After you deploy the Virtual Network Manager instance, you then create a *network group* by using conditional statements to select virtual networks by name, tags, or IDs (dynamic membership). You can also select specific virtual networks (static membership). The network group rules defined are reflected in Azure Policy as a custom initiative definition and corresponding assignment that illustrate the rules you defined for virtual network membership. For more information about Azure Policy initiatives, see [Azure Policy initiative structure](../governance/policy/concepts/initiative-definition-structure.md). These policies are available in read-only mode today. For more information about how to create, update, and delete these policies, see [Network groups and Azure Policy](concept-network-groups.md#network-group-and-azure-policy). You then create connectivity and/or security configuration(s) applied to those network groups based on your topology and security needs.
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