What is identity and access management (IAM)?

Discover what identity and access management (IAM) is and how it keeps an organization’s data and resources secure.

What IAM is and what it does

Regardless of where employees are working, they need to access their organization’s resources like apps, files, and data. The traditional way of doing things was to have the vast majority of workers work on-site, where company resources were kept behind a firewall. Once on-site and logged in, employees could access the things they needed. Now, however, hybrid work is more common than ever and employees need secure access to company resources whether they’re working on-site or remotely. This is where identity and access management (IAM) comes in. The organization’s IT department needs a way to control what users can and can’t access so that sensitive data and functions are restricted to only the people and things that need to work with them. IAM gives secure access to company resources—like emails, databases, data, and applications—to verified entities, ideally with a bare minimum of interference. The goal is to manage access so that the right people can do their jobs and the wrong people, like hackers, are denied entry. The need for secure access extends beyond employees working on company machines. It also includes contractors, vendors, business partners, and people working on personal devices. IAM makes sure that each person who should have access has the right level of access at the right time on the right machine. Because of this, and the role it plays in an organization’s cybersecurity, IAM is a vital part of modern IT. With an IAM system, the organization can quickly and accurately verify a person’s identity and that they have the necessary permissions to use the requested resource during each access attempt.

How IAM works

There are two parts to granting secure access to an organization’s resources: Identity management and access management. Identity management checks a login attempt against an identity management database, which is an ongoing record of everyone who should have access. This information must be constantly updated as people join or leave the organization, their roles and projects change, and the organization’s scope evolves. Examples of the kind of information that’s stored in an identity management database include employee names, job titles, managers, direct reports, mobile phone numbers, and personal email addresses. Matching someone’s login information like their username and password with their identity in the database is called authentication. For added security, many organizations require users to verify their identities with something called multifactor authentication (MFA). Also known as two-way verification or two-factor authentication (2FA), MFA is more secure than using a username and password alone. It adds a step to the login process where the user must verify their identity with an alternate verification method. These verification methods can include mobile phone numbers and personal email addresses. The IAM system usually sends a one-time code to the alternate verification method, which the user must enter into the login portal within a set time period. Access management is the second half of IAM. After the IAM system has verified that the person or thing that’s attempting to access a resource matches their identity, access management keeps track of which resources the person or thing has permission to access. Most organizations grant varying levels of access to resources and data and these levels are determined by factors like job title, tenure, security clearance, and project. Granting the correct level of access after a user’s identity is authenticated is called authorization. The goal of IAM systems is to make sure that authentication and authorization happen correctly and securely at every access attempt.