What is identity access management

Identity access management (IAM) creates policies and technologies to ensure correct individuals’ access to company systems, applications, and data. IAM controls user identities, manages permissions, and enforces security protocols to prevent unauthorized access.

Given the frequent negative publicity surrounding corporate and governmental data breaches, this aspect of a company’s cybersecurity has become paramount. IAM protects intellectual property (IP), preserves corporate responsibility, and protects customers and clients from having their data shared illicitly.

IAM’s expanding tech remit

IAM is particularly essential for organizations managing remote teams, using cloud applications, and completing compliance mandates. Remote teams, by their very nature, can be difficult to track and monitor, and may be tempted to use insufficiently secure servers. Cloud applications can be at risk of unauthorized access if improperly secured. IAM steps in to protect these vulnerable touchpoints.

Solutions like Deel IT automate IAM processes, ensuring secure, scalable, and cost-effective access management for global teams.

Why is identity access management (IAM) important for organizations?

IAM is crucial for organizations because it protects sensitive data and ensures that only authorized personnel can access specific systems or information. Without IAM, companies are vulnerable to security breaches, unauthorized data access, and compliance violations.

IAM helps organizations streamline access control, reduce insider threats, and enhance operational efficiency by granting permissions based on roles and responsibilities. For HR, IAM ensures that employees have the tools they need to perform their jobs without jeopardizing security.

What are the key components of IAM?

IAM fulfils the functions described above through four components:

• Authentication. Beyond the basics of password management, modern identity checking uses MFA (multi-factor authentication) which at its most high-tech may include biometric measures such as fingerprint or facial recognition. It may require you to pass anti-bot checks or use more than one device to complete a login process. It can also involve additional devices such as smart cards, swipe cards, VPN devices or other virtual keys.
• Authorization. Whereas authentication identifies that an individual is who they say they are, authorization ensures they can access only the sites, tools, and resources they have been allocated. This allows you to carefully ringfence data so that it is only accessible to individuals who really need it. This is good practice in data handling and helps companies align their policies and procedures with data protection legislation such as GDPR (Europe) and CCPA (California).
• Administration. This is the practical component of any IAM system that manages password resetting, security prompts, temporary lockouts, authorization allocation and other intricacies of data protection. Administration manages the practical steps that you must go through to obtain legitimate system access.
• Auditing and Reporting. This aspect of IAM delivers information about system access and usage, both to protect data, IP, and sensitive corporate information, and to help make efficiency improvements. A&R helps track what systems, processes, and tools users access and when. It can identify patterns of usage that seem suspicious and provide early warnings of system misuse, inappropriate access, or fraud. It can also help demonstrate to stakeholders that existing security measures are working.

These components work together to create a secure and efficient system for managing access.

What types of authentication methods are used in IAM?

IAM systems use various authentication methods to verify user identities, including:

• Password-based authentication – the most common method, requiring you to enter a password that matches key criteria.
• Two-factor authentication (2FA) – this commonly requires a code to be sent to your phone or email account, then supplied to the system in addition to a login and password.
• Multi-factor authentication (MFA) – combines two or more technologies, such as a password and a fingerprint.
• Biometric authentication – uses your unique physical characteristics like fingerprints, facial recognition, or retina scans.
• Token-based authentication – involves a physical or digital token to verify identity. Zoom uses a meeting ID token to allow you into secure virtual meetings, for instance.
• Single sign-on (SSO) – allows users to log in once and access multiple systems without re-entering credentials. An example of this is the “sign in via Google” facility offered by many SaaS platforms.

Employing multiple authentication methods, especially MFA, strengthens security endpoints and reduces the risk of unauthorized access. It also reduces your need to write passwords down as they proliferate. You can easily forget a password, but you cannot forget your own fingerprint.

