What Is The Purpose Of Identity And Access Management?
August 25th, 2021

Businesses require robust security protocols to protect their data, including information about the company and customers. The purpose of identity and access management (IAM) is to provide a high level of security while still allowing those with proper credentials to access the parts of the system they regularly need to use. As a leading Okta partner, Squareball is the trusted team to work with for all your IAM solutions. 

Identity Management And Access Management

Access management and identity management are two similar protocols that are often confused as the same thing. However, there is a difference between identity management and access management. The differences are key to effective security. 

Identity Management

Identity management is essentially the gatekeeper to your company's systems and data. Users’ credentials are added to the identity management database and are checked when the user tries to log in. While online apps may only require an email address and password, companies typically need stronger protection.

With more people now working from home, there is a greater need to protect data and increase the security of business systems. This means that user credentials must be comprehensive and updated regularly. In addition, the credentials of users who have left the company should be removed from the system as soon as possible.

Access Management

Unlike identity management, this protocol does not store user data. However, it refers to the identity management database to carry out its checks. 

Once a user logs into the system, they need to access their particular area within the company. Because access management can refer to identity management data, it does not require any additional login information. 

When a user selects an area of the system, the access management protocol will check to see if the user has the appropriate credentials. If they do, then they are granted access. If not, they won’t be able to get in.

Additional Purposes Of Identity and Access Management

IAM has a role that transcends the authorization of users. Some companies use the data collected by the protocol to tighten their security even further. 

Fraud Prevention

Businesses are always looking for ways to minimize fraud both from internal and external sources. IAM is used to help track internal fraud committed by employees who abuse their access privileges. 

It is possible for IAM to detect fraudulent transactions based on predetermined criteria. The system can be set to send an alert if fraudulent activity is detected. 


Identity and access management is also used to investigate money laundering and suspicious activity. 

You may find that IAM is a valuable asset when proving compliance to regulatory requirements and data protection. Reports can be compiled from the data if there are requests from local authorities. 


So, what is the purpose of identity and access management? It is there to keep your computer systems secure while monitoring for any fraudulent activity. While identity and access management is vital for security, other precautions such as effective security training of employees and enforcing regular password changes are also essential.

For further reading, check out our other articles like Who Uses Okta.