What is the function of a password manager in your business?

A password manager is a tool that helps businesses of any size keep track of credentials and implement role-based password distribution and control.

A business that introduces an automated cybersecurity tool (like a password manager) lowers the chances and the cost of a data breach by 65.2%.

So, what functions should a password manager serve for your business to reach this goal?

What is the main function of a password manager in a business?

The main objective of a password manager is to protect business data from costly cyber threats.

Specifically, a password manager allows you to achieve this purpose by performing two main functions.

These functions solve the underlying causes that lead to cyber threats. Therefore, they have a direct link to preventing common cyber crimes.

The two most critical functions of a password manager are:

To reduce human error.

Human error element is found in approximately 90% of data breaches. That does not necessarily mean that people make terrible mistakes that immediately lead a business to cyber-attacks.

Sometimes simple (unintentional) practices accumulate and put data at risk. For instance, employees send a plain-text password in an email or become victims of social engineering attacks.

The function of a password manager is to reduce these errors. A reliable password management tool can achieve that by providing an alternative that replaces all insecure data management practices.

Therefore, a password manager should serve you the following:

Instead of storing plain-text passwords, the tool encrypts them. It only decrypts credentials locally on the person’s device.
Recognizes fake login fields (in fraudulent phishing attacks) and does not automatically fill in the sensitive data. If a tool does not fill in a password, a person can double-check the correctness of the website domain.

Another significant part of data breaches happens due to weak and stolen passwords. Companies usually fall victim to credential stuffing, brute force, and other attacks. The underlying reason behind all of them – mismanaged credentials.

If an employee has too many passwords to remember, naturally, he will start writing them down (insecurely), or reuse them on multiple accounts. These two practices lead to as much as 80% of all data breaches.

Therefore, another function of a password manager is to provide your employees with a way to safely handle large numbers of credentials without the need to simplify or reuse them.

So, a password manager should:

Securely store all passwords, so employees do not need to remember them. The only password a person has to remember is a Master Password (it unlocks the business vault);
Facilitate password creation processes by providing a password generator tool. This helps people create strong credentials within a few clicks;
Provide Two-factor authentication, so that no unauthorized external party could access the account.

PassCamp – your business partner in password management

PassCamp – a business password manager – serves the most critical password management functions relevant for every business.

This tool successfully helps your employees build the right data management habits by providing secure and reliable means to handle sensitive business credentials. Therefore, PassCamp performs the two most critical functions that any business would benefit from a password manager.

Try out a reliable business password manager and strengthen your business immunity against damaging cyber threats.