definition of terms
Identity and Access Management (IAM) is a framework of policies, processes, and technologies for managing digital identities and controlling access rights. The goal 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 component 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 posed by phishing, insider threats, or privileged abuse.
Meet compliance requirements
Regulations such as GDPR, HIPAA, SOX, DORA, and NIS2 require traceable processes for user access, authorization, and data processing. IAM ensures auditability, transparency, and standardized governance processes.
Increase productivity
Single sign-on (SSO) enables employees and partners to quickly access 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 permissions are automatically assigned, adjusted, or revoked—e.g., in the event of job changes, projects, or offboarding. This reduces risks associated with orphaned accounts or excessive rights.
Typical IAM functions
- Central user management
- 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 handles the central management of digital identities and their access rights within an organization. Technically, an IAM is based on several core functions:
Authentication: Users verify their identity—for example, via password, token, or multi-factor authentication (MFA).
Authorization: After successful authentication, the system decides which applications or resources the user is allowed to access based on roles or policies.
Provisioning & deprovisioning: IAM systems automatically assign the appropriate access rights upon entry, role change, or departure—even for a limited period of time.
Centralization & automation: Access to cloud and on-premises 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 comprehensive 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 and on-premises) and can be scaled flexibly. The goal is to give the right people the right access at the right time—no more, 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 automatically and transparently.
PAM comes into play when particularly sensitive permissions 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.