Managing access to information and systems has become a priority for organizations of all sizes. Identity and access management (IAM) provides an effective way to control access, helping businesses protect data, streamline processes, and comply with regulations. Learn why IAM is essential, the value it provides, and how it can address your organization’s needs.
IAM refers to the tools, policies, and practices that organizations use to manage user identities and regulate access to resources. It ensures that employees, customers, contractors, and other stakeholders can access only what they are authorized to use. By assigning appropriate access rights based on roles, IAM minimizes security risks and helps increase operational efficiency.
For example, a sales rep may need access to a customer relationship management (CRM) system but not to HR payroll software. IAM systems enforce these access controls and keep track of who accesses what and when.
IAM also covers the management of machine identities—service accounts, APIs, and more—that typically outnumber human users in organizations.
The increasing number of cyberattacks has made IAM a necessity. According to Verizon’s Data Breach Investigations Report, 61% of breaches involve compromised credentials [1]. Weak passwords, phishing attacks, and stolen credentials remain top methods for attackers to gain unauthorized access to sensitive systems and data.
IAM plays a large role in reducing these risks by enforcing authentication mechanisms, such as multi-factor authentication (MFA) and ensuring users follow strong password policies. With IAM, organizations can also track and audit user access, providing full visibility into who accessed what and when.
Beyond reducing breaches, IAM helps organizations adapt to the increasing complexity of access management. Remote work, hybrid environments, and cloud adoption have added layers of complexity to securing identities.
Machine identities further complicate this landscape. With machine identities now outnumbering human identities by a factor of 45 in some organizations [2], IAM must evolve to manage these efficiently.
Non-employee and third-party identities refer to individuals or entities that require access to an organization’s systems but are not direct employees. These can include contractors, vendors, consultants, partners, or temporary workers. Unlike full-time employees, these users often have limited or specialized access needs, making it essential to manage their permissions carefully.
Managing these identities is a key part of securing your organization. Contractors, vendors, and partners often need access to specific systems or data, but if their access isn’t properly managed, it can create security risks. IAM allows organizations to set clear limits on what external users can access and for how long.
For example, a vendor performing maintenance on a system may need temporary access to certain tools but shouldn’t have ongoing or unrestricted access. IAM helps ensure these permissions are granted securely, monitored for any unusual activity, and removed when no longer necessary. This reduces the likelihood of breaches and helps organizations meet security and compliance requirements.
IAM doesn’t just minimize data breaches, it actively prevents unauthorized access by continuously monitoring user behavior and flagging anomalies. For example, modern IAM systems use behavior-based analytics to identify potential threats, such as unusual login times or access requests from unexpected locations. These insights help organizations address risks before they escalate into incidents.
IAM also enables a zero-trust approach by verifying users and devices at every interaction. This is important for protecting sensitive data and intellectual property, especially in industries like healthcare, finance, and technology.
While automating tasks like password resets and user provisioning reduces IT workload, IAM’s impact on workflows is even bigger than that. It streamlines approval processes for access requests, ensuring that permissions are granted quickly without compromising security.
For example, an IAM system can automatically provision access when a new employee joins and de-provision access immediately when they leave. This reduces the risk of dormant accounts being exploited. Integration with HR systems makes sure that access changes are aligned with real-time employment status.
IAM automation also improves accuracy by reducing human errors in granting or revoking access, which is particularly important for meeting compliance standards. A study by Gartner estimates that IAM automation reduces identity management costs by up to 50% [3].
IAM simplifies how organizations enforce and show compliance with regulatory requirements. Detailed audit trails capture every access event—who accessed what, when, and how—making it easier to respond to audit requests or investigations.
IAM also supports identity governance, helping organizations conduct regular access reviews and certifications. For example, managers can review which employees have access to sensitive systems and confirm or revoke permissions as needed. This process ensures that access remains appropriate as roles and responsibilities change.
IAM improves experiences for both users and IT teams. For users, features like single sign-on (SSO) eliminate the need to remember multiple passwords, while multi-factor authentication (MFA) helps balance security with convenience. Adaptive MFA takes this a step further by adjusting authentication requirements based on risk, providing extra security when needed.
For IT teams, IAM’s self-service features allows users to manage routine tasks like password resets or access requests, reducing helpdesk volumes. A Forrester study highlights that organizations implementing IAM see a 40% reduction in IT support tickets related to access [4].
