No matter the size of your business, a password manager is a useful tool. If you’re not using one, you risk creating organizational chaos as your team might forget their passwords (and lose access to their work tools) or use weak or repeated passwords (putting you at risk of data breaches). In this article, we’ll explain what a business password manager is, why you need one, and the features to look for.
What is a business password manager?
What are the benefits of a business password manager?
Features to look for in a business password manager
What is a business password manager?
Firstly, a password manager is a tool designed to make it easier for you to use the internet safely. A password manager saves and stores your usernames and passwords for websites and apps for you. Your information lives in the cloud, where it’s encrypted and only accessible to you. Once you’ve stored your passwords, your password manager can then autofill website fields to speed up logging in.
A password manager allows you to generate and use complex and unique passwords for every account, preventing password being reused or insecure. Password managers can also hold more than passwords: Standard password managers can store personal information such as your name, address, and social number for easy autofilling.
A password manager for business is functionally the same as a personal password manager, but it gives administrators oversight of their employees’ accounts. Administrators have access to account information, including usernames, passwords, and credit cards, and can manage, grant, and revoke access for all employees.
Using a business password manager greatly enhances your organization’s security and makes it easier for employees to access and share information. Let’s examine some of the business-specific benefits a password manager offers and what you should consider when choosing one.
What are the benefits of a business password manager?
Simply put, many businesses can’t afford not to use a password manager. In a report(ventana nueva) from the Identity Theft Resource Center(ventana nueva) (ITRC), “The number of data breach victims in H1 2024 (1,078,989,742) increased 490% compared to the first half of 2023 (182,645,409)”. Around 900 million victims in Q2 2024 were affected by a credential stuffing attack that targeted customers of the Snowflake cloud service(ventana nueva).
Credential stuffing(ventana nueva) attacks see hackers use lists of leaked credentials to access systems illegally. They’re often automated using bots and are successful because of weak or reused passwords. And poor password practices can cost businesses more than just money.
If a business is affected by a data leak, it risks damage to its reputation, potential fines from data regulators, and loss of income. For a small business, this can be especially damaging. Research from the UK shows that 60% of small British businesses(ventana nueva) that suffered a cyberattack were out of business 6 months later.
Organizations can benefit from using a business password manager because it creates extra layers of security for every worker, even if they don’t have experience in IT or cybersecurity. When workers have access to a safe storage system for their sensitive information, you’re protecting them and your company from being affected by a data leak.
Improved security
A password manager for business creates a single storage space for all information and lets your IT and security teams enforce best practices. Through the password manager, your admins can ensure all workers follow your password policies and create secure passwords with a minimum character length, change weak or reused passwords, and use 2FA.
Enforced data access policies
Data access policies determine which employees have access to what information. They grant access to the right tools for the right people while protecting potentially sensitive information. For example, employees in sales don’t need access to legal service logins. Access should be granted on a need-to-know basis, with permissions that suit every worker.
A good password manager will make it easy to grant employees access to what they need and let admins monitor access to all sensitive data to stay compliant with data protections and regulations such as HIPAA.
Simplified on/offboarding
Onboarding a new employee means setting up a tailored working environment. Using a password manager allows you to create a vault with all the information they need to start working, reducing wasted time and unnecessary negotiation with different areas of the business regarding access. When employees start working, your admins can set up their vault with everything they need. If they leave, admins can revoke access instantly, delete their user accounts, and avoid data leaks.
Safe credential sharing
Sometimes logins and passwords need to be shared between employees. Instead of sending information via email or IM, which isn’t compliant with good data safety practices, employees should be able to create secure links. Some password managers will also allow senders to customize their shared links, both by limiting who can open the link and setting a link expiration date. This creates greater control over sensitive business information.
Time saved for every worker
A password manager saves everybody’s time. For example, an IT team will have fewer requests for password changes or help managing accounts. Employees won’t have to keep reentering the same information or risk being logged out of their work accounts. HR teams can easily set up new starters for properly managed access from day one. Autofilling information makes filling out forms a matter of a few clicks. A business password manager is a productivity tool as much as it is a cybersecurity tool.
Features to look for in a business password manager
A password manager for business should offer more than just a place to store information. It should empower workers to protect themselves online, reduce compliance stress, and make staying safe online simple. Here are some of the important qualities to look for in a business password manager:
- Easy to use: Provide a user interface that helps every worker use it effectively, no matter their tech experience.
- Offers end-to-end encryption: Protect your sensitive business account information by making sure it’s encrypted at all times.
- Supports additional login methods: Support 2FA, passkeys, and biometric login for enhanced security.
- Has security monitoring built in: Help your team find weak and reused passwords, create strong passwords, and spot instances where they can use 2FA.
- Secures your account proactively: Monitor the dark web for data breaches of business information.
- Makes switching easy: Quickly import passwords stored in old password managers from either your browser or other apps.
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