Using a password manager is an excellent way of enhancing your organization’s security while making the process of gaining access to important data more convenient. Additionally, this type of solution can help you boost productivity and help you save costs.
When considering the implementation of a password manager in a business setting, it’s essential to address the value and return on investment (ROI). This is why, in this article, we will go through the main benefits of password managers for business, their pros and cons, and how you can choose the best solution for your company.
The Impact of Inefficient Password Management
It is estimated that there are about 2,200 cyber attacks per day. In the first six months of 2022 alone there were 2.8 billion malware attacks and 255 million phishing attacks (and that’s just the ones that were reported), while 71% reported falling victim to ransomware last year.
There’s little doubt that cybersecurity is a growing concern for business, no matter their size. Luckily, one of the easiest solutions to deal with these issues is to use a password manager.
A password manager stores all your passwords securely, so users don’t need to worry about generating or remembering strong variants. This is important because, as we have briefly covered, there are several issues associated with inefficient password management. For instance:
- Productivity loss: Forgetting passwords or using various passwords for different accounts can lead to productivity loss, as users have to spend time resetting passwords or requesting new ones if they have forgotten them – both time-consuming activities that can affect performance.
- Security threats: Several potential risks are associated with weak or reused passwords. For example, more chances of suffering data breaches, attackers using the same credentials to gain access to other accounts, and of course the consequential financial loss caused by these actions. Inefficient password management can also lead to loss of data due to accidental deletion.
- Compliance challenges: Inefficient password management can lead to compliance violations if sensitive data is accessed by unauthorized people, which can also lead to additional costs and affect your business’ trust, credibility, and reputation.
Analyzing the Value of a Password Manager
Using a password manager can help your organization work more securely, boost productivity, and save money. So, let’s go through each of the benefits of a password manager in some more detail.
The main security advantages of using password managers include:
- Complex passwords: Password managers generate and store secure, strong, and unique passwords for each account and encrypt them. These passwords are typically long, random, and complex, and therefore difficult to guess or crack. And, even if a hacker does gain access to them, they might not be able to read them unless they have the password encryption key.
- Minimized human error: A password manager can also help reduce password-related mistakes and risks by, for example, automatically filling people’s username and passwords, analyzing the strength of chosen credentials, and sending periodic reminders to update them.
- Centralized administration: Password managers can help you manage password policies and access controls from a single platform (even if you are syncing various devices). They, in fact, act as a vault that consolidates all credentials in a single place that is protected from intrusion.
Password managers can also help your boost your organization’s productivity through:
- Quick account access: Managers can autofill login credentials, saving time, reducing frustration, and lessening the risk of typos or misspellings that can cause login failures or expose your password to potential attackers. Password managers often support SSO (Single Sign-On), where a user can rely on a single set of login credentials for the session.
- Secure password sharing: A password manager can also help team members safely share passwords without compromising security. For example, many solutions allow you to share credentials without revealing the password.
- Efficient onboarding and offboarding: Lastly, a password manager can aid in streamlining employee onboarding and offboarding processes. For instance, when a new employee joins a company, a manager can allow administrators to create a set of predefined passwords for each account and, when someone leaves, it can quickly evoke access to all company resources by changing the stored password.
When considering the pros and cons of password managers, it’s also important to remember that the solutions can also help your business save costs in several ways:
- Lower IT support expenses: Password managers decrease password reset and account lockout-related IT support costs. This means that your IT team will have to deal with less requests, allowing it to focus on more critical tasks. Plus, managers are very easy to use and require minimal training.
- Reduced data breach risks: Avoiding data breaches and regulatory fines also save costs, as password managers reduce the risk of both by generating strong, unique passwords and encrypting them with advanced encryption algorithms. This prevents attackers from accessing and/or reading the data.
- Improved regulatory compliance: Password managers also support better compliance with data protection regulations (such as GDPR or HIPAA), minimizing the risk of penalties by ensuring all sensitive data can be encrypted and audited if needed.
Estimating the ROI of a Password Manager
Estimating a password manager ROI involves considering the costs of implementing and managing the password manager versus the benefits it provides. The steps to estimate the ROI of a password manager include:
- Cost factors: Firstly, you should identify the costs of implementing and managing a password manager. This should include direct costs, such as licensing fees and installation and ongoing maintenance expenses. Although password managers are typically very easy to use, don’t forget to keep in mind rollout and potential best practice training costs.
- Benefit evaluation: When estimating the ROI of a password manager for business, you also need to quantify potential benefits. This can include productivity gains, cost savings, security improvements, and time savings (as a manager will, for example, reduce the number of requests to the IT team and cut down training costs and security risks).
- Alternative comparison: Lastly, ensure you always compare a password manager’s ROI to alternative password management methods or solutions. You can do this by dividing the estimated cost savings and risk reduction by the total cost of implementing and managing the various password managers.
Learn what password management techniques business-only password manager uses to improve password security.
Final Thoughts: Should You Invest in a Password Manager?
Password security is, today, more important than ever before. As organizations have to deal with increasing data breaches and cyber attacks, it’s vital to take proactive measures to protect sensitive data and resources.
In this article, we have covered the main benefits of password managers for business (such as improving security, boosting productivity, and saving costs). We’ve also gone through different ways in which you can calculate a password manager value and ROI, emphasizing the potential benefits cost factors.
So, do businesses really need a password manager?
One thing is certain: Investing in a password manager is wise for any organization that values security. These solutions don’t just reduce the risk of data breaches; they can also lower IT support expenses, increase productivity, and improve regulatory compliance.
If you are considering investing in a password manager, make sure you do a comprehensive evaluation to determine the best solution for your business. Not all platforms are created equally, and the value of a password manager will depend on its ease of use, reliability, and its ability to protect your sensitive data. For example, your solution should be compatible with your operating system, support your required users or storage capacity, and support your processes.
If you’re looking for a simple password management solution, check Uniqkey. Uniqkey is built with high usability in mind, making it easy for teams to adopt better password habits and efficiently raising security for your organization. Book a demo today to try Uniqkey yourself.