What Is Identity and Access Management (IAM)? A Guide to Securing Digital Access

Imagine this: You walk into work, ready to jump back into a big project that could take your business to the next level, and alongside your caffeine-fueled coworkers, you have dreams of disrupting the industry with something truly special — until you realize no one can log into their accounts.

I’ve encountered this before. It can happen because someone simply changes the password policy, all without communicating it properly. That’s the opposite of a good Identity and Access Management policy, and I’m here to explain how to avoid it.

Identity and Access Management, or IAM, serves as a way for organizations to use frameworks to manage user access and control digital identities. These frameworks include technologies, tactics, and policies to ensure the right people, computers, and software items have the correct access levels for an organization to run efficiently and securely.

Simply put, IAM offers features for identity management, authentication, and access control, allowing businesses to maintain regulatory compliance and block bad actors, all while centralizing the entire operation and keeping it as streamlined as possible.

In this article, I explain the basics, benefits, and types of tools to implement IAM in your organization.

I’ve found that many people don’t know anything about IAM. That’s a shame, because it often decides whether you have access to a certain program at work and, if you’re a business owner, whether your systems are both secure and efficient in terms of access control.

Therefore, I think it’s best to break down IAM as simply as possible, starting with what the average Identity and Access Management system does:

• Authenticates identities of all users
• Authorizes access to certain resources
• Allows for the efficient creation and management of user accounts
• Helps with assigning and retracting user privileges

In short, IAM helps you and your organization control access and enhance security while also improving — or at least not hindering — productivity.

It can reduce the risk of bad actors gaining access and even streamline single sign-on and authentication processes. Lastly, I like how IAM creates breadcrumbs for audits, helping you monitor your security efforts and comply with regulations.

From my experience, the most logical way to understand IAM is to break it down into its key components. You already know it involves things like authentication and authorization, but what exactly does that mean? What other components come into play with Identity and Access Management?

Authentication

I like to think of authentication as the security guard at the entrance of an office building. That person ensures the right people enter the building, either by checking identification or recognizing faces.

Authentication with IAM is similar. It checks the user’s identity before giving access to certain systems.

Authentication methods used in IAM include:

• Security tokens: Physical devices like smartphones or fobs to generate codes that only work at certain times.
• Multi-factor authentication: I’m sure many people are aware of this one. It’s a method that requires two authentication methods to gain entry, like typing in a password and receiving a code on your phone.
• One-time passwords: These codes get generated for one use, and they’re often sent through email or SMS texting.
• Biometrics: Scans and checks that identify physical markings on people, like facial recognition, retinal scans, and fingerprint scanning.
• Passwords: Perhaps the most common form of authentication, passwords ask that users remember and type in a code before gaining entry to a program.

I’ve seen organizations use multiple types of authentication in their IAM strategies. Others opt for the more common ones, like passwords and multi-factor authentication. It all depends on what’s most convenient and secure for your organization.

Authorization

I like to compare authorization to a bouncer at a bar. Whereas an authenticator checks someone’s identity, authorization ensures that the person has the right level of clearance to get in.

When talking about a bouncer, they probably don’t care about your actual identity (who you are), just that you have what’s allowed to enter (you’re old enough).

In the realm of IAM, authorizations check which resources and actions a user has clearance for. This involves permissions and user roles, telling the overall system if someone has, for instance, the right credentials to make edits to a website.

Authorization usually entails the following with IAM:

• Least privilege principle: This is a principle that only gives users the minimum permissions needed to perform their required tasks.
• Policy-based controls: A process that only implements and enforces access rules depending on what’s stated by centralized policies.
• Attribute-based access controls (ABAC): The process of giving access to people based on specific user attributes or things like environmental conditions or resource attributes.
• Role-based access controls (RBAC): This is one of the most common forms of authorization, where you have assigned permissions, and you only gain access if you have the right predefined role.

I believe that the most effective form of IAM includes authorization throughout the entire process, from creating a user to removing them from your system.

User Lifecycle Management

As I mentioned in the previous section about authorization, there’s more to IAM than simply creating passwords for users and adding two-factor authentication.