Benefits of IAM

Implementing identity access management (IAM) conveys six key advantages. These include:

1. Enhanced security – Protects sensitive data by ensuring only authorized users can access critical systems. At a granular level, permissions can be limited only to the systems, tools, and data sources each individual needs within a given timeframe.
2. Improved productivity – Automates access provisioning, reducing delays in onboarding and offboarding. New joiners can be given access to systems as and when they need them, and their permissions levels can be controlled accordingly.
3. Enabled collaboration – Enables teams to access the tools they need while maintaining data security. This allows for the secure use of third-party platforms such as Trello, Zoom, Discord, or Miro.
4. Regulated compliance – Helps companies meet security standards like GDPR, HIPAA, and SOC 2 with access controls and audit logs. Measures can be designed to support localized data protection measures and can be altered as and when new laws or guidelines come into effect.
5. Reduced IT workload – Automates user access management, minimizing manual administrative tasks. The best IAM systems do this while closely monitoring usage and reporting back suspicious patterns.
6. Lowered security risks – Prevents insider threats and unauthorized access by enforcing role-based permissions. Companies are reassured that all employees are given appropriate level of access to customer or client data, IP, and important corporate information.

In essence, IAM streamlines operations, strengthens security, and supports data compliance, making it essential for modern businesses.

What role does IAM play in remote work environments?

In remote work environments, IAM is indispensable for securing access to company systems and data. Without direct oversight of employee access, it is essential to implement robust measures to ensure employees safely access and use systems and data sources, no matter whether they are working from home, in transit, or in a public place.

With employees accessing resources from various locations and devices, IAM ensures that only verified users can log in, often through multi-factor authentication.

Additionally, IAM can enforce policies like limiting access to sensitive data from unsecured networks or personal devices. By implementing IAM, businesses protect their assets while enabling remote workers to perform their roles effectively.

Of course, IAM can only serve this function if you adhere to safe working practices, such as the use of VPNs, secure cloud services, or only working in environments where you can guarantee full privacy.

How IAM contributes to legal compliance and regulatory requirements

IAM ensures compliance with data protection laws and industry standards, such as the General Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), and the Payment Card Industry Data Security Standard (PCI DSS).

In a well-designed IAM system, these protocols and guidelines are baked-in, making it impossible to transgress any local or national regulations. Ideally, such protective measures are automated, and you cannot opt out of their requirements.

The above regulations frequently require organizations to demonstrate who has access to sensitive data and how access is controlled. IAM systems provide detailed audit trails and reports, helping organizations prove compliance and avoid hefty penalties for breaches or non-compliance.

What are the risks of not implementing IAM in an organization?

When IAM is not implemented, organizations face risks both from inside and outside. These include:

• Security breaches – unauthorized users could access sensitive data or systems, leading to data theft or sabotage.
• Insider threats – employees may gain access to resources they do not need, increasing the risks of deliberate misuse or accidental data sharing.
• Compliance violations – failure to manage access can result in non-compliance with legal and regulatory standards, leading to fines and reputational damage.
• Operational inefficiencies – workflows can slow unacceptably when organizations adopt manual processes for granting or revoking access, particularly during onboarding or offboarding.
• Data loss – improper access management increases the likelihood of accidental or intentional data deletion or corruption.

IAM mitigates these risks by automating and enforcing strict access controls. Audit trails and real-time access monitoring can help prevent data loss or breaches, while significantly improving operational efficiency.

How can HR professionals collaborate with IT teams to implement IAM effectively?

HR professionals play a critical role in IAM implementation by providing accurate information about employee roles, responsibilities, and employment status. To do so, they may implement their own identity verification, conduct criminal records checks, and obtain references from prior employers.

Professional and thorough vetting of onboarded candidates ensures IT departments are given all the information they need to assess data access permissions and risk.

HR departments can collaborate with IT teams as follows:

1. Defining roles and permissions – HR can help map out the access requirements for different job functions. They can advise IT of any changes to such requirements.
2. Streamlining onboarding and offboarding – by integrating HR systems with IAM tools, new hires are given access automatically. Departing employees’ access can be revoked promptly too, minimizing the risk of data breaches or corporate espionage.
3. Training employees – HR can educate employees about IAM policies, including password management and recognizing phishing attempts. Such training should be renewed regularly as threats change and IAM technologies develop.
4. Policy enforcement – HR can work with IT to align IAM policies with company guidelines and communicate these policies effectively.

