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An Implementation of the Microsoft Agent Governance Toolkit for Safe AI Agent Tool Use with Policies, Approvals, Audit Logs, and Risk Controls

May 31, 2026
in AI & Technology
Reading Time: 3 mins read
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An Implementation of the Microsoft Agent Governance Toolkit for Safe AI Agent Tool Use with Policies, Approvals, Audit Logs, and Risk Controls
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scenarios = [
   {
       "name": "Safe database read",
       "tool": research_db,
       "kwargs": {
           "table": "customers",
           "operation": "select",
           "type": "select",
           "sensitivity": "medium"
       }
   },
   {
       "name": "Blocked destructive database action",
       "tool": research_db,
       "kwargs": {
           "table": "customers",
           "operation": "drop",
           "type": "drop_table",
           "sensitivity": "critical"
       }
   },
   {
       "name": "External email requiring approval",
       "tool": research_email,
       "kwargs": {
           "to": "[email protected]",
           "recipient_domain": "example.com",
           "subject": "Quarterly update",
           "body": "Sharing a non-confidential quarterly update.",
           "type": "send_email",
           "sensitivity": "medium"
       }
   },
   {
       "name": "External email denied due to approval rejection",
       "tool": research_email,
       "kwargs": {
           "to": "[email protected]",
           "recipient_domain": "example.com",
           "subject": "Confidential strategy",
           "body": "This contains confidential strategy.",
           "type": "send_email",
           "sensitivity": "critical"
       }
   },
   {
       "name": "Safe sandbox shell command",
       "tool": ops_shell,
       "kwargs": {
           "command": "echo Agent governance is active",
           "type": "shell_exec",
           "sensitivity": "low"
       }
   },
   {
       "name": "Dangerous shell command blocked",
       "tool": ops_shell,
       "kwargs": {
           "command": "rm -rf /content/something",
           "type": "shell_exec",
           "sensitivity": "critical"
       }
   },
   {
       "name": "Low-trust agent blocked from sensitive data",
       "tool": shadow_db,
       "kwargs": {
           "table": "executive_compensation",
           "operation": "select",
           "type": "select",
           "sensitivity": "critical"
       }
   },
   {
       "name": "Financial transfer requiring approval",
       "tool": finance_transfer,
       "kwargs": {
           "amount": 2500,
           "destination": "vendor-123",
           "type": "transfer_money",
           "sensitivity": "high"
       }
   },
   {
       "name": "Large financial transfer rejected",
       "tool": finance_transfer,
       "kwargs": {
           "amount": 15000,
           "destination": "vendor-999",
           "type": "transfer_money",
           "sensitivity": "critical"
       }
   },
]
results = []
for scenario in scenarios:
   try:
       output = scenario["tool"](**scenario["kwargs"])
       results.append({
           "scenario": scenario["name"],
           "status": "executed",
           "output": output
       })
   except Exception as e:
       results.append({
           "scenario": scenario["name"],
           "status": "blocked_or_pending",
           "error": str(e)
       })
audit_df = audit_log.to_dataframe()
display_cols = [
   "timestamp",
   "agent_name",
   "tool_name",
   "decision",
   "matched_rule",
   "severity",
   "reason",
   "record_hash"
]
display(audit_df[display_cols])
test_cases = [
   {
       "name": "drop_table must be denied",
       "identity": research_agent,
       "tool_name": "query_database",
       "action": {"type": "drop_table", "sensitivity": "critical", "autonomous": True},
       "expected": "deny"
   },
   {
       "name": "safe select should be allowed",
       "identity": research_agent,
       "tool_name": "query_database",
       "action": {"type": "select", "sensitivity": "low", "autonomous": True},
       "expected": "allow"
   },
   {
       "name": "external email should require approval",
