Explanation of terms
Identity and Access Management (IAM) is a framework of guidelines, processes and technologies for managing digital identities and controlling access rights. The aim is to ensure that only authorized persons have access to IT systems and sensitive data in a traceable, compliant and secure manner.
Why is IAM important?
A modern IAM system is a business-critical building block for security, compliance and efficiency. The need arises in almost every company that manages sensitive data, operates hybrid IT infrastructures or is subject to regulatory requirements.
The 4 most important reasons for IAM
Strengthen security
IAM protects against unauthorized access through central authentication, role-based access control (RBAC), multi-factor authentication (MFA) and just-in-time access. This minimizes the risk of phishing, insider threats or privileged misuse.
Meeting compliance requirements
Requirements such as GDPR, HIPAA, SOX, DORA or NIS2 demand traceable processes for user access, authorization assignments and data processing. IAM ensures auditability, transparency and standardized governance processes.
Increase productivity
Single sign-on (SSO) gives employees and partners quick access to all the systems they need - with just one login. At the same time, support costs are reduced thanks to self-service functions, automated workflows and clearly defined roles.
Automate access management
IAM systems automate provisioning and deprovisioning: user accounts and authorizations are automatically assigned, adjusted or withdrawn - e.g. for job changes, projects or offboarding. This reduces risks from orphaned accounts or excessive rights.
Typical IAM functions
- Central user administration
- Authentication (MFA, SSO, biometric)
- Authorization based on roles or attributes
- Access certifications and reviews
- Reporting & auditing
- Interfaces to AD, HR systems, cloud platforms
How does an IAM system work?
An Identity and Access Management (IAM) system takes over the central administration of digital identities and their access rights within an organization. Technically, an IAM is based on several core functions:
Authentication: Users prove their identity - for example with a password, token or multi-factor authentication (MFA).
Authorization: After successful authentication, the system decides on the basis of roles or guidelines which applications or resources the user may access.
Provisioning & deprovisioning: IAM systems automatically assign the appropriate access rights when users join, change roles or leave - even for a limited period of time.
Centralization & automation: Access to cloud and on-prem systems, applications, APIs or IoT devices is managed via a central dashboard, often with self-service functions for users.
Single Sign-On (SSO): Log in once, access multiple systems - with just one digital identity.
Monitoring & Audit: IAM solutions offer extensive reporting functions for monitoring, compliance and security analysis.
Integration: A wide variety of systems are integrated via standards such as SAML, OIDC or SCIM, from Active Directory to cloud platforms.
Modern IAM systems support hybrid IT landscapes (cloud & on-premises) and can be scaled flexibly. The aim is to provide only the right people with the right access at the right time - no more, but also no less.
IAM and PAM: Why both are important
IAM regulates who has access to which systems or data based on roles, departments or tasks. It controls standard access in an automated and traceable manner.
PAM is used where particularly sensitive authorizations are involved, such as admin accounts or critical systems. It allows targeted control and monitoring of privileged access.
Both systems fulfill different tasks, but complement each other. Only when they work together can a holistic access management system be created for everyday users as well as for privileged roles.