Admin accounts, root access, service accounts, technical users, or cloud roles – almost every IT environment includes accounts that are allowed to do more than others. They can be used to operate systems, install updates, manage applications, and resolve incidents. This makes them highly sensitive points in IT security. A single compromised privileged access can be enough for criminals to bypass security mechanisms and move through a network unnoticed. Access to sensitive data and changes to systems become possible at any time – posing a major risk to companies. Modern Privileged Access Management reduces this threat.

Privileged Access Management, or PAM for short, comprises strategies, processes, and technologies that enable companies to control, secure, monitor, and audit privileged access and permissions.

In this context, “privileged” means that access rights and permissions go beyond the standard rights assigned to identities, users, accounts, processes, and systems within an IT environment. They reach deeper into applications, databases, and networks. For this reason, privileged access is particularly sensitive and must be controlled more strictly than regular user access.

The goal of PAM is therefore clear: It helps companies reduce attack surfaces and minimize the damage caused by unauthorized access to highly sensitive systems and data – ideally preventing it altogether.

Privileged accounts – also referred to as administrator accounts or privileged users – are user accounts with extended permissions. In most cases, they are reserved for employees who need to control and modify IT resources, such as system administrators or IT managers. The following accounts are generally considered privileged accounts:

• System, network, database, or domain administrator accounts
• Root or superuser accounts
• Service accounts
• Technical user accounts
• Cloud roles and cloud administrator accounts
• DevOps and developer access, especially when it includes access to production environments
• API keys, tokens, SSH keys, and other secrets
• Emergency accounts
• External service provider accounts, for example when partners, maintenance companies, or IT service providers access internal systems
• Shared accounts

With its focus on securing privileged accounts, Privileged Access Management complements Identity and Access Management, or IAM. While IAM determines which digital identities may access which systems and applications – the keyword here is authorization – PAM focuses on the particularly critical access rights within this area.

By creating more transparency, control, and monitoring for privileged access, PAM adds a security-critical layer to IAM. A modern IAM concept remains incomplete without PAM because privileged access is not protected separately. In other words, IAM without PAM only covers part of the security picture.

Anyone who has followed the threat landscape in recent years knows that attacks on privileged accounts have not only increased in number. They have also become more sophisticated. Attack vectors are expanding, and protection against cybercriminals and attackers who have already entered networks and systems is more necessary than ever.

The greatest benefit of PAM is that it addresses several parts of the attack chain and can therefore help interrupt attacks early. PAM makes an important contribution to security, transparency, and compliance.

SECURITY: By specifically limiting privileged access, companies reduce their attack surface. People, processes, and applications receive only the rights they need to perform their specific tasks. This lowers the risk that cybercriminals can use compromised accounts for further attacks. Organizations replace permanent admin rights with time-limited access, protect critical credentials centrally, and detect suspicious activities more quickly.

TRANSPARENCY: At the same time, PAM provides the necessary overview. Companies can better see which privileged accounts exist, who accesses which systems, and which actions are performed with elevated rights. This is particularly important for shared accounts, external service providers, or complex IT environments. In an incident, logs and traceable access histories make analysis easier. Questions such as what happened, which systems were affected, and which measures are necessary can be answered on the basis of sufficient information.

COMPLIANCE: With a PAM solution, companies can demonstrate that privileged rights are not assigned without control, but are tied to clear rules, approvals, and timeframes. This supports requirements related to access control, data protection, IT security, and risk management. PAM can also improve operational stability because excessive permissions are reduced and unintended changes to critical systems can be prevented more effectively.

Anyone who is tempted to sit back because they already use access management should wait a moment. Traditional access management falls short. In many cases, manual password lists, shared admin accounts, or uncontrolled service accounts still prevail – and they themselves create security risks, not least because traceability is lacking. In addition, admin rights are often permanently active, which expands the attack surface. Especially in hybrid IT environments, cloud setups, and remote scenarios, traditional rights management is no longer sufficient.

Modern PAM solutions do not treat privileged access merely as a question of permissions. What matters is not only who has access, but also when, why, for how long, and under which conditions this access is granted.

There is no doubt that PAM is necessary for companies. However, that does not mean they should hastily switch to any solution available. To benefit in the long term, companies need a clear view of the current situation, a target state, and a PAM strategy derived from both. The following steps have proven to be a practical roadmap for companies.

1. Establish the Foundation: Define PAM Policies and Roles

IT projects have one thing in common: Before practical implementation begins, the foundation must be created. In a PAM project, those responsible should first focus on roles and responsibilities for privileged access. They need to clarify which users and accounts require privileged access in the first place, which ones currently have it, and whether changes are necessary. They also need to define access levels.

Policies help streamline processes – including later requests for access rights. Companies that define in advance how requests, approvals, and revocations of permissions are handled can act in a more standardized, usually less error-prone, and faster way. This also makes it easier to control PAM rules.

2. Find the Right Technical Fit: Choose a PAM Solution

Finding the right solution in a crowded vendor market is a major challenge in the identity security context. For PAM, however, there are several criteria that can help with the decision. Scalability, integration capabilities, and user-friendliness should be at the top of the list. Vendors should provide meaningful information on these points and offer demos so that companies can get a feel for the application.

Because there is a significant security difference between traditional and modern PAM solutions, companies should also assess the functional scope carefully. Important aspects of modern PAM include:

• User Lifecycle Management
• Just-in-Time Access
• Privileged Credential Management
• Native protocols
• Secrets and machine identities
• Database Access Management

You can read more about what exactly these aspects involve in our blog post “Must-Haves: Six Features Modern PAM Tools Should Offer.”

3. Implement the PAM Solution

After analysis and planning comes the actual implementation of the PAM solution. To ensure that companies do not merely introduce it technically, but implement it effectively, they should consider the following best practices:

• Consistently apply least privilege: A simple principle applies to privileges: as much as necessary, as little as possible. This means that users, processes, and applications receive only the permissions they need for the task at hand.
• Introduce strong authentication: A password alone is not sufficient for privileged access. Additional protection is needed, for example in the form of multi-factor authentication.
• Rotate credentials regularly: Passwords, keys, and other credentials for privileged accounts should not remain unchanged indefinitely. Regular or automated rotation reduces the risk of stolen or outdated credentials being misused.
• Monitor and document privileged sessions: To keep elevated access traceable, organizations should rely on logging, monitoring, and session recording.
• Separate duties and permissions: A clear separation of responsibilities reduces the risk of errors, misuse, or uncontrolled changes.
• Plan training: PAM is more than technology. Employees need an awareness of where risks exist. Only when people and technology work together does improper use become less likely.

4. Evaluate PAM Effectiveness and Review It Continuously

This is where many companies make a mistake: They consider the PAM project complete. In reality, they need to continuously review its effectiveness. Regular audits are necessary to evaluate the PAM policies defined at the beginning and adjust the PAM strategy if needed. Vulnerability assessments and penetration tests are also proven ways to gain clarity about the effectiveness of the solution.

Privileged Access Management is no longer a nice-to-have for companies. Organizations that fail to protect privileged access risk giving cybercriminals easy access to sensitive information. But not all PAM is created equal. When selecting a solution, organizations should therefore also make sure that it meets modern requirements. Applications that rely solely on password vaults, static permissions, and manual approval processes often fall short in dynamic IT environments. What is needed today are solutions that control privileged access contextually, limit it in time, monitor it, and integrate seamlessly into cloud, DevOps, and remote access scenarios.