       "identity": research_agent,
       "tool_name": "send_email",
       "action": {
           "type": "send_email",
           "recipient_domain": "example.com",
           "sensitivity": "medium",
           "autonomous": True
       },
       "expected": "require_approval"
   },
   {
       "name": "low trust sensitive access denied",
       "identity": unknown_agent,
       "tool_name": "query_database",
       "action": {"type": "select", "sensitivity": "critical", "autonomous": True},
       "expected": "deny"
   },
   {
       "name": "shell command should enter sandbox",
       "identity": ops_agent,
       "tool_name": "shell_exec",
       "action": {
           "type": "shell_exec",
           "command": "echo hello",
           "sensitivity": "low",
           "autonomous": True
       },
       "expected": "sandbox"
   },
]
test_results = []
for test in test_cases:
   decision = engine.evaluate(
       identity=test["identity"],
       tool_name=test["tool_name"],
       action=test["action"]
   )
   passed = decision.decision == test["expected"]
   test_results.append({
       "test": test["name"],
       "expected": test["expected"],
       "actual": decision.decision,
       "passed": passed,
       "matched_rule": decision.matched_rule
   })
test_df = pd.DataFrame(test_results)
display(test_df)
engine.activate_kill_switch()
try:
   research_db(
       table="customers",
       operation="select",
       type="select",
       sensitivity="low"
   )
except Exception as e:
   pass
engine.deactivate_kill_switch()
audit_df = audit_log.to_dataframe()
summary = (
   audit_df
   .groupby(["decision", "severity"], dropna=False)
   .size()
   .reset_index(name="count")
   .sort_values("count", ascending=False)
)
display(summary)
agent_summary = (
   audit_df
   .groupby(["agent_name", "decision"])
   .size()
   .reset_index(name="count")
   .sort_values(["agent_name", "count"], ascending=[True, False])
)
display(agent_summary)
decision_counts = audit_df["decision"].value_counts()
plt.figure(figsize=(8, 5))
decision_counts.plot(kind="bar")
plt.title("Governance Decisions Across Agent Actions")
plt.xlabel("Decision")
plt.ylabel("Count")
plt.xticks(rotation=30)
plt.tight_layout()
plt.show()
severity_counts = audit_df["severity"].fillna("none").value_counts()
plt.figure(figsize=(8, 5))
severity_counts.plot(kind="bar")
plt.title("Governance Events by Severity")
plt.xlabel("Severity")
plt.ylabel("Count")
plt.xticks(rotation=30)
plt.tight_layout()
plt.show()
G = nx.DiGraph()
for _, row in audit_df.iterrows():
   agent_node = f"Agent: {row['agent_name']}"
   tool_node = f"Tool: {row['tool_name']}"
   decision_node = f"Decision: {row['decision']}"
   rule_node = f"Rule: {row['matched_rule']}" if pd.notna(row["matched_rule"]) else "Rule: default"
   G.add_node(agent_node, node_type="agent")
   G.add_node(tool_node, node_type="tool")
   G.add_node(decision_node, node_type="decision")
   G.add_node(rule_node, node_type="rule")
   G.add_edge(agent_node, tool_node, relation="calls")
   G.add_edge(tool_node, decision_node, relation="produces")
   G.add_edge(decision_node, rule_node, relation="matched")
plt.figure(figsize=(14, 9))
pos = nx.spring_layout(G, seed=42, k=0.8)
nx.draw_networkx_nodes(G, pos, node_size=1800)
nx.draw_networkx_edges(G, pos, arrows=True, arrowstyle="->", arrowsize=15)
nx.draw_networkx_labels(G, pos, font_size=8)
plt.title("Agent Governance Graph: Agents, Tools, Decisions, and Policy Rules")
plt.axis("off")
plt.tight_layout()
plt.show()
EXPORT_DIR = "/content/agt_tutorial_outputs"
os.makedirs(EXPORT_DIR, exist_ok=True)
audit_json_path = os.path.join(EXPORT_DIR, "tamper_evident_audit_log.json")
audit_csv_path = os.path.join(EXPORT_DIR, "governance_audit_log.csv")
policy_copy_path = os.path.join(EXPORT_DIR, "advanced_agent_policy.yaml")
test_results_path = os.path.join(EXPORT_DIR, "policy_test_results.csv")
with open(audit_json_path, "w") as f:
   json.dump([asdict(r) for r in audit_log.records], f, indent=2, default=str)
audit_df.to_csv(audit_csv_path, index=False)
test_df.to_csv(test_results_path, index=False)
shutil.copy(POLICY_PATH, policy_copy_path)

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