Azure Backup provides backup for virtual machines - created through both the classic deployment model and the Azure Resource Manager deployment model - by using custom-defined backup policies in a Recovery Services vault.
With the release of backup policy management, customers can manage backup policies and model them to meet their changing requirements from a single window. Customers can edit a policy, associate more virtual machines to a policy, and delete unnecessary policies to meet their compliance requirements.
Incorrect Answers:
You can't delete a Recovery Services vault if it is registered to a server and holds backup data. If you try to delete a vault, but can't, the vault is still configured to receive backup data.
Reference:
https://azure.microsoft.com/en-in/updates/azure-vm-backup-policy-management/