Final answer:
To ensure your Azure environment adheres to regulatory requirements, Azure Policy is the tool you should use. It helps enforce governance standards and checks resource compliance within Azure.
Step-by-step explanation:
To evaluate whether your company's Azure environment meets regulatory requirements, you should use Azure Policy. Azure Policy helps in implementing governance and standards at scale for Azure resources. It allows you to create, assign, and manage policies that enforce different rules and effects over your resources, so those resources stay compliant with your corporate standards and service level agreements.
Azure Policy does this by evaluating your resources for non-compliance with assigned policies. For example, if there is a policy that all data storage should be encrypted, Azure Policy will check all storage accounts to ensure that they comply with this rule. Additionally, it can help in remediation efforts if a resource is found to be non-compliant. Options like Azure Security Center and Azure Advisor also provide security recommendations and best practices, but for compliance and regulatory requirements specifically, Azure Policy is the more appropriate tool.