Password Management Policy Template

Password Management Policy

Purpose of Password Management Policy

This Password Management Policy sets out [Company Name] expectations and requirements for the creation, use, protection, and recovery of passwords and related authentication credentials. The purpose is to reduce the risk of unauthorized access to company systems, protect sensitive data, and ensure consistent procedures for password lifecycle management.

Scope

This policy applies to all employees, contractors, temporary staff, consultants, and third parties who access [Company Name] information systems, applications, devices, or network resources. The policy covers local account passwords, network accounts, cloud services, and privileged accounts unless a separate privileged access policy applies.

Password Creation and Complexity

Users must follow these rules when creating passwords for company accounts:

• Passwords must meet the minimum complexity requirements set by IT, typically including a minimum length, a mix of character types, and avoidance of common words or patterns.
• Users must not use easily guessable information such as their name, username, or company name as part of a password.
• Password reuse across corporate and personal accounts is prohibited. Each business account must have a unique password.

Multi-Factor Authentication

Where available and required by IT, multi-factor authentication (MFA) must be enabled for access to company email, remote access, cloud applications, and any system storing sensitive or regulated information. MFA methods approved by IT should be used according to configuration and guidance from the IT team.

Password Storage and Sharing

Passwords and authentication credentials must never be stored in plain text, written on notes in public view, or shared by insecure methods. Approved password managers may be used for storing credentials when authorized by IT. Sharing of account credentials is only permitted where a business need exists and a temporary, documented approval is in place.

Password Expiration and Rotation

Passwords must be changed according to the schedule defined by IT. Users must change passwords immediately if there is any suspicion of compromise. Automatic prompts for password change must be followed within the required timeframe.

Password Reset and Recovery

Password reset and account recovery procedures must follow IT-approved processes to verify identity before access is restored. Self-service reset tools may be used where configured, and users must follow the secure steps provided by IT.

Privileged Accounts

Accounts with elevated privileges require stronger controls. Privileged accounts must use unique, complex passwords and MFA. Use of privileged accounts must be limited to approved tasks and monitored by IT.

Logging and Monitoring

Authentication events and password-related activities may be logged and monitored for security and compliance purposes. Users should be aware that repeated failed login attempts or other anomalous activity may trigger additional verification or account suspension.

Access Controls and Account Provisioning

Account creation, modification, and deactivation follow the company access control processes. Managers must request access changes in accordance with provisioning procedures and ensure accounts are disabled promptly when no longer required.

Training and Awareness

[Company Name] will provide guidance and training on secure password practices and the use of approved authentication tools. Employees are expected to complete required training and apply best practices in daily work.

Approval Process

Requests for exceptions, temporary credential sharing, or alternative authentication methods must be submitted to IT and routed through the employee's manager. Managers are responsible for reviewing business justification and ensuring the request aligns with operational needs. HR may be involved when requests affect employment terms or access related to personnel status. Final approval for exceptions will be documented and recorded by IT, and any approved exceptions will include an expiration date and compensating controls where appropriate.

Non-Compliance

Failure to comply with this Password Management Policy may result in disciplinary action up to and including termination of employment, depending on the severity and impact of the violation. Non-compliance may also result in temporary suspension of system access, mandatory remedial training, and reporting to appropriate management. Security incidents resulting from policy violations will be investigated and may lead to additional actions