There are dozens of password managers available today, but not all businesses have adopted the practice of using them to store passwords yet. The password management tool is perhaps one of the greatest assets to the modern business. With cybersecurity threats constantly on the horizon, the modern business not only has a moral obligation but a legal obligation as well to protect sensitive information. If your business stores and/or manages customer data, a password manager should be at the top of your list as priorities.
Let’s take a look at five important reasons why you should invest in a corporate password manager.
1. Teaching Employees Better Practices
Often, it’s not even your cybersecurity measures that are the problem. Most people don’t think hard enough about the passwords and break some pretty important rules regarding password creation. Using a password manager can help you reinforce password best practices and prevent your employees from creating poor passwords.
Some common password mistakes include:
- Using personal of company info in passwords. We’ve all had a “lastnamefirstnamebirthday” password before. This is about as poor as it gets when it comes to a password.
- Using the same password across multiple accounts. A password manager can help create unique passwords for every site/app you use, so duplicates can become a thing of the past.
- Putting a one or a zero at the end of a password. This doesn’t make the password more unique. In fact, it can make it easier to hack.
- Using old passwords. Passwords should be changed at least every 90 days for maximum security. Passwords greater than a year old are more vulnerable.
Using your password manager, you can create and enforce better password practices. There’s no excuse for poor passwords since most password management apps come with a unique password generator anyway. You can customize the number of characters and several other options to get the perfect password.
2. Cost Vs. Breach Costs
Companies will often invoke the “it’s a cost we can’t afford” excuse when it comes to password managers. The fact is, paying for a password manager is a cost-effective way to protect your business, and with the average data breach cost sitting at between $1.25 and $8.19 million dollars. A password management service will cost less than $100 per month (depending on the number of users and service you need). Does your business have $1-$8 million laying around for legal costs and damages?
A slower response time to a data breach can massively increase those costs, and many businesses don’t even catch onto the breach until it’s affected dozens or even hundreds of users. A single password breach could wreak havoc in your business and may even cost you a good portion of your customer base.
Essentially, the investment of less than a hundred dollars per month could save you millions in the future. It may save your entire business one day!
3. Managing Passwords Is Simple But Effective
With a password manager, keeping passwords secure and managed is easier than ever—and more effective than it’s ever been. Password managers are easy to use, with simple interfaces where you can see all of your passwords at a glance, group them together in folders or categories, and change passwords with a single click.
You’ll have a master password that accesses the account, and, of course, you can set up multi-factor authentication to ensure no unauthorized users are accessing the master account. Managing passwords seems like such a simple step to take to protect your business, and while it is simple, that doesn’t mean it’s any less effective. In fact, managing passwords is one of the best steps you can take to protect your business.
4. Store, Manage, and Create
Aside from storing and managing passwords, a password manager can also help you generate more secure passwords. Some managers also have encrypted folders where you can store important company information or paperwork. The password creation feature makes creating strong passwords quick, easy, and less tiresome. In addition, most password managers will notify you when passwords are outdated, compromised, or in need of an update.
Some services even offer dark web monitoring and other cybersecurity measures to ensure your business is protected across the web.
5. Cloud Storage And Backups
What happens when your passwords get deleted, lost, or you lose access to the account? Luckily, most password managers operate on the cloud, so there will always be backups of your information. Cloud storage is secure and easily accessible (for those with the right credentials). Password managers are especially effective for remote teams that need access to the same accounts from different geographical locations.
A password manager is essentially the most affordable and effective cybersecurity tool at your disposal. You must start with password management first. With a good base in secure passwords, your other cybersecurity measures might prove ineffective.
The Bottom Line
Whether you’re a startup just getting ready to open its doors or an established corporation welcoming it’s one-millionth customer, the security of your passwords should be a top priority. You can take the hassle and worry out of generating, storing, and managing passwords by using a password manager. Who knows—it might even save your business one day.