When it comes to securing your business, managing who can access specific systems and data is essential. This is especially critical when your systems store sensitive business and customer information that must remain protected. A key component of managing user permissions effectively is identity and access management, or IAM.
In this article, we look into the basics, distinguish the difference between identity management and access management, and talk about the tools you need to keep things locked down.
What Is Identity and Access Management?
Identity and access management encompasses practices, software, and guidelines that organizations deploy to oversee user identities, allocate roles, and manage access to digital resources and data. IAM is considered a critical IT security framework because it guarantees that only authorized individuals or systems can access the appropriate resources at the right time.
Think of this framework as the digital counterpart to a security door system that grants access only to individuals with the right credentials, allowing them to enter an office building and access specific rooms based on their job functions. Without such a framework in place, employees, as well as potential intruders, could come and go as they please, leaving your organization vulnerable to data breaches and other security threats.
Identity Management vs. Access Management: Know the Difference
Although closely related, these two have distinct purposes:
- Identity management focuses on verifying and managing users’ identities. It involves creating and maintaining user accounts, profiles, and attributes so that only valid users are part of the system at all times. Identity management seeks to answer the question, “Who are you?”
- Access management is all about controlling who accesses what systems and under what conditions. It manages permissions and enforces regulations that determine which company users and guests can access specific resources, applications, and data. Access management answers, “What are you allowed to do?”
How IAM Works: The Basics
While different identity and access management systems may vary, they all share key components that work together to protect organizational data, including:
User Accounts
Every person who needs to log in to a system or network is given a user account, an identity within the system. This account can be linked to their email, role, and other attributes.
Roles and Access Policies
Instead of giving everyone the keys to every door, IAM uses access strategies based on roles. For example, a marketing employee might be allowed to view customer data but not financial records. Nor would they have access to the devices storing that data. Similarly, those who work in the finance department might need to access financial records but not customer relationship data. Implementing this policy helps guarantee members only get the access they need — no more, no less.
One of the most important features of IAM systems is multifactor authentication (MFA). MFA boosts security by asking users to verify their identity using more than just a password when accessing confidential information. This could involve something they know (e.g., a password), something they have (e.g., a smartphone), or something that’s part of them (e.g., a fingerprint).
Single Sign-On (SSO)
To ease sign-in processes, many companies use SSO, a mechanism that lets users log in only once to access multiple applications without having to enter their password for each app. By reducing the need for multiple logins, SSO helps minimize password fatigue, a leading cause of security lapses.
The Role of Policies in Identity and Access Management
To manage user permissions and protect systems, your organization should implement a clear plan outlining what team members are allowed and not allowed to do. This plan can be structured around the following factors:
Role-Based Access Control (RBAC)
This is one of the most common ways to assign permissions. With RBAC, everyone is given specific access privileges, whether it’s as an admin, a manager, or an employee, based on their responsibilities.
Least Privilege
The principle of least privilege dictates that individuals are given only the essential access needed to fulfill their job responsibilities. For instance, a sales associate typically doesn’t need access to payroll information.
Segregation of Duties
This policy reduces fraud or errors by requiring multiple people for critical tasks. An example of how this works is one person requests a financial transaction, while another approves it.
The Benefits of Identity and Access Management
The benefits of IAM extend beyond just security. Below are two key reasons why it’s essential for most organizations:
Improved User Experience
Implementing SSO, commonly part of an IAM framework, makes the user experience much smoother while maintaining strong security.
Operational Efficiency
IAM also streamlines the process of managing individual accounts, profiles, and access permissions. IT teams can manage all account holders from a single platform, reducing the time and effort required to handle access requests.
IAM Tools and Solutions
There are several tools and platforms available to help your team implement IAM systems. One such platform is Active Directory by Microsoft, a widely used directory service that helps organizations manage user identities and access to resources. There are also similar tools available for identity access management, including cloud-based solutions (e.g., Microsoft Entra ID, formerly known as Azure Active Directory) and various third-party IAM platforms.
These platforms allow organizations to store identities and manage access securely, while also offering features such as role-based access auditing, control, and reporting.
How IAM Helps Different Sectors
Many businesses across various industries rely on IAM.
Healthcare Organizations
Must comply with strict regulations such as HIPAA, requiring strong identity verification and access control.
Finance Firms
These companies need IAM to safeguard sensitive customer data and prevent unauthorized access to financial systems.
Education Sector
IAM can help manage access for students, teachers, and staff while maintaining data security.
Implementing IAM in Your Organization
If you’re new to IAM or looking to improve your current setup, here are some simple steps to follow:
Set Clear Policies
Determine who needs access to what resources and under which conditions. For instance, limiting access to sensitive financial systems solely to the finance team strengthens control and compliance. Incorporating contextual factors such as time of day, location, or device type enhances IAM policies by enabling more dynamic and secure decision-making. This allows access controls to adapt based on real-time conditions, making them more robust than static policies.
Implement Multifactor Authentication
Go beyond traditional password protection and introduce additional layers of security to prevent unauthorized access.
Use SSO
Improve users’ experience and security by enabling them to sign in to multiple apps with one login.
Regularly Review Access to Applications and Permission Rights
Regularly check who has access and adjust permissions to various systems and multiple devices as job functions change or employees leave. Remove or adjust system access promptly when changes occur to prevent staff members from accumulating unnecessary permissions.
Automate User Provisioning and Deprovisioning
Use tools to automatically create or remove accounts based on employee status to reduce errors.
Setting Up Identity Access Is Essential
Identity and access management is not just a technical necessity; it’s a crucial part of your organization’s overall security strategy. Regardless of your sector or the type of customers you serve, implementing the right IAM solutions helps you secure your data, enhance system usability, and maintain compliance with industry regulations.If you want to learn more about how IAM can benefit your organization or need help setting up a solution, don’t hesitate to contact the experts at KME Systems. We’re here to guide you through the process. Give us a call or leave a message.