You must manage the entire user lifecycle, from the first time you create a user account to the moment you remove the user from your organization. That means complete management throughout the user’s entire tenure.

Here are the user lifecycle stages managed in an effective IAM system:

1. Onboarding: Making new user accounts and setting access rights.
2. Provisioning: Giving the user access to specific applications and resources.
3. Modifying: Changing those access rights and user information as time passes or when responsibilities in your organization evolve.
4. Reviewing access permissions: Occasionally reviewing what’s going on with access permissions. Checking to make sure they’re all correct.
5. Deprovisioning: This happens when user access rights are no longer needed. It’s the process of revoking access rights.
6. Offboarding: Completely removing the user accounts once someone departs from your organization.

If I were to skip any of these steps in my IAM process, I’d leave open security holes. Reviewing access permissions is just as important as clearing your user database of unused accounts. From onboarding to offboarding, you should touch on every step.

Identity Federation

Identity federation is like having a master key that opens up every single door in one building. The only difference is that it’s a concept in IAM, one that grants access to several applications or systems for a user.

That access is achieved by only using one set of login credentials.

Some key aspects of identity federation include using a single set of credentials, cross-domain access (access to resources beyond your organization’s boundaries), and trust relationships (agreements between service and identity providers).

As a result, the login process is simpler and faster for those with the right credentials, especially in complex IT infrastructures.

Single Sign-On (SSO)

Single sign-on, or SSO, refers to a mechanism used to authenticate users for various applications without making them use multiple sets of credentials. As you may have noticed, it provides similar results to what I explained about identity federation. The main difference is in how they work.

Single sign-on uses what’s called centralized authentication, where someone can authenticate just once. After that, they’re authenticated for a myriad of resources and applications. And it only requires them to use one password. This delivers improved security, simplified administrative elements, and a stronger user experience — mainly thanks to reduced password fatigue.

The whole point of Identify and Access Management is to control and keep tabs on your organization’s resources and software. By interconnecting applications and using streamlined authentication and password policies, the process becomes much simpler for all parties involved.

Here are the stages I tend to find in an effective IAM process:

1. Identity verification: This involves the authentication of users trying to gain access to your systems. In this step, you’ll find methods like multi-factor authentication, biometrics, and passwords.
2. Access permissions: With the user’s identity verified, the process jumps into the access permissions stage, which shows which resources a user can access based on user roles and policies.
3. Monitoring: Effective IAM systems track patterns and user activities constantly. It warns of security threats or if someone tries to use an application or resource suspiciously.
4. Logging: Each time someone accesses a resource, it gets recorded. All user actions get logged, too. This makes for an easier audit and reporting process.

IAM also maintains effectiveness by using multiple policies, permissions, and roles. Policies act as definitions of your security measures. As a result, the rules are applied consistently across all systems.

Roles create groups out of permissions. Those roles get attached to user groups, like “Admins” or “Contributors,” so the users in those groups must stick to the rules and permissions applied.

When I worked as a web designer, part of my job was to handle Identity and Access Management with strong password generation and multi-factor authentication. During that time, I discovered several benefits of IAM.

Enhanced Security

I’ve seen firsthand how an IAM system can streamline security for an entire organization.

One client of mine experienced a data breach, and we eventually figured out it was because an ex-employee still had access to important resources.

Incidents like these, however, decreased significantly thanks to the implementation of Identity and Access Management.

We mainly eliminated issues with ex-employee access by ensuring a complete de-provisioning and offboarding process.

Other tactics and tools that help with enhanced security include multi-factor authentication, real-time monitoring, and the enforcement of the principle of least privilege — or only giving users the access they truly need.

Improved Compliance

I can tell you one thing for certain: messing with a compliance audit is a major pain. With GDPR and HIPAA, your organization may end up being approached for a security and privacy audit, so it’s essential to prepare for such a moment.

Never again do I want to scramble to prove that I’ve implemented the right access controls. Never again do I want to scrape together pieces of an audit trail I didn’t properly organize before. That’s what IAM does for you. It helps you not only abide by data protection policies, but it also allows you to have audit reports in place to quickly show compliance.

