Top 10 IAM Risks Organizations Face and Solutions to Rectify Them

What Is IAM?

Identity and Access Management (IAM) controls who gets into company systems and what they can do once inside. Companies use IAM to create rules about who can access different parts of their systems. These rules help them manage employee accounts and control what information people can see or change.

What Is an IAM Risk Management?

IAM risk management helps companies find and fix problems or loopholes in how employees and unauthorized personnel can access their systems.

Companies do this to stop unauthorized people from accessing private information and to follow security rules. Security teams regularly check their systems and make improvements to prevent problems before they happen

Why Do IAM Risks Matter?

Data Breaches: When companies don't control access properly, people can steal private information. This causes serious problems for both the company and its customers. This can lead to expensive compliance fines and data breaches that can cost an average of 4.88 Million USD.
Compliance Violations: Companies must follow specific rules about protecting information. When they don't control access properly, they break these rules. Breaking these rules leads to compliance fines and legal problems like lawsuits that hurt the company's reputation and finances.
Operational Setbacks: Bad access control creates many everyday problems. Employees might waste time waiting for access they need, or people might accidentally change things they shouldn't touch. These problems slow down work and waste company resources. Good access control helps everyone work efficiently while keeping information safe.

Top 10 IAM Risks Organizations Face

1. Weak Password Policies

Companies often let employees create passwords that are too simple or let them reuse old passwords across different accounts. This makes it very easy for attackers to break in and steal important information. When companies require strong passwords, they block most attempts to break in through password-based attacks.

How Do You Avoid Weak Passwords?

Make everyone use longer passwords with different types of characters - this actually works better than just asking people to be "more secure"
Force people to change passwords on a schedule and prevent them from using old passwords again - this keeps attackers from using passwords they might have stolen before
Give everyone a password manager so they can create and remember complex passwords without writing them down

2. Flawed User Access Management

Many companies don't have good processes for giving new employees their computer access or removing access when people leave. Sometimes ex-employees can still get into systems months after leaving, or new employees can't do their jobs because they can't access what they need. This creates real security problems that attackers can easily exploit

How Do You Improve User Provisioning and Deprovisioning?

Set up automatic systems that create and remove user accounts when HR processes start or end - this removes human error
Check all active accounts every few months to catch anything that slipped through the cracks
Create standardized access packages based on job roles so new employees get exactly what they need, nothing more or less

3. Overprivileged Access

Many employees have access to more systems and data than they need to do their jobs. This creates unnecessary risk - if an attacker compromises their account, they can access everything that employee could access. Even good employees sometimes make mistakes with access they shouldn't have had.

Conduct periodic access reviews to identify overprivileged accounts
Use the principle of least privilege when assigning roles
Monitor access logs to detect unusual activity

4. Insufficient Monitoring of Privileged Accounts

Administrator accounts and other powerful user accounts need extra attention because attackers specifically target them. Without careful watching, someone could use these powerful accounts to steal data or damage systems, and no one would notice until it's too late.

How Do You Avoid Insufficient Monitoring of Privileged Accounts?

Use security tools that watch administrator activities in real-time and record what they do
Create automatic alerts that notify security teams when administrators do unusual things
Put extra security controls around administrator accounts, like requiring approval for certain actions

5. Shadow IT Usage

Employees often download and use applications without asking the IT department. When people use these unauthorized programs, they create security problems the company doesn't know about. Security teams need to find these unauthorized programs and help employees use approved options instead.

How Do You Prevent Shadow IT?

Install security tools that show when people download unauthorized programs
Teach employees why using unauthorized programs creates real security problems
Create a process for employees to request and quickly get approval for new software they need

6. Unpatched Software Vulnerabilities

When companies don't update their software regularly, attackers can break in using known security problems. Security teams need to install updates quickly when software companies release them. This stops attackers from using old security problems to break into systems.

How Do You Prevent Unpatched Software Vulnerabilities?

Use programs that automatically install updates when they become available
Keep track of every program running on company computers
Update the most important programs first when new security fixes come out

7. Third-Party Access Risks

Companies often give outside contractors access to their systems. Without proper controls, these outside users can create security problems. This is why, companies need clear rules about how outside users can access their systems.

How Do You Prevent Third-Party Access Risks?

Give outside users temporary accounts that expire when their work finishes
Check the security practices of companies before giving them access
Watch and record everything outside users do in company systems

8. Outdated IAM Solutions

Using outdated IAM systems can leave organizations vulnerable to modern cyber threats. Legacy solutions may lack features to handle current security challenges, making it harder to protect sensitive data. Upgrading to modern IAM tools improves security and efficiency.