These improvements lead to faster workflows, increased employee productivity, and reduced frustration—particularly in hybrid or remote work environments.
IAM’s financial impact goes beyond just reducing security incidents. By automating manual processes and improving operational efficiency, IAM helps organizations save time and money.
For example, automating access provisioning and de-provisioning reduces delays in onboarding and offboarding. This prevents disruptions and reduces risks associated with excess access. On top of this, IAM centralizes identity and access data, enabling organizations to optimize their tech stack and reduce redundant systems.
IAM also supports scalability, allowing businesses to grow without adding unnecessary complexity. As organizations adopt more cloud applications or expand into new markets, IAM ensures that access remains secure and manageable.
In modern environments, organizations often operate across multiple cloud platforms and hybrid systems. IAM plays a critical role in securing these complex ecosystems by providing centralized control over access.
IAM solutions can enforce consistent access policies across on-premise systems, private clouds, and public cloud services like AWS, Azure, or Google Cloud.
By managing machine and human identities seamlessly, IAM also simplifies the integration of APIs, microservices, and Internet of Things (IoT) devices, ensuring that security scales with innovation.
IAM is not a one-size-fits-all solution. Different industries have different requirements and regulations that impact how identity and access management may be implemented. Here are a few examples of how IAM can be customized to meet the needs of various sectors:
Healthcare organizations handle large volumes of sensitive patient data, making security and compliance crucial. Regulations like HIPAA require strict access controls to protect electronic health records and other sensitive data. IAM ensures that only authorized individuals, like doctors and nurses, can access patient information. Role-based access controls are commonly used to enforce these restrictions, ensuring compliance without affecting patient care.
IAM also helps healthcare organizations secure remote access for telehealth services, enabling providers to offer virtual care without compromising security. Multi-factor authentication and logging features ensure secure access and provide an audit trail to meet compliance requirements.
The financial sector is often a target for cyberattacks due to the high value of the data it manages. IAM solutions in this industry focus on enforcing security measures, such as MFA, adaptive authentication, and privileged access management (PAM).
Regulations like SOX (Sarbanes-Oxley Act), GLBA (Gramm-Leach-Bliley Act), and PCI DSS (Payment Card Industry Data Security Standard) mandate controls over who can access financial systems and customer data. IAM supports compliance by providing detailed audit trails, automated access reviews, and role-based permissions.
IAM also simplifies onboarding and offboarding processes for financial institutions that deal with a large number of temporary employees or contractors, ensuring that access rights are assigned and revoked efficiently.
Retail businesses face unique IAM challenges due to the diverse roles of their workforce, ranging from in-store employees to e-commerce teams. Many retail systems must also integrate with third-party vendors and partners, increasing the risk of unauthorized access.
IAM helps secure customer data, including payment information and shopping history, by enforcing access controls and compliance with PCI DSS. It also enables SSO for employees, improving productivity by allowing them to access inventory systems, point-of-sale (POS) systems, and other tools easily.
For e-commerce, IAM protects customer-facing platforms by managing secure logins and implementing MFA for user accounts. This improves the user experience while reducing the risk of accounts being hacked.
Educational institutions manage a wide range of users, including students, faculty, and administrative staff, each requiring access to different resources. IAM systems in education ensure secure access to learning management systems, student records, and research data.
IAM also helps enable collaboration by allowing institutions to grant access to external partners, such as researchers or industry collaborators, without compromising security. Automated provisioning and de-provisioning streamline access management as users join, change roles, or leave the institution.
Tech companies often deal with a distributed workforce and hybrid environments that include cloud services, APIs, and DevOps. IAM is critical for managing access across these dynamic environments.
Features like just-in-time (JIT) access, which provides temporary elevated permissions for specific tasks, and PAM, which secures admin accounts, are widely used in this industry. IAM also supports compliance with frameworks like ISO 27001 and SOC 2 by ensuring access policies are enforced consistently and audit trails are maintained.
Effective IAM implementation requires careful planning, clear goals, and collaboration across teams, to name a few. Interested in learning more? Check out our blog on the top 5 ways to succeed with IAM. It outlines actionable steps for rolling out IAM effectively and maximizing its benefits.
Starting or optimizing IAM doesn’t have to be complicated. At Anomalix, we specialize in helping businesses:
Contact us at info@anomalix.com to learn how IAM can help your organization stay secure, efficient, and compliant.
