The rise in corporate breaches and the evolving threat of hacking have increased the pressure on organizations to develop effective enterprise password management strategies. While passwords remain one of the most popular ways to access information, the proliferation of mobile devices, cloud applications, and virtual networks has added to the complexity and challenge of managing passwords. This article will help you understand the basics of enterprise password management and the best practice to employ for your business.
What is Enterprise Password Management?
Enterprise Password Management (EPM) is a system that allows organizations to centrally manage and secure passwords. EPM typically includes a password vault that stores passwords in an encrypted format, as well as tools for managing and regulating password usage. EPM can help organizations improve security and compliance, while also reducing the number of help desk calls related to password issues.
Why adequate password management and control are essential for the protection of corporate data?
Information security is more critical than ever in today’s business world. As sensitive data has proliferated, Hackers have become more adept and they are continuously devising new ways to breach networks. Organizations are increasingly challenged to securely store and manage critical corporate information as their use of cloud-based file storage and collaboration apps grow.
Many businesses have a big number of employees that require access to company information kept remotely in the cloud or shared with colleagues across the enterprise. This sometimes entails keeping usernames and passwords in spreadsheets, which can be accidentally shared with third parties, leaving firms open to password theft, inappropriate credential sharing, and other security risks. Increasing importance is being placed on developing a proper security strategy to protect sensitive data across multiple systems and locations. But with the average person having over 90 online accounts, it’s becoming increasingly difficult to keep track of them all.
That requires companies to rethink their approach to password management; a secure system that protects employee information is no longer just an option but a necessity.
This is where enterprise password management comes in. Enterprise password management is a security measure that helps organizations keep track of employee passwords and safeguard them from unauthorized access. It allows businesses to set up and enforce strong password policies, providing auditing and reporting capabilities as well as tracking and monitoring employee password usage.
Defining an organization’s enterprise password management strategy is critical to protect data, preventing data loss, and mitigate the risk of breach.
Current State of Password Management in Enterprises
The current state of password management in enterprises is a far cry from perfect. Although most enterprises have some form of password management in place, many are still using outdated and insecure methods. This leaves their systems and data vulnerable to attack.
There are a number of factors that contribute to the current state of password management in enterprises.
The constantly shifting terrain of cyber dangers
While Cybersecurity breaches are becoming more sophisticated and commonplace, old password management approaches become less effective as new threats develop. This keeps businesses in a perpetual state of change as they struggle to stay up with the latest threats. This means that businesses must be constantly changing their password management approaches to stay ahead of the curve. While this can be a challenge, it is essential to protecting your organization from the ever-evolving landscape of cyber threats.
IDs and passwords keep increasing
The number of convenient cloud services is increasing, and although it is attractive that it is possible to improve business efficiency at a low cost, the problem is that the number of IDs and passwords to be managed continues to increase. With so many passwords to keep track of, it’s easy for them to fall into the hands of hackers.
Left to individual control
Many companies entrust the management of ever-increasing numbers of IDs and passwords to individual employees. It is not uncommon for individual employees to use different management methods, such as recording in notepads or notebooks or organizing in Excel.
As the number of services used increases, the number of IDs and passwords to be managed also increases, increasing the work and burden on employees. As a result, passwords are reused and simplified in an attempt to reduce the effort as much as possible.
Using the same password for multiple services, changing the end of the password to create a pattern, or setting a simple string that is easy to predict increases security risks.
Remote work raises security concerns
The number of companies shifting to remote work has increased due to the promotion of work style reforms and the spread of new coronavirus infections. In remote work, the system is often accessed from various terminals such as PCs, smartphones, and tablet terminals, which increases security risks.
For example, there is a risk that your password will be recorded on the terminal you use at home, and your family or friends will access the system. Even if there is no malicious intent, the information important to the organization may be seen.
Also, password management can be perfunctory due to the lack of supervision in remote work. It is also possible to record it on a sticky note and paste it on the monitor, or write it on paper and leave it on the desk.
When working in cafes, libraries, eat-in spaces, etc., the risk of your password being snooped will increase. This can result in unauthorized access to your system.
Enterprise Password management challenges
One issue with password management is the increased risk of cyberattacks due to reuse and simplification. In addition, there is a risk that the organization will be in trouble due to information leakage, an increase in the workload of employees and administrators, and a decrease in security in a remote work environment.
Risk of cyberattacks due to reuse and simplification
As our world becomes increasingly digitized and interconnected, the risk of cyberattacks grows exponentially. One of the biggest contributing factors to this risk is the reuse and simplification of passwords. In a recent study, it was found that the average person has 26 different online accounts, but only uses 5 different passwords. Nearly 60% of workers reused passwords across multiple accounts. This creates a major security vulnerability, as hackers only need to crack one password to gain access to a wealth of sensitive information.
This is why it is said that reuse is not a good idea. Some experts say that passwords should be changed at least every 30 days. However, less than one-third of companies enforce such policies. A lack of common password-sharing practices, coupled with people’s tendency to reuse passwords, makes it highly likely that hackers will be able to penetrate into an organization’s systems.