How Do You Avoid Outdated IAM Solutions?

Assess current IAM systems for functionality gaps
Invest in cloud-based or AI-driven IAM solutions
Ensure compatibility with existing infrastructure during upgrades

9. Lack of Multi-Factor Authentication (MFA)

Relying solely on passwords for authentication makes systems vulnerable to credential theft. MFA adds an extra layer of security, making it harder for attackers to gain access. Implementing MFA reduces the likelihood of unauthorized access.

How Do You Use MFA Effectively?

Choose MFA methods appropriate for different user groups (e.g., biometric, SMS, or app-based)
Test the user experience to ensure smooth adoption
Regularly review and update MFA configurations

10. Poor User Behavior and Training

People make mistakes that cause security problems when they don't know better. Without proper training, employees might accidentally create security problems. Companies need to keep teaching employees about security.

How Do You Prioritize User Behaviour?

Develop engaging and accessible security training materials
Use phishing simulations to assess and improve employee responses
Provide regular updates on emerging threats and best practices

How to Conduct the IAM Risk Management?

Risk Assessment: Identify and evaluate potential IAM risks based on business impact.
Access Review: Audit current access controls and permissions to ensure they match organizational needs.
Policy Development: Establish clear guidelines for identity and access management practices.
Technology Evaluation: Assess IAM tools and technologies to address identified vulnerabilities.

What are the 5 IAM Risk Management Strategies?

Use Multi-Factor Authentication in Critical Systems

On the whole, companies using MFA or adaptive MFA by using a system like using a password and a one-time code sent to a device adds a lot more security to your database.

This extra step stops attackers even if they steal someone's password. Using multiple security checks keeps accounts safer by making sure people really are who they say they are.

Regular Update and Patching for IAM Software

Updating IAM software regularly helps guard against vulnerabilities that hackers could exploit. Software creators frequently release patches to fix weaknesses, and applying these quickly reduces the chance of breaches.

Staying current with updates is a simple yet effective way to strengthen security.

Automated User Provisioning and Deprovisioning Processes

Using automation to manage how users are added or removed from systems helps avoid mistakes that could leave accounts open unnecessarily. Automation makes sure that access is given and removed based on job roles, reducing unnecessary access. This approach simplifies management while improving overall accuracy and security.

Periodic Reviews and Audits of Access Permissions

Organizations need to check who can access their systems on a regular schedule. These reviews find old accounts that should be removed and other problems that create security risks.

When companies take time to review permissions regularly, they can adjust access based on what employees currently need to do their jobs, rather than what they needed months or years ago.

Cybersecurity Training for Employees

Companies need to teach their employees about online security risks. This includes showing them real examples of dangerous emails and explaining which websites they shouldn't visit. Regular training sessions keep everyone updated on new security threats.

When employees understand these risks, they make better decisions about security in their daily work.

How To Pick an IAM Risk Management Tool

When selecting an IAM risk management tool, consider the following:

Scalability: Pick a tool that works well now but can handle more users and systems as your company grows. The tool should maintain good performance even with increased usage and data.
Compatibility: The tool must work properly with your current software and systems. Test integration capabilities before purchasing to avoid technical problems later.
User Experience: Select software that people can learn quickly and use effectively. Complex tools often lead to mistakes and security problems.
Reporting Features: Good tools provide detailed information about who accessed what and when. They should generate reports that help identify problems and track improvements.
Support and Updates: Choose companies that respond quickly to problems and regularly improve their software. Good support prevents security gaps from staying open too long.

How Infisign Helps Manage IAM Risks

Infisign provides tools that help organizations handle identity and access management more effectively. Their main features include:

Advanced multi-factor authentication that requires multiple steps to verify users
Automated systems that handle giving and removing access as employees join and leave
Constant monitoring that alerts security teams about suspicious activities
Rules for access that organizations can adjust based on their needs
Tools that work well with existing company software and systems

Why Choose Infisign for Better Compliance and Cybersecurity

Companies need reliable identity and access management to protect themselves from current security threats. When companies handle these security risks actively, they protect their important information better and follow security rules more easily.

IAM software like infisign, helps you put governance and access policies in place that help your company meet HIPAA, GDPR, CCPA, and other compliance requirements with ease.With brute force protection, adaptive MFA, PAM, and conditional access control Infisign is one of the most reliable and scalable IAM software to work with. Want to know more? Reach out for a free trial!