Is Privileged Access Management (PAM) Important for Small Business?

This PAM isn’t the cooking spray or the receptionist from all of our favorite OG workplace comedy. Nor is it Pamm or Pamn, as the Step Brothers may have you believe. Privileged Access Management instead is an important tool that helps companies prevent, or at least mitigate, the damage arising from external attacks as well as from insider negligence.

And in a time when reports are indicating nearly 80% of companies have had to use their cyber insurance, and more than half of those have used it multiple times, there is no better time to leverage each of the tools at your organization’s disposal. So let’s jump right in and discover:

• What privileged access is
• Why it needs to be managed
• How PAM connects to cyber insurance

What is privileged access?

Take a look at your desktop. You very, very likely have applications on your computer that require access, right? And not just any-old, run-of-the-mill password protection either, but specific log-ins and back doors for your organization’s most important apps, things that keep the people around you up and running at all times.

Privileged access points are specially designated permissions that are above and beyond the standard user’s abilities on any given program. Think of it as similar to a key card to get you in a special door in the back room, or a password to get into a swanky club. Whatever the information is that’s being kept safe, it’s always up to a limited number of people that are performing sensitive operations with their access.

The Hidden Risks of Unmanaged Privileged Access

Many organizations underestimate the risks associated with unmanaged privileged access. While administrators may set up access for a new employee or service, they sometimes forget to regularly review these permissions, which can lead to serious vulnerabilities over time.

1. Unmonitored Accounts: When privileged accounts are created but not monitored, they can become a security blind spot. Cybercriminals often target these "stale" accounts because they provide access without detection.
2. Excessive Privileges: When employees or contractors receive broad privileges that go unchecked, they may unintentionally have access to sensitive systems or data unrelated to their roles. If these accounts are compromised, the damage can be severe.
3. Failure to Rotate Credentials: Cybersecurity best practices recommend rotating privileged access credentials regularly to prevent long-term access from being exploited. PAM systems automate this process, eliminating the need for administrators to manually reset passwords.

These hidden risks highlight the importance of maintaining visibility and control over privileged accounts to prevent security lapses.

PAM and Compliance: Meeting Regulatory Requirements

Privileged Access Management is a cornerstone of compliance with many regulations, especially in industries where data protection is critical. Here’s how PAM supports regulatory compliance:

1. GDPR: Under GDPR, organizations must protect the personal data of EU citizens. PAM helps ensure that only authorized personnel have access to sensitive data, reducing the risk of unauthorized access and data breaches.
2. PCI DSS: For organizations handling credit card information, PCI DSS compliance is a must. PAM helps secure access to cardholder data and limits administrative privileges, aligning with PCI’s strict access control requirements.
3. SOX (Sarbanes-Oxley): In finance, SOX requires companies to document and control access to financial systems and data. PAM ensures that access is granted only to authorized users, enabling compliance with SOX regulations.
4. HIPAA: In healthcare, HIPAA requires strict controls over patient data. PAM allows organizations to manage and monitor access to health information, ensuring that only authorized individuals have access to sensitive data.

PAM’s compliance benefits extend to other regulations as well, providing organizations with a comprehensive approach to meeting diverse regulatory standards.

Why PAM?

To manage these types of access points is to first understand what you are even protecting. Some examples of these kinds of privileged accounts include:

• Local administrative accounts: Non-personal accounts providing administrative access to the local host or instance only.
   
• Domain administrative accounts: Privileged administrative access across all workstations and servers within the domain.
   
• Break glass (also called emergency or firecall) accounts: Unprivileged users with administrative access to secure systems in the case of an emergency.
   
• Service account: Privileged local or domain accounts that are used by an application or service to interact with the operating system.
   
• Active Directory or domain service accounts: Enable password changes to accounts, etc.
   
• Application accounts: Used by applications to access databases, run batch jobs or scripts, or provide access to other applications.

As you can see, these are some pretty heavy hitters when it comes to what makes your business tick. And with a major lack of visibility to these privileged users, accounts, assests, and credentials, your long-forgotten accounts can come under attack by those looking to cause some major damage. These accounts may number in the millions, and provide numerous opportunities for attackers.

Another common problem is the over-provisioning of privileges. When privileged access controls are overly restrictive, they can disrupt user workflows which in turn causes frustration and hinders productivity. Yuck. While end users rarely complain about possessing too many privileges – what does that even mean to most people? – IT admins sometimes give end users broad sets of privileges they likely don’t even need, let alone use.

It's become way too easy for attackers to obtain high level account credentials, and it's too hard to discover these attacks after the fact, especially when the goal is to stop them from even happening.

Here’s the super short version: Cyber criminals want in, and if your people have too much access to things they don’t need or use, those cyber criminals will have many ways to compromise your business. PAM stops that from happening by ending unnecessary connections and managing the rest.

The goal of PAM is to reduce opportunities for malicious users to get access, while increasing your control and awareness of the environment.

