When it comes to cyber security, one of the most important things for businesses to focus on is implementing corporate password management tools, especially given that over 61% of data breaches in 2021 involved compromised credentials. Having a strong password management strategy in place can help protect businesses from data breaches, hacking, and other cyber security threats.

What Is a Password Manager?

A password manager is a software application that helps businesses create and manage unique, complex passwords for each of their online accounts. By using a password manager, businesses can ensure that their employees are using strong, unique passwords that are difficult to guess or crack.

Most password managers work by storing all usernames and passwords in an encrypted database. The employee uses one master password to log into the password manager, and from that point on, whenever they need to log into a website, the password manager will automatically fill in the specific credentials for that particular site. This not only saves the employee time, but it also helps to keep the company’s passworded accounts more secure.

In addition, most password management tools offer multi-factor authentication (MFA), which adds an additional layer of security defense and depth for the organization.

The Benefits of Using a Password Manager

There are many benefits of using a password manager for businesses. Perhaps the most obvious benefit is that it can help to keep your business’s passwords safe and secure. If all of your business’s passwords are stored in one secure, encrypted place, it is much less likely that they will be stolen or lost.

Additionally, a password manager can help to streamline the login process for your employees. Rather than having to remember multiple passwords, they can simply log in with one username and password. This can save time and increase productivity.

Also, a password manager can help to keep your business compliant with data privacy laws and regulations. By storing passwords in an encrypted format, you can ensure that only authorized individuals have access to them.

Finally, with corporate password management tools, employees are not privy to the individual passwords for each account. If they don’t know the passwords, they can’t inadvertently weaken the security of that particular account by writing the password down on a sticky note, or keeping it in a file on their desktop, or sending it via unsecured email or chat – all methods that criminals could exploit to steal credentials.

A good password manager can also help keep your programs and data safe if former employees attempt to access your company’s systems after their employment has ended. A password manager makes it easy to change or delete an employee’s passwords with one click, which can protect companies from data breaches perpetuated by ex-employees.

For example, a former employee of the company Live Nation went to work for their direct competitor, Ticketmaster, and brought stolen passwords with them. That employee and several co-conspirators used that information to log into proprietary Live Nation accounts in order to gain a significant business advantage over their competitor.

Thankfully, the malfeasance was discovered and the perpetrators were brought to justice. Ticketmaster was fined $10 million, but not until significant damage had already been done to Live Nation’s bottom line. Corporate password management tools could have helped prevent the situation by enabling the company to change all passwords once the employee left, without making all the other employees learn new passwords.

Some Challenges with Implementing Password Managers

One of the biggest challenges with implementing corporate password management tools is the rollout of the programs. Typically, this type of software involves a lot of coordination between the IT department, the administrative departments, and the end users. Some password managers are more intuitive than others, but they all have a learning curve, and some employees who aren’t particularly tech-savvy may struggle more than others with learning to use it.

The solution to this is to have a slow, staggered rollout with widely available training and education. For example, roll it out to a test environment first, and have a focus group of diverse employees with a wide spectrum of technical ability test the program. This way you can provide focused documentation and assistance to all employees once you have a better idea of what struggles they may face.

Another challenge is that some applications, such as Internet browsers, have their own built-in password managers, and these may conflict with corporate password management tools. For example, if a user tries to log into a website, they might get a pop-up from both the office password management tool and the browser password manager, and they might not know which password to choose, or which password is the right one. They might end up accidentally locking themselves out of an account that they need for work purposes, and then have to take the time to enlist the IT department’s help in sorting it out.

A final area to consider is how these tools run on personal and/or mobile devices. It is recommended to evaluate tool performance to understand the end user experience and effectiveness of password management tools on these types of devices.

Do You Need Help with Corporate Password Management Tools?

Password managers can also help businesses keep track of which employees have access to which accounts, and can provide additional security features such as two-factor authentication.

It’s important to note that corporate password management tools do not take the place of multi-factor authentication. Password management tools complement identity access management tools. They are both tools that can help prevent a cyber attack, but they must be used in conjunction with each other to have the greatest effect.

If you want to implement corporate password management tools as part of your organization’s cyber security measures, we can help with selection, implementation, and training for the IT department as well as the end users. Contact Socium Solutions today and let us help you safeguard your company’s data!