Why Identity and Access Management is Important? (2024)

Identity and access management (IAM), also known as identity management, refers to the IT security processes, frameworks, and solutions for managing digital identities. Identity management includes the provisioning and deprovisioning of identities, securing and authenticating user identities, and authorizing access to resources to perform certain actions. While a user has only one singular identity, they may have multiple accounts representing them. Each account can have different access controls per resource and context.

Why Identity and Access Management is Important? (1)

The main goal of identity and access management is to ensure any given identity has access to the right resources in the form of applications, databases, and networks. In this blog post, we’ll delve into the significance of IAM and examine various IAM tools.

Understanding Why Identity and Access Management is Important?

Let’s discover the importance of identity and access management.

Improves Data Security

Controlling use access enables organizations to eliminate instances of identity theft, security breaches, and unauthorized access to sensitive business information. IAM can prevent the aftereffects of compromised login credentials and block unauthorized access to a business’s network. It also protects against hacking, ransomware, phishing, and other types of cyberattacks.

Streamlines IT workload

When a security policy gets updated, all access privileges across an enterprise can be changed at one time. By streamlining access control, IAM can help cut down on the number of tickets employees send to the IT helpdesk for password resets.

Helps in Regulatory Compliance

Many businesses have regulatory requirements around data privacy and security, such as HIPAA, GDPR, and PCI DSS. IAM solutions can help organizations ensure compliance with these regulations by enforcing access controls and audit trails. By providing detailed logs of user activity, organizations can demonstrate their compliance with regulatory requirements.

Reduces Human Errors

With an identity and access management tool in place, organizations can eliminate manual account and permission errors because the IT team no longer has to manage access rights to data manually. Additionally, IT can avoid dealing with mistakes made by negligent employees, preventing potential costly penalties. For instance, employees might accidentally grant access to sensitive data, leading to data breaches and regulatory fines.

Enhanced Access to Resources

With a centralized platform and key features such as single sign-on (SSO), users can effortlessly access the necessary resources to execute their tasks. They don’t have to deal with multiple access points, which improves their overall performance.

Data Confidentiality

By restricting access for users who don’t need to use certain applications or files, businesses can secure sensitive data and enable managers to have end-to-end visibility of which users are associated with which access.

Better User Experience

With the implementation of IAM tools, the IT team can create a unique digital identity for every user that includes a set of credentials. This eliminates the need for maintaining multiple passwords for various business applications or resources.

Exploring Different Types of IAM Tools

Various IAM tools cater to diverse needs in managing identities and access across organizations, highlighting the benefits of identity and access management. Here are some notable examples:

Single Sign-on (SSO)

Single sign-on presents a single point of access for all cloud and on-premise applications. Users can access databases and other business resources immediately. They don’t have to deal with multiple login portals. Employees can launch CRM software, email clients, and other collaboration tools without compromising security.

SSO has other benefits beyond simplified access. It can gather information about user activity. This data provides insight into network security. Admins can track how users move between assets. They can fine-tune threat detection processes and improve privilege management.

Multi-factor Authentication (MFA)

Multi-factor authentication (MFA) needs more than one additional factor from users before admitting them to network resources. This empowers the authentication side of an IAM solution. Access control systems block illegitimate access by malicious actors.

Businesses can choose between various forms of MFA when designing an IAM system. Some of the options are:

  • Biometric authentication: Employees can prove their identity using retinal scanners, and smartphone fingerprint scanners are also an option. This adds an extra layer of security to critical business resources.
  • One-time passcodes (OTPs): OTPs are unique passcodes that expire after a set period. They are sent to users when they submit their username and password. OTPs tend to be managed by third-party authentication providers and can be sent to separate devices or smartphones.
  • Smart cards: Smart card authentication employs the embedded chip in a card to verify the user’s identity. The chip can generate or store authentication data through cryptographic algorithms that a reader can verify.

MFA technology can also be adaptive. This means that MFA software analyzes login attempts against risk metrics. When users pass these background risk assessments, they are admitted to the network.

Privileged Access Management (PAM)

MFA and SSO authenticate users, establishing their identity. The IAM system then assigns each user appropriate access privileges. This enables the user to access resources relevant to their designated role while blocking access to other network assets.

Administrators can manage privileges on a granular level or through role-based access management (RBAC). Granular privileges provide more control, and they are ideal for high-level individuals.

Roles can apply to groups of employees and are created for specific projects. The IAM tool automatically revokes user privileges. It applies whether employees leave the project or the organization. This reduces the risk of orphaned accounts that attackers could exploit.

Federated Identity Management

Federated identity management creates user profiles that are shared across different organizations. Federated identities enable users to move various connected assets following authentication by SSO portals. This includes assets that are not directly managed by their own companies.

This is essentially useful because workloads often spread across many cloud settings. For example, employees may need access to the Microsoft suite of applications, Google Docs, or Slack. They may also need access to company databases hosted on Amazon AWS servers.

Businesses can use federated identities to share profiles and avoid complex alternatives. Third-party IAM providers connect employees with workloads they need without requiring backend coding.

Threat Detection Systems

An IAM solution can also provide threat detection and analysis tools. Identity is a major cybersecurity frontier. Bad actors try to steal credentials and leverage weak points on the network edge. This makes IAM solutions the ideal place to track activity and block threats before they enter the network environment.

IAM systems can monitor the amount of traffic entering and leaving the networks. They can log information about login attempts and detect anomalous patterns. They can apply allowlists for approved IP addresses and block blacklisted identities.

Summing Up: The Strategic Edge of Implementing IAM

Identity and access management (IAM) is not just a security measure; it’s a strategic asset that can drive efficiency and innovation within an organization. IAM facilitates smoother operations and enhances user productivity by ensuring secure, streamlined access to resources. One of the key advantages of IAM is its ability to strengthen security while simultaneously improving operational efficiency. The integration of advanced IAM tools allows businesses to stay ahead of evolving cyber threats, ensuring a resilient security posture.

Check out OneIdP, a UEM-integrated identity and access management solution, to minimize your attack surface. Schedule a demo with our experts to know more.

Why Identity and Access Management is Important? (2024)
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