Password reuse:
As our world becomes increasingly digitized and interconnected, the risk of cyberattacks grows exponentially. One of the biggest contributing factors to this risk is the reuse and simplification of passwords. In a recent study, it was found that the average person has 26 different online accounts, but only uses 5 different passwords. Nearly 60% of workers reused passwords across multiple accounts. This creates a major security vulnerability, as hackers only need to crack one password to gain access to a wealth of sensitive information.
This is why it is said that reuse is not a good idea. Some experts say that passwords should be changed at least every 30 days. However, less than one-third of companies enforce such policies. A lack of common password-sharing practices, coupled with people’s tendency to reuse passwords, makes it highly likely that hackers will be able to penetrate into an organization’s systems.
Password simplification:
Setting basic strings raises the possibility of hacks, so exercise caution. This includes situations like listing the same or consecutive numbers, making it your birthday, or utilizing only numbers.
Because simple character strings are easily predicted, it is required to design methods for combining numbers and letters, using lowercase and uppercase characters, and combining symbols.
Enterprise password management systems are a great way to ensure all passwords are unique, strong, and appropriately changed. Having an enterprise password management system protects against password reuse, which, when done on a large scale, can cause serious security risks. The risk of password reuse can trip up even the best password security policies and employee training.
Risk of information leakage
When password management is left up to individual employees, it typically weakens security. unauthorized access to the system may result in the leakage of important information. Or, an employee’s mistake may cause a leak.
Information leaks can have devastating consequences for companies, as they can damage relationships with customers and business partners and erode public trust. If wide-scale information is leaked, it will receive extensive media coverage and undermine the trust that has been built up.
There is also the possibility of legal action. Personal information leaks can result in lawsuits, a lot of time in court, and potentially paying large sums of money.
Increased burden on individuals due to ID/password management
Each employee must manage multiple IDs and passwords, which inevitably increases the burden. Not only does this increase the amount of time and effort required for management, but you will also be forced to enter a different ID and password each time, which will affect your work efficiency.
In addition, there are also burdens such as the need to enter the authentication code many times according to the security policy, and the management is complicated every time you are asked to change the password. Not only does this make it difficult to keep things running smoothly, but it also leads to a decrease in employee motivation.
Increased administrative work related to ID/password management
Not only on-site staff must maintain IDs and passwords. The administrative burden on administrators grows in tandem with the complexity of management. When an employee quits the company, for example, the ID and password used before must be erased, and registration work is required when new employees are employed.
The more cloud services you use, the more work this type of administrator is required to complete. In addition to the tasks listed above, administrators get a variety of questions and consultations about logging into the system, to which they must react.
For example, they may ask that their account has been locked due to an authentication failure, or that they would like to reset their password. The more services you have introduced to your employees, the more work your administrator will have to do.
Reduced security for remote work
Depending on the communication environment used for remote work, your password may be stolen. For example, although free Wi-Fi has the advantage of being available for free, it is known that there are security concerns, such as communication interception.
In addition, there is a risk that the terminal used for work may be stolen or lost. For example, if you leave your seat for a short time while working at a cafe, your device could be stolen, or you might leave it on the platform of a train station and end up in the hands of a third party.
If the terminal is stolen, it may lead to the leakage of the ID and password from there. As a result, the risk of information important to the organization leaking to the outside, or of unauthorized access to the website and falsification of information increases.
Importance of ID and password management
Inadequate ID and password management increases security risks and can end up putting your organization in a bind. Also, in order to improve productivity and strengthen compliance, it is necessary to firmly manage IDs and passwords.
Improved security
Thorough management is required to improve security and reduce risk. If it is not properly managed, it becomes a target for cyberattacks and unauthorized access, and important information such as personal information and company know-how may be leaked to the outside.
Security risks also exist within. It is undeniable that internal employees may access and leak confidential information. In a situation where anyone has access to confidential information that is critical to the survival of an organization, it would not be surprising if the information leaked out at any time.
To avoid such risks, it is necessary to grant access rights appropriately and not to spread information unnecessarily. In addition, there is a possibility that retired employees will log in to the system with the ID and password that they used before, so administrators are required to take appropriate measures.
When managed properly, an enterprise password management system can help you audit and restrict who in your organization has access to which passwords.
Increased productivity
A situation in which each employee manages multiple IDs and passwords leads to a decline in productivity.
Having to enter a different string every time you log into each system slows you down. You may be locked out due to an input error.
Even if one time is not so long, if you think about it in total, you will lose a considerable amount of time.
If you centralize IDs and passwords and create an environment where you can manage them, you can avoid the above risks. It can reduce the burden on employees and lead to increased productivity.
It also reduces the burden on administrators. If you have an environment that can be centrally managed, you will be able to unlock and reissue efficiently, and the burden will be reduced. As the burden is reduced, it becomes possible to focus on other tasks, leading to improved productivity.
Strengthen compliance
If an internal control audit reveals that IDs and passwords are not being properly managed, we may receive corrective recommendations. When receiving a correction recommendation, it is necessary to improve the pointed out point, which incurs man-hours and costs.