Frequent collaboration between IT and HR ensures that IAM systems are robust and user-friendly. It also makes sure you don’t succumb to password or login fatigue, whereby you begin to become lax in your habits due to over-familiarity.

How can IAM systems measure and evaluate performance?

IAM systems efficiency and effectiveness can be evaluated using the following metrics:

• Access request fulfilment time – this metric measures how quickly access requests are processed.
• Authentication success rates – tracks the percentage of successful logins versus failed attempts.
• Access violations – an automated measure that counts instances of unauthorized access attempts.
• User satisfaction – assesses how user-friendly the IAM system is for employees. This metric requires surveying employees.
• Audit and compliance scores – evaluates how well the system supports compliance with regulations. Third party auditors or legal compliance experts might best evaluate these scores.

Regularly reviewing these and other related metrics helps you identify areas for improvement.

Such auditing ensures IAM system remains effective when large-scale recruitment drives take place, when new systems are implemented, or when the company makes a policy change allowing remote work (for instance).

What are the responsibilities of stakeholders in IAM implementation?

Shaping and implementing IAM involves multiple stakeholders, including:

**HR teams **– these teams provide information about employee roles, manage onboarding/offboarding processes, and enforce IAM policies, as well as educating new hires about their importance.

IT departments – IT designs, implements, and maintains your IAM system, ensuring it integrates with existing infrastructure. They can run security patches, issue new guidance (along with HR) and monitor access patterns.

Compliance officers – ensure the IAM system meets regulatory requirements and supports internal and external audits.

Employees – all employees must adhere to IAM policies, such as using strong passwords and reporting suspicious activity. Regular re-education should take place, to prevent “password fatigue” and other instances of laxity.

Executives – The C-suite approve budgets and policies related to IAM and prioritizes its importance within the organization. Executives provide public reassurance that a company has a reputable approach to IAM.

Each stakeholder’s involvement contributes towards the reinforcement of good IAM.

How is IAM evolving with global workforce trends?

The work of work is rapidly changing, with greater reliance on remote or hybrid working patterns, international collaboration, and a greater reliance on cloud-based servers. Such trends require evolution in AIM policies and technologies.

The four trends that require the most adaptation in terms of IAM policies and protocols are:

1. Remote work – with more employees working remotely, IAM systems are focusing on secure, location-independent access. HR must work with IT to develop robust policies and protocols alongside technologies for secure remote access.
2. Bring your own device (BYOD) – IAM must address security challenges posed by employees using their own personal devices for work. In some instances, it is safer to supply all employees with devices than to allow them to use their own.
3. Cloud adoption – as more organizations migrate to cloud-based systems, IAM solutions must integrate with cloud platforms. These must be vetted and monitored to ensure they maintain the highest levels of data protection and data security.
4. Zero trust security – IAM is shifting toward a zero-trust model, where no user or device is trusted by default, even within the company network. While this may occasionally frustrate employees who struggle to log in, it is preferrable to the disastrous consequences of data breaches and reputational loss.

These trends highlight how flexible and scalable IAM solutions can support an evolving workplace.

Deel IT supports identity access management (IAM)

Deel IT streamlines IAM by integrating automated access control, device lifecycle management, and compliance enforcement into a single platform. The platform also provides:

• Synchronization with HR systems to grant and revoke access instantly, reducing manual IT workload.
• Role-based access control (RBAC) to ensure employees use only the tools and data they need, minimizing security risks.
• Zero-touch device and software deployment: devices are preconfigured with IAM policies, enabling secure access from day one.
• Multi-factor authentication (MFA) and single sign-on (SSO) support strengthen authentication and keep users’ data secure, while making safe access easier.
• Compliance-ready IAM with global audit logs to track access activity, helping businesses meet regulations like GDPR, HIPAA, and SOC 2.
• Global scalability: standardizes IAM policies across 130+ countries with real-time visibility into access and security risks.

With Deel IT, businesses simplify IAM, enhance security, and stay compliant while reducing their IT overhead.