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Understanding Identity & Access Management: How IAM is Used Everyday

Posted at: 02.04.2025in category:Top Stories
We define Identity and Access Management (IAM) and compare various use cases for improving cybersecurity.

a hand pushing a button on a panel. with text: How is IAM used?

Identity and Access Management (IAM) is your digital security guard, keeping watch over who, where and when your company data is accessed. It helps stop hackers, keeps sensitive info safe, and makes logging in smoother for users.

By the end of this article, you’ll understand the different types of IAM, its everyday use cases, and how IAM fits into the wider world of cybersecurity.

What Is IAM?

Identity and access management is a framework of technologies, policies, and processes designed to control access to an organization's systems, applications, and data. The goal of IAM is to ensure that only the right people have access to the right resources at the right times. 

IAM involves several key actions: authenticating users, authorizing their access levels, and managing their identities throughout their lifecycle within an organization. 

Imagine your company's network is an airport and IAM is the security control officer. IAM checks passports (user credentials), ensures travelers (employees) have valid visas (access rights), and verifies if they’re authorized to enter restricted areas like the Global Entry or first-class lanes (privileged systems).

When deployed properly, IAM allows for secure, seamless user access while also protecting against unauthorized access and insider threats.

What Is Privileged Access Management?

Privileged Access Management (PAM) is a subset of IAM that focuses specifically on controlling privileged systems and users. Sensitive systems and data such as health or financial information, proprietary technology, or research data are prime targets for cyberattacks, and PAM tools and processes provide an extra layer of security. 

Privileged users are often administrators or executives with elevated permissions that, if exploited, could cause significant harm to the company.

The benefits of Privileged access management include:

  1. Secure Administrative Access: PAM solutions help secure access to servers, databases, and other sensitive systems by requiring multi-factor authentication (MFA) or just-in-time access (JIT).

  2. Audit and Compliance: Organizations can track and log privileged activities to meet regulatory compliance standards.

  3. Reducing Insider Threats: PAM lowers the risks associated with compromised credentials or employees who misuse their privileges by ensuring strict controls over who can access what information.

Defining User Access Management

User Access Management (UAM) is another subset of IAM that ensures all non-privileged users such as employees, contractors, or customers have appropriate access based on their roles and responsibilities. While PAM focuses on privileged users, UAM focuses on everyday users who need access to systems and data to perform their work. 

The UAM process is managed through user accounts, roles, and permissions, which can be adjusted based on an individual user's needs and duties in the organization. 

Here’s how user access management helps streamline security and employee access: 

  1. Role-Based Access Control (RBAC): Assigning users access based on their job roles.

  2. Automated Access Permissions: Automatically granting and revoking access when employees join, change roles, or leave an organization.

  3. Simplifying Access for Users: Reducing the time it takes for users to gain access to necessary resources while maintaining security.

IAM and Cybersecurity: Where Does It Fit?

Is IAM considered cybersecurity? Absolutely. IAM plays a crucial role in cybersecurity strategy by acting as the first line of defense against unauthorized access. Without strong IAM policies, organizations are vulnerable to external and internal threats.

Identity and Access Management enhances cybersecurity through:

  1. Improved Data Security: IAM helps prevent cyberattacks and data breaches by ensuring that only authorized users have access to sensitive information.

  2. Operational Efficiency: IAM reduces human error and the burden on IT teams by automating access management tasks like user account management, password resets, and access reviews.

  3. Streamlined User Experience: IAM solutions simplify the login process through single sign-on (SSO) capabilities or multi-factor authentication (MFA). These tools allow access to all company-approved websites and applications without having to log in several times. 

  4. Regulatory Compliance: IAM strategies help organizations stay compliant through tools that enforce security policies, manage user identities, and generate audit trails. 

  5. Scalability and Flexibility: Many IAM solutions can easily scale as the number of company users and devices grows.

Data breaches are incredibly costly to a company, and the bigger a company becomes, the more complex it is to manage all the users, devices, and data. Identity and access management is a valuable cybersecurity tool in both domains.

The Differences Between How IAM Is Implemented by Global Businesses and Small Companies

A company’s approach to identity and access management can vary greatly depending on its size, resources, and risk tolerance.

Here are the main IAM considerations for global businesses vs. small companies:

Global Businesses:

  1. Advanced Technologies: Enterprises need to manage access for thousands or even millions of users. This requires cutting-edge IAM solutions that may include AI-driven insights and analytics.

  2. Hybrid and Cloud Environments: Large businesses often need IAM systems that work seamlessly across on-premise and cloud-based infrastructures.

  3. Strict Compliance Requirements: Global organizations need to comply with multiple regulatory frameworks, often across many countries. This reality necessitates strong, thorough and tailored IAM strategies.

Small Companies:

  1. Simplified Solutions: Smaller organizations can often rely on basic IAM tools that are easier to implement and manage, such as Google Workspace or Microsoft 365.

  2. Cost Constraints: Budgets may limit small businesses to more cost-effective IAM options like open-source or bundled services.

  3. Scalability Challenges: Small businesses may struggle with scaling their IAM solutions as they grow.

To learn how your business can implement IAM and stay compliant with legal regulations, read this article: What is Identity and Access Management (IAM) & How To Stay Compliant

Everyday IAM Use Cases

IAM’s role is not limited to IT departments or large-scale organizations. It’s woven into our daily lives and work. Here are some examples of common scenarios where IAM is used:

Workforce Management:

  • Employees logging into their work systems using single sign-on (SSO) and MFA.
  • Automating access for new hires and revoking it when employees leave.
  • Helping users create strong passwords to protect against cyberattacks.

Customer Identity and Access Management (CIAM):

  • Ensuring secure logins for customers on online platforms and portals.
  • Providing seamless access to accounts through social login options such as “sign in with Google” or “sign in with Microsoft.”

Healthcare:

  • Enabling doctors to access patient records securely.
  • Limiting administrative staff access to sensitive medical data to comply with regulations like HIPAA.

Education:

  • Managing student and faculty access to learning management systems and campus networks.
  • Providing parents with secure access to their children's academic records.

Retail and E-Commerce:

  • Protecting sensitive customer information, such as payment details.
  • Enhancing user experience through personalized, secure access to accounts.

Make sure you have a strong digital security guard protecting your company. Identity and access management is the key to staying secure while keeping digital work hassle-free for employees.

Ready to implement IAM? Check out this guide next: What is Identity and Access Management (IAM) & How To Stay Compliant

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