Enhanced User Experience

For both consumer products and organizational passwords, SSO eliminates so many frustrations that come with multiple passwords and high-security login pages.

This is particularly true for remote teams. My experience as a remote worker used to involve countless password resets and issues with logging into multiple websites.

Along with SSO, several elements of IAM help to streamline my user experience.

There’s adaptive authentication — a tool that lets you log in if the system already knows you — and tools for biometrics that let me log into accounts with thumbprint or face scans.

Operational Efficiency

I love IAM for efficiency. In the past, I’d have to manually provision new user accounts and then revoke access to accounts when someone departed. The vast majority of those processes now get automated by IAM.

That’s all thanks to self-service capabilities from IAM. With self-service, the system admin no longer has to approve dozens of access requests on a weekly basis.

IAM also involves centralized policy management, so all your systems maintain the right policies and procedures for security — since it’s all controlled from one dashboard. All of these elements help to free up IT resources and remove the need for manual interactions.

Identity Centralization

I like to look at identity centralization as the “all-knowing” control center for an organization.

Before IAM, you’d have to work through a complex, manual puzzle to figure out who had access to what.

Now, there’s a single, unified view of user identities across your entire organization. You receive a clear picture of access reports, your security strategy, and policies.

That not only helps you out with your organization’s digital landscape, but it’s essential for pulling up data when an audit occurs.

Every Identity and Access Management system I’ve encountered has a robust set of technologies and tools.

I don’t think you can call it an IAM if you’re just implementing one technology like multi-factor authentication. You need multiple components working together to streamline your workflows and manage everything from access control to digital identities.

IAM Solutions

You have several IAM platforms to choose from. The ones I like the most offer collections of features, so you receive tools for multi-factor authentication, lifecycle management, and other elements packed into one.

Here are the best IAM tools from my experience:

• Okta: Known for its user-friendly interface, Okta offers a cloud-focused solution with excellent integration options and user access controls. You get features for lifecycle management, single sign-on, and multi-factor authentication.
• Microsoft Azure AD (Active Directory): This is Microsoft’s IAM solution. It provides a cloud-based interface but integrates well with local systems, too. I like it for its integrations with Microsoft 365.
• Ping Identity: Mainly for enterprise organizations, Ping Identity boasts a strong IAM system with tools for API security and access management.

Beyond that, I suggest looking into other IAM platforms like ForgeRock, CyberArk, and Oracle Identity Management.

Tip: Do your best to test out a handful of IAM systems before you commit to one, since you may find that one interface or feature set works better for your organization.

Cloud-Based IAM

In the previous section, I mentioned a few “cloud-based” IAM platforms. What makes those systems different from a local IAM? Well, much like cloud-based file storage, a cloud-based IAM uses a network of servers to grant real-time, remote access to the platform.

A cloud-based IAM offers many other benefits, too:

1. Scalability: Helps with growing your user base and accommodating a growing business.
2. Accessibility: It grants you access to passwords and other IAM resources from anywhere. This is helpful for remote workforces.
3. Ease of deployment: Many of the updates and maintenance tasks get handled by the provider instead of you.
4. Integrations: You can combine a cloud-based IAM with a wide range of cloud applications and services.

I highly recommend cloud-based IAM systems for organizations trying to embrace cloud-first strategies. If you want to modernize your security while improving things like remote access and ease of deployment, a cloud IAM might be for you.

On-Premises IAM

Even with the many benefits of cloud-based IAM platforms, I can’t deny the usefulness of on-premise IAM systems for many organizations. Sometimes, in fact, a local IAM is practically required.

Here’s when you might consider an on-premise IAM:

• If your organization requires very specific compliance or security needs that demand complete control over the IAM system, In short, you’re not willing to surrender some of the control to a cloud provider.
• For industries with strong regulations on data privacy.
• If your organization has already invested a significant amount of resources into legacy software.

There’s no denying that local, on-premise IAM systems give you more control than what you get with a cloud platform. But they also require more maintenance and updates on your end. So, I encourage you to evaluate which one is more suitable for your business.