In order to avoid such a situation, it is essential to strengthen compliance, and to that end, it is essential to build an environment and system that can appropriately manage IDs and passwords. In addition to setting rules so that the same password is not used, we must strengthen the management system and check whether IDs and passwords are properly registered and deleted.
Strengthen access control. In order to avoid information leaks due to external cyberattacks and internal fraud, it is necessary to monitor various logs such as communication logs, authentication logs, and access logs.
Functions required for proper ID/password management
The single sign-on function is effective for proper ID and password management. It also requires multi-factor authentication, which can provide enhanced security, and permission settings.
Single sign-on
Single sign-on is a mechanism that allows access to various cloud services with a single authentication. It eliminates the need to authenticate with different passwords for each service, increasing user convenience.
In an environment where multiple cloud services are used, authentication must be performed using different IDs and passwords many times a day. Moreover, depending on the service, after a certain period of time has passed, you may be asked to log in again.
Implementing single sign-on will solve the above problems and improve business productivity. You can access the services you need quickly and use your time effectively.
It also reduces the risk of unauthorized access due to password leaks. Since there is only one managed account, it will be easier to manage and the risk of leakage will be reduced.
multi-factor authentication
Multi-factor authentication is an authentication method that uses multiple factors. Authentication is not possible with only one factor, so even if the password is leaked, the possibility of avoiding unauthorized access increases.
For example, in addition to your password, you may be asked for a PIN code or answer to a secret question. It is useful to prevent unauthorized access by a third party because you cannot log in by entering a password only, and you are required to enter a PIN code and answer to a set question.
In addition to knowledge information such as passwords and secret questions, the factors of multi-factor authentication include possession information and biometric information. Possession information is authenticated by things that only the person has (such as an IC card or smartphone), and biometric information is authenticated by face, fingerprints, etc.
The enhanced security required for remote work can also be solved by introducing multi-factor authentication. With the shift to remote work, more cloud services are likely to be used. Passwords may be leaked due to communication interception or eavesdropping, which may lead to unauthorized access, but enhancing security with multi-factor authentication will minimize the risk.
Setting access rights
Granting and managing appropriate access rights is also important. If access rights are set carelessly, anyone can access confidential or personal information, increasing the risk of information leakage or falsification.
Also, accounts created in the past may be abused. For example, if the account of an employee who left the company is left with access rights enabled, there is a risk of unauthorized access by a malicious third party or the person himself/herself.
In order to prevent unauthorized access from the outside as well as information leakage from the inside, make sure that access permissions are set and managed appropriately.
Identity governance management for proper ID/password management
Identity governance management (IGA) is the management of IDs, passwords, and governance within an organization. With the introduction of the IGA tool, users can log in to various services with a single password, which also has the advantage of facilitating access request and approval processes.
The introduction of IGA also has the advantage of reducing operating costs. Since tasks such as password management and inventory of access rights can be automated, it can be operated with fewer resources than before. In addition, administrators can strengthen security by constantly checking user access status and rule violations.
It also helps strengthen compliance. With the introduction of IGA, it is possible to meet the compliance requirements of various regulations, prove to audits that the use of IT is properly managed, and improve social credibility.
Effective enterprise password management best practices
There is no single silver bullet for perfect password management in enterprises, but there are some basic steps that can be taken to improve the security of passwords.
There are a few key things to keep in mind when it comes to password management for your business:
1. Use a strong password policy: This means requiring employees to use passwords that are a certain length and contain a mix of letters, numbers, and symbols.
2. Educate employees on password best practices: Make sure employees know not to use easily guessed words or personal information in their passwords.
3. Use a password manager: A password manager can generate and store strong passwords for employees, as well as keep track of which passwords have been used and where.
4. Change passwords regularly: Have employees change their passwords every few months to further reduce the risk of them being compromised.
Using password management solutions
Enterprises have a range of options when it comes to password management solutions. Many enterprises continue to use on-premises password vaults, though they are becoming more aware that those solutions are vulnerable. In fact, a recent survey of IT and security professionals found that 66% of respondents said they were concerned their organization’s password vault was vulnerable to an attack.
The secret to password managers is their simplicity. Tools such as Dashlane and LastPass combine password management with more advanced features such as biometrics, multifactor authentication, enterprise security, and an extra layer of defense against phishing.
There are a number of different password management systems available, each with its own advantages and disadvantages. The most important factor to consider when choosing a system is whether it will be able to meet the specific needs of your enterprise.
If you’re looking for a password manager, we recommend 1password.
Summary
As the number of IDs and passwords to be managed increases, the burden on individual employees increases, as does the security risk. If information leaks due to cyberattacks or unauthorized access, we will lose social trust and even the continuation of our business may be in jeopardy. In order to avoid such risks, companies are required to properly manage IDs and passwords.
Companies that wish to prevent data breaches and data theft must implement a formal and rigorous approach to identity and access management. Beyond simply storing your company’s passwords in a secure password vault, enterprise password management software gives you visibility and control over all of your company’s privileged access accounts to ensure they are properly managed.