Identity and access management (IAM) refers to the policies, processes, and technologies used to manage user identities and control access within an organization.
Two core concepts in IAM are “users” and “access.”
- Access defines what actions a user is allowed to perform—such as viewing, creating, or modifying files.
- Users can include employees, contractors, partners, suppliers, or customers. Within an organization, employees are often segmented by role to ensure appropriate access levels.
How Identity and Access Management Works
IAM systems are designed to perform three key tasks: identify, authenticate, and authorize. Meaning, only the right persons should have access to computers, hardware, software apps, any IT resources, or perform specific tasks.
Some core IAM components making up an IAM framework include:
- A database containing users’ identities and access privileges
- IAM tools for creating, monitoring, modifying, and deleting access privileges
- A system for auditing login and access history
With the entry of new users or the changing of roles of existing users, the list of access privileges must be up to date all the time. IAM functions usually fall under IT departments or sections that handle cybersecurity and data management.
IAM Example at Work
Here are simple examples of IAM at work.
- When a user enters login credentials, their identity is verified against a secure database to confirm a match. For example, a contributor logging into a content management system may have permission to publish their own work—but not to edit other users’ content.
- Similarly, a production operator might be allowed to view an online work procedure but not modify it, while a supervisor could have broader permissions to edit or create new files. Without IAM in place, anyone could alter critical documents, leading to serious operational risks.
- IAM ensures that only authorized users can access and handle sensitive information, reducing the risk of data breaches and unauthorized changes. Beyond security, IAM also helps organizations comply with strict data management regulations, making it an essential component of modern cybersecurity strategies.
Role-based Access
Many IAM systems use role-based access control (RBAC). Under this approach, there are predefined job roles with specific sets of access privileges. Take HR employees as an RBAC example. If one HR officer is in charge of training, it makes little sense if that officer is given access to payroll and salary files.
Single Sign-On
Some IAM systems implement Single Sign-On (SSO). With SSO, users only need to verify themselves one time. They would then be given access to all systems without the need to log separately into each system.
Multi-Factor Authentication
Whenever extra steps are required for authentication, it’s either a two-factor authentication (2FA) or multi-factor authentication (MFA). This authentication process combines something the user knows (like a password) with something the user has (like a security token or OTP) or something that’s part of the user’s body (like biometrics).
IAM Benefits
Here’s a look at a few of the primary benefits and why identity and access management is important.
- IAM enhances security. This is perhaps the most important benefit organizations can get from IAM. By controlling user access, companies can eliminate instances of data breaches, identity theft, and illegal access to confidential information. IAM can prevent the spread of compromised login credentials, avoid unauthorized entry to the organization’s network, and provide protection against ransomware, hacking, phishing, and other kinds of cyber-attacks.
- IAM streamlines IT workload. Whenever a security policy gets updated, all access privileges across the organization can be changed in one sweep. IAM can also reduce the number of tickets sent to the IT helpdesk regarding password resets. Some systems even have automation set for tedious IT tasks.
- IAM helps in compliance. With IAM, companies can quickly meet the requirements of industry regulations (like HIPAA and GDPR) or implement IAM best practices.
- IAM allows collaboration and enhances productivity. Organizations can provide outsiders (like customers, suppliers, and visitors) access to their networks without jeopardizing security.
- IAM improves user experience. There's no need to enter multiple passwords to access multiple systems under SSO. If biometrics or smart cards are used, users may have no need to remember complex passwords.
Best Practices for Identity and Access Management
Following relevant ISO standards would be a good starting place to ensure organizations meet the best IAM practices. Some of these standards are:
- ISO/IEC 24760-1:2019 IT Security and Privacy - A framework for identity management - Part 1: Terminology and concepts
- ISO/IEC 24760-2:2015 Information technology - Security techniques - A framework for identity management - Part 2: Reference architecture and requirements
- ISO/IEC 24760-3:2016 Information technology - Security techniques - A framework for identity management — Part 3: Practice
- ISO/IEC 29115:2013 Information technology - Security techniques - Entity authentication assurance framework
- ISO/IEC 29146:2016 Information technology - Security techniques - A framework for access management
- ISO/IEC 29100:2011 Information technology - Security techniques - Privacy framework
- ISO/IEC 29101:2018 Information technology - Security techniques - Privacy architecture framework
- ISO/IEC TS 29003:2018 Information technology - Security techniques - Identity proofing
- ISO/IEC 29134:2017 Information technology - Security techniques - Guidelines for privacy impact assessment
Note that no matter how robust identity management solutions are, they can still crack with simple mistakes, like in cases of risky employee habits. That’s why basic cybersecurity practices – like using authorized devices for sensitive files, not sharing passwords, using secured networks – remain relevant as ever.