Privileged Access Management (PAM)

I only have experience with a Privileged Access Management (PAM) tool on one occasion. It was when I implemented it for a client that required protection for its most privileged user accounts.

That PAM tool vaulted the most important account passwords and blocked other access with strong credentials.

It also came with “just-in-time” privilege elevation in case someone needed very brief access to the elevated user accounts. Other than that, PAM includes features for session monitoring and automated password rotation, both of which streamline your user experience and minimize the risk of compromised login credentials.

Multi-Factor Authentication (MFA) Tools

An MFA (Multi-Factor Authentication) tool verifies users multiple times before they log into your systems. I usually see MFA as an app or SMS tool that sends a code to your phone in order to log in alongside a password.

Popular MFA tools include YubiKey and Google Authenticator. I prefer Google Authenticator for its smooth, one-time password process, but many folks like YubiKey thanks to its passwordless authentication.

IAM makes my life so much easier. But there are still some challenges I want to inform you about.

Balancing Security with User Experience

I once designed websites for a law firm that wanted a strict password policy for its databases and website logins. Unfortunately, this led to workers using sticky notes to remember passwords.

I learned that a strong password policy is great, but only if you pair it with a smooth user experience.

Here’s how to balance security with user experience:

• Consider self-service options so users can complete password resets and access requests without bothering the IT team at every corner.
• Implement adaptive authentication that automatically assesses the risk level of each user logging in. This helps block people who shouldn’t be logging in from certain locations or devices.
• Use Single Sign-On (SSO) so your workers can manage complex passwords with ease and not have to write passwords on sticky notes — since they only need one password to log into multiple accounts.

From my perspective, the goal is to always prevent cumbersome tasks for workers. If something takes too long or you require people to remember complicated passwords, they’ll always find ways to make it easier for themselves.

Managing Access Across Hybrid Environments

A hybrid environment — one with both local (legacy) and cloud systems — can become a real issue since you’re combining two starkly different platforms.

Here’s how I’ve learned to avoid problems with hybrid IAM environments:

1. Try your hardest to lean into fully cloud-based IAM solutions. It’s often easier to migrate a legacy system to a cloud platform than try to combine legacy with cloud.
2. Go with a centralized policy management program to ensure the highest level of consistency across your legacy and cloud systems.
3. Consider a federated identity management tool to eliminate multiple passwords and allow users to transition smoothly between cloud and local applications.

There’s really no end to the challenges in managing on-premises and cloud systems together.

You can, however, minimize these issues, especially if you take my advice and either push for a fully cloud platform or use options like federated identity management and centralized policy management.

Ensuring Regular Audits

I used to avoid audits at all costs. They’re tedious and time-consuming. But, with a plan in place, you can easily turn audits from challenges into opportunities.

Here’s how to ensure regular audits without the pain points: Generate regular audit reports and log them in a centralized folder. Also, consider adding an automated tool for monitoring — this way you don’t have to dig around to find information for an audit. Lastly, create a schedule to review everything from user access rights to audit processes.

Addressing Insider Threats

I read about this all the time. A large corporation experiences a crippling data leak only to find the culprit was an insider, often a disgruntled employee with vengeance on their mind.

To address these insider threats, you must add a Privileged Access Management solution to your stack of IAM tools. This protects your most important credentials and resources, keeping out lower-level employees who shouldn’t have access.

In addition, I like to recommend monitoring for anomalies and hosting training for security awareness. With those two, you’re fighting ignorance. Never let yourself, or your employees, get too comfortable.

Make sure you have the monitoring in place and other employees who are willing to be whistleblowers.

I’ve formulated several best practices for Identity and Access Management based on my own experiences and mistakes. I encourage you to read these before you pick an IAM platform.

If I ever have to remember a password again, I might go crazy. That’s because I have filled my personal and business life with IAM tools for remembering passwords, creating strong ones, and allowing me to log into multiple platforms without using sticky notes.

That’s the beauty of Identity and Access Management.

You can ease several pain points for your organization, too. Look into the IAM platforms I talked about above, and use my tips to ensure your IAM strategies include the right tools and best practices along the way.