Now, click on "+New alert policy" button. It will popup new alert policy form.
Fill out all the details which are required.
Name - Provide name to the new alert.
Alert type - Choose alert type - either custom or Elevation of privilege (This is a default alert policy created by Office 365. It helps you monitor all the activities that increased your users' admin privileges).
Description - Enter description for your alert.
Choose activities for alert - Here, you can define the conditions for an alert to be triggered.
User - Provide user who will get the email notification for alert.
Below are the various activities defined for alerts that you can choose to trigger for selected activity.
Dynamics 365 Activities
Sharing and access request activities
Synchronization activities
Folder activites
Site administration activities
Application administration activities
Azure AD group administration activities
Role administration activities
eDiscovery activities
Microsoft Teams Activities
Here, I have chosen added user activities for triggering an alert.
Choose added user activity and the user that you want to receive the alerts for and save it.
Here is the message you will get once it triggers alert.
"You are getting this email notification because there’s activity in your Office 365 organization that matches the alert ‘Alert me new user added’."
Administrators can view the alerts that are triggered by a policy, on the "View alerts" page.
This way, you can configure the Alert Policy in Security and Compliance Center on SharePoint / Office 365.
Happy reading.