journey. The goal was to build a secure-by-default foundation that enforces policies and…

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Introduction



In this blog, I share my experience implementing AWS Policy and Governance using Terraform as part of my #30DaysOfAWSTerraform journey. The goal was to build a secure-by-default foundation that enforces policies and continuously monitors compliance.



This project combines IAM guardrails, AWS Config, and a secure S3 bucket for configuration history. It helped me learn how prevention (IAM policies) and detection (Config rules) work together in real-world cloud governance.






Project Objective




  • Implement IAM policies for security guardrails

  • Enable AWS Config for continuous monitoring

  • Store configuration history securely in S3

  • Enforce tagging standards

  • Track compliance and violations

  • Automate governance using Terraform






Architecture





  • IAM Policies to prevent risky actions (MFA delete, TLS-only S3 access, required tags).


  • AWS Config to record configuration changes and evaluate compliance rules.


  • S3 Bucket to store AWS Config snapshots securely with encryption and versioning.



The IAM policies enforce guardrails upfront, AWS Config continuously checks resource compliance, and S3 stores audit data.








Implementation Steps:



Step 1: IAM Policy Setup

I created policies for:




  • MFA Delete Policy to block S3 object deletion without MFA

  • S3 Encryption in Transit to enforce HTTPS/TLS

  • Required Tags Policy to ensure resources include Environment and Owner



These policies matter because they stop risky actions before they happen.



Step 2: AWS Config Setup

I configured:




  • Config Recorder to track resource changes

  • Delivery Channel to store snapshots in S3

  • Recorder Status to start compliance tracking





Step 3: Adding Config Rules

I added AWS managed rules to validate governance:




  1. S3 Public Write Prohibited - Prevents public write access to S3 buckets

  2. S3 Encryption Enabled - Ensures server-side encryption on S3 buckets

  3. S3 Public Read Prohibited - Blocks public read access to S3 buckets

  4. EBS Volumes Encrypted - Verifies all EBS volumes are encrypted

  5. Required Tags - Checks for Environment and Owner tags

  6. IAM Password Policy - Enforces strong password requirements

  7. Root MFA Enabled - Ensures root account has MFA configured



Non-compliant means the resource violates a rule (for example, missing tags or encryption)





Step 5: Terraform Automation



Terraform let me define everything as code: IAM policies, the Config recorder, rules, and the S3 bucket. This made the setup repeatable and version controlled.



Benefits:




  • Faster deployments

  • Consistent governance

  • Easy auditing and updates



Step 6: Testing & Validation



I ran terraform plan and terraform apply, then verified compliance using AWS Config. The dashboard showed compliant and non-compliant resources clearly.







Monitoring Dashboard



AWS Config provides a central view of compliance status across rules and resources. It helps quickly identify violations and track fixes over time.



Cost Considerations



AWS Config is a paid service, so I kept the scope small and cleaned up resources when done using terraform destroy. This helps control costs while still learning the full workflow.





Conclusion



This project showed how governance can be automated with Terraform by combining IAM guardrails, AWS Config compliance checks, and secure S3 storage. It reinforced the value of policy‑as‑code, continuous monitoring, and defense‑in‑depth in real AWS environments. Most importantly, it mirrors how cloud teams enforce security at scale—making it a practical and recruiter‑relevant demonstration of cloud governance skills.





Reference:










Resources:








>> Connect With Me



If you enjoyed this post or want to follow my #30DaysOfAWSTerraformChallenge journey, feel free to connect with me here:



💼 LinkedIn: Amit Kushwaha



🐙 GitHub: Amit Kushwaha



📝 Hashnode / Amit Kushwaha



🐦 Twitter/X: Amit Kushwaha



Found this helpful? Drop a ❤️ and follow for more AWS and Terraform tutorials!



Questions? Drop them in the comments below! 👇






Happy Terraforming and Deploying!!

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