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Password breaches cost companies millions of dollars annually, yet many organizations still store their credentials in shared documents or spreadsheets. Unfortunately, this makes it easy for cybercriminals to exploit vulnerabilities, increasing the risk of data breaches, financial losses, and reputational damage. Thankfully, there’s a solution that helps mitigate these risks: using a password manager. But how exactly does this tool work, and why should you consider it for your business? Let’s find out below.
What is a password manager for business, anyway?
A password manager for business is a specialized security tool that enables companies to store, manage, and safeguard credentials across their teams. It offers centralized vaults where your organization can securely store credentials for client portals, shared accounts, and internal systems. This tool helps eliminate the need for your team members to manually remember and share passwords, allowing password sharing to be done in a controlled and auditable manner.
When setting up a password manager, an authentication method such as biometrics or a master password is used for data encryption and decryption. Depending on the service, the data is stored either in the cloud or locally. Password managers are integrated with an organization’s IT infrastructure or directory services to boost security and streamline access. Administrators can manage permissions, assign roles, and monitor activity to ensure that employees have access only to the necessary credentials.
How does a password manager benefit your business?
If you’re wondering why you should even consider using a password manager for your business, here are several benefits of this solution:
It enables secure file and password sharing
You and your team members need to be able to share files and passwords in a safe manner, as this will help mitigate the risk of compromised data. Files and passwords shared over email are not encrypted, meaning that a cybercriminal could easily intercept the data.
What’s even worse than sharing sensitive data over email is writing passwords on a sticky note, because anyone could pick it up and use it in malicious ways. The good news is that a password manager can help solve this problem, as it secures the data and ensures only the correct recipient will receive it.
It simplifies the onboarding and offboarding process
You need a convenient way to onboard and offboard employees and having a password manager can make these tedious tasks simpler. This tool can aid the process by allowing you to share passwords safely when an employee first arrives at the company and also change them immediately after an employee leaves.
For the onboarding process, a password manager can be very convenient because it helps organize the employee’s login credentials based on their role, which means you will not need to spend time manually setting up the employee’s accounts. Similarly, the password manager allows you to remove the employee’s access to all systems during the offboarding process, so that they won’t be able to compromise any business data. 4
It boosts productivity
A password manager can help your team become more productive because they won’t have to memorize the passwords on their own or reset them over and over again. The master password is the only one they need to remember, which essentially allows them to access their vault. Furthermore, password managers enable employees to generate robust passwords, thereby saving them time.
Since password managers have an automatic login feature, this eliminates the need to type credentials manually and the time lost due to incorrect password entries or typos.
It saves money in the long run
One of the most important benefits of password managers is that they can save your business money in the long run, especially in the event of a cyberattack. Let’s say your company didn’t have a password manager in place and utilized weak passwords. If it suffered a data breach, it would be forced to cease its operations if the information it handles or its finances were compromised. Furthermore, it would also lead to a tarnished reputation.
Given that 68% of data breaches happen due to employees making mistakes or falling victim to phishing scams, investing in a password manager will cost less than risking not being able to recover in the event of a cyber-attack.
It helps ensure auditing and compliance
Maintaining regulatory compliance is crucial for companies operating across various sectors. The good news is that a password manager can also help achieve this goal, as it provides features such as activity monitoring and audit logs, allowing administrators to track password-related activities.
These features are highly useful, providing valuable insights and evidence for compliance audits and helping ensure that your organization meets the applicable regulatory requirements.
What to look for when choosing a password manager for your business?
Now that we’ve discussed the benefits of a password manager, you may wonder how you can find the best solution for your business. While it all depends on your unique needs and priorities, there are a few factors that will help you make a decision:
- Security features: The password manager you choose should use two-factor authentication, robust encryption, and advanced security measures like zero-knowledge architecture;
- Compatibility: The password manager should be compatible with the devices of your company, as well as its web browsers and operating systems, and it should integrate seamlessly with your current IT infrastructure;
- Ease of use: A password manager should be easy to use and intuitive, so make sure it has a user-friendly interface, as it will ensure employees can use the tool without requiring extensive training;
- Password sharing: The password manager should enable secure sharing of credentials with team members, and offer options to control access levels, like full access or view-only;
- Price and licensing: You should obviously assess the cost of the password manager in relation to its features; many providers have tiered pricing plans, so make sure to research and select a plan that aligns with the needs and size of your business.
- Customer support: Reliable customer support is crucial for your business, so choose a provider with responsive support options, such as phone, email, and chat.
The bottom line
It’s risky to rely on outdated methods to manage passwords nowadays. A password manager is not just a convenience, but a critical layer of protection that safeguards sensitive information, enhances efficiency, and supports compliance, helping your business decrease the risk of a data breach while enhancing productivity.