“Bam!” - Emeril Lagasse

Choosing the Right PAM Solution

Selecting the right PAM solution for your organization requires consideration of several factors:

1. Integration with Existing Systems: The PAM solution should seamlessly integrate with your existing IT infrastructure, including Active Directory, cloud environments, and identity management systems.
2. Scalability: As your organization grows, so will your privileged accounts. Choose a PAM solution that scales with your business to avoid limitations as you expand.
3. User-Friendly Interface: A PAM tool with an intuitive interface makes it easier for administrators to manage access without extensive training. Look for solutions with clear, organized dashboards and easy-to-use permissions controls.
4. Real-Time Monitoring and Alerts: Ensure that the PAM solution includes real-time monitoring and alerting capabilities to promptly detect and respond to unusual activity.

By selecting a PAM solution that meets these criteria, you can create a secure and scalable environment that aligns with your organization’s needs.

Best Practices for Implementing PAM

Implementing PAM is essential, but it’s also important to adopt best practices to maximize its effectiveness. Here are some steps to follow:

1. Least Privilege Principle: Grant users only the access they need to perform their tasks—no more, no less. This reduces the risk of unnecessary access and minimizes potential damage in the event of a breach.
2. Periodic Access Reviews: Regularly review privileged accounts to identify redundant or unused access, adjusting permissions as needed. This can prevent unauthorized access and help you maintain a secure environment.
3. Multi-Factor Authentication (MFA): Always use MFA for privileged accounts. Requiring an additional layer of verification ensures that only authorized users can access sensitive data and systems.
4. Audit Privileged Sessions: Track and log all activity associated with privileged accounts. This includes commands executed, files accessed, and systems interacted with. PAM tools often provide comprehensive audit trails, allowing organizations to detect suspicious activity quickly.

By following these best practices, organizations can strengthen their PAM systems and better protect sensitive assets.

How PAM connects to cyber insurance

Insurance companies are fickle in a lot of ways, but straight forward in many others. Their goal is to protect you in the case of an accident, right? Well, just like wearing your seatbelt, there are plenty of ways for you to increase your odds of safety that make those insurance companies very happy – to the point where they give you breaks for doing so.

Last year, 212.4 million businesses were affected by cyberattacks of some kind. That makes cyber insurance companies very worried about what may happen to you and your business, and understandably so. But much like how Multi-Factor Authentication can help reduce the risk of your business falling under attack from cyber criminals, PAM similarly can make a major difference.

Of note, cyber insurance typically covers first-party expenses, third-party expenses, and cybercrime cost but with the rise in cybercrime the cost of coverage has similarly grown 130% in Q4 2021 alone.

PAM is an information security mechanism that protects your identities with restricted access or capabilities beyond those regular users have. Essentially, PAM helps ensure that users only have access to the resources they need to get their jobs done. It affords organizations the opportunity to manage access for better visibility and control, plus it allows them to verify everything before granting access to data.

At the end of the day, it comes down to security, IT administration efficiency, compliance, and business agility, and PAM covers it all for you in a strong way. Insurance underwriters across the country continually look for PAM controls when pricing cyber policies for their clients. The underwriters also look for ways your organization is discovering and securely managing privileged credentials, plus how they are monitoring those accounts and the means they have to isolate and audit privileged sessions.

Whew, that’s a lot. But it’s all important!

Training and Educating Your Team on PAM

Implementing a PAM system is only part of the solution. Your team needs to understand its importance and know how to use it effectively.

1. Onboarding New Hires: Incorporate PAM education into your onboarding process to ensure that new employees understand the principles of least privilege and proper access protocols.
2. Regular Security Training: Conduct training sessions that cover privileged access best practices, including recognizing phishing attempts and adhering to company policies on sensitive data handling.
3. Enforcing Strong Password Policies: PAM is only effective if your employees use strong, unique passwords. Train your team on password hygiene, emphasizing the importance of avoiding reused or easily guessed passwords.
4. Encouraging Reporting of Suspicious Activity: Encourage team members to report any suspicious access attempts or activity they observe. This fosters a proactive security culture and can help detect issues early.

Educating your team on PAM will strengthen your organization’s overall security and ensure that PAM protocols are consistently followed.

PAM as Part of a Layered Security Strategy

While PAM is powerful, it’s most effective when used as part of a layered security strategy. This approach integrates PAM with other security measures to create a comprehensive defense against cyber threats.

1. Combine PAM with Multi-Factor Authentication (MFA): Requiring multiple verification steps to access privileged accounts provides an extra layer of security, making it harder for unauthorized users to gain entry.
2. Use PAM with Endpoint Detection and Response (EDR): Monitoring endpoints such as workstations and mobile devices can reveal signs of unusual activity that may indicate a security breach.
3. Data Encryption: For particularly sensitive data, encrypting files in addition to using PAM provides additional security. This ensures that even if unauthorized users access data, they cannot read it without the encryption keys.
4. Regular Audits: Perform routine audits of your security practices to ensure each layer is working effectively. Audits provide insights into potential vulnerabilities and opportunities for improvement.

Integrating PAM with other security practices strengthens your organization’s resilience against a wide range of threats, helping you create a robust security posture.

Conclusion

Protect your most sensitive data and access points through a rigid Privileged Access Management system at your organization. And PAM (again, not the receptionist) doesn’t just keep you safe, it saves you money in the short and long term by lowering insurance premiums and preventing possible disaster.

Interested in Privileged Access Management but don't know where to start? Give us a call at (864) 552-1291 and we'll help you evaluate capabilities and options. Also, sign up for PTG Tech Talk for bi-monthly tech news, and consider following us on LinkedIn, Facebook, and Twitter!