5 Things to Consider When Choosing a Password Manager

Because we live in an increasingly digital world, it shouldn't come as a surprise that hackers will use any means necessary to steal passwords. It's become critical for businesses in all industries to protect their online accounts to avoid a password breach. Not only are breaches costly, but they can also damage a company's reputation.

To protect company assets, it's crucial for IT professionals and business owners to consider using a password management system.

Below, we’ll to discuss the pros and cons of using a password manager and some key considerations to take into account when choosing software that meets your needs.

Pros and cons of password managers

A password manager, sometimes called a password vault, is a software application that can store and organize employee login credentials, like usernames and passwords. Typically, password managers will automatically sign users into their various online accounts after entering a master password.

Most browsers have some password storage features — consider how Google Chrome will prompt users with a "Save Password" option when logging into a site online.

There are both pros and cons to using password management software. These are some of the pros of using a password manager:

• Easy to use
• Capable of creating strong, random passwords
• Protects passwords with encryption
• Prevents imposter websites from executing phishing scams
• Tracks services you have accounts with
• Users do not need to memorize passwords

However, there are also cons associated with password management software to be aware of:

• Additional risk if the software fails or is breached
• You may forget or lose the master password to access all other passwords
• One password breach can lead to further breaches
• Password managers are major targets for hackers
• They can contain security bugs

Password managers are generally worth the small amount of risk. They ease the burden of remembering every password, and for many businesses, that can improve productivity and efficiency.

The majority of password managers are safe to use because they are cloud-based, meaning there are security measures in place to protect whatever passwords are encrypted in the vault.

Now that you know the advantages and disadvantages of using a password manager, let's go over what you should keep in mind when choosing the right one to fit your business's needs.

Key considerations to make when choosing a password management software

Did you know that more than 35% of small enterprises still use weak passwords in their daily operations? Using weak or easy-to-guess passwords can open your organization to breaches and data theft.

If you think your organization would benefit from password management software, continue reading to learn what you should consider when choosing which software will work best for you and your team. Here are some questions to help guide your decision making:

1. Is this password manager compatible with my organization's hardware and software?

Because employees in your company use various devices, you must ensure the password manager you choose will be compatible with all of them. Whether your company uses macOS, Linux, Windows, or Android, it's important that the manager can be used in tandem with these operating systems (OS).

2. What protection does this software provide?

Password management software should include strong security measures and end-to-end encryption. This will provide your company with peace of mind to ensure everyone can access the passwords they need without fear of them being compromised. Consider a password manager that uses two-factor authentication or biometrics for access control purposes.

3. Does this software get updated regularly?

The best password managers release frequent security updates to ensure their clients are protected. Software developers need to release updates to improve the software's functionality, such as adding new features, extra security measures and maintaining ease of use for the user.

4. How much will password management software cost me?

Based on the features they offer, password managers for business purposes range in price — some cost only a couple of dollars a month, whereas others are more expensive. Typically, the more expensive the software is, the more features and capabilities it offers.

Some password managers offer free trials so you can test it out to see whether it will work for your organization. Examples of business password managers include BitWarden, Keeper, Dashlane, NordPass, and LastPass.

5. Is this software easy to use, and does it have additional features?

It's vital that the password manager you end up choosing is easy to use and has enough features to suit your business needs. Many online reviews of password managers include screenshots or videos of the user interface (UI).

Take time to do some research and speak with your professional network and your IT department to help you choose the best software for your company.

Password managers can be a game-changer for you and your business. Cybersecurity threats are becoming more common, so protecting your company should be prioritized.

Use password management software to benefit your organization

Password managers do a solid job of closing authentication and encryption gaps across your entire organization. Be sure to do your due diligence and take time to decide which password management software will work best for your business.