Password managers are some of the simplest and most affordable tools available to the modern business, and yet, a large percentage of small (and large) businesses still aren’t taking advantage of them. The reason for this is anyone’s guess, but it’s likely a combination of old habits and a lack of understanding about what a password manager actually does. A password manager can become so much more than just a secure place to store digital passwords.
In this guide, we’ll take a closer look at how using a password manager for business can not only help the business save time and money, but also increase cybersecurity, create a more informed workforce, and potentially prevent a serious data breach.
1. The Average Cost of A Password Breach
Perhaps the most compelling reason to use a business password manager has to do with the cost of a data or password breach. This is nothing to turn your nose up to. A data breach costs an average of about $150 per record, so even small businesses will feel the pain of such a breach. Let’s say you’ve had 1,000 records breached. You just lost around $150,000. There’s a good chance your company doesn’t have a handy $150k lying around.
The thing about data breaches is that nearly 80% of them can be linked to compromised passwords. Aside from the monetary costs, of course, your business could also incur a much greater cost: the cost of a ruined reputation. Some of the largest businesses in the country have suffered data breaches and experienced a huge drop in revenue and customers following the breach. Small businesses have a much harder time recovering from such a thing.
In the end, the cost of a data breach goes far beyond the financial implications, and all of the implications combined can lead to ruin for the business.
Most of today’s password management services are cloud-based, meaning all of the information is stored on the cloud and can be accessed from anywhere by whoever possesses the “master password”. This level of accessibility is especially useful for remote teams, large businesses with multiple locations, or someone who moves around a lot for work.
Accessibility and security are the top priorities for today’s password managers, and you’ll find the ease of use is a serious advantage with remote teams. There’s a good chance many businesses will retain the remote work model following the pandemic, so getting set up with a password manager for the team is something of a priority.
3. Sharing Passwords
Some company portals will have universal passwords, but the last thing you want your team to do is to share passwords across emails, on paper, or over the phone. It’s easier and far more secure to create a team password vault in a password manager, ensuring that only certain people have access to the vault. This helps increase security, and ensures that everyone is following the password policies.
4. Creating Stronger Passwords
Did you know that over half of all internet users reuse their passwords? Some users recycle their passwords as many as 14 times. So, what’s the issue? For starters, reusing a password is the golden rule of passwords and internet security (or rather, not reusing passwords). Passwords should always be unique and never reused. There are some strict password rules to follow, including not using company or self-identifying information like birthdays, addresses, employee ID numbers, etc.
Using a password manager gives your team access to the password generator feature, which can create a unique strong password with the click of a button. You can control the number of characters in the password, the letters and numbers, and much more. This helps build better password habits and makes creating better passwords simple and quick.
5. Password and Sensitive Document Storage
If you’re storing your passwords anywhere but in a password manager, they’re probably at risk. Many companies and everyday people simply resume memorable information in passwords, or, in lieu of this, store passwords in Google or Word Docs, on sticky notes, or other unsecured places. This is a huge mistake when it comes to password storage, as Word and Google docs aren’t as secure as you’d think, and sticky notes can get lost or stolen.
Password managers provide secure, easy storage for passwords, secure documents, and much more.
As the business grows, so do its security needs. Password managers are scalable tools that grow with the business, providing protection and security from day one all the way to the day you open your tenth location. Using a password manager ensures your security needs are always met, and the affordability of password managers makes them a tool you simply can’t do without.
7. More Informed Workforce
Using a password manager has the added effect of fostering a more informed workforce. This benefits the company and society as a whole. Your employees will be more knowledgeable about cybersecurity and password protection, which helps your business save time, money, and potential reputation costs. The employee takes that knowledge home with them, hopefully sharing it, and helping to create a more secure internet altogether. There’s no reason not to use a password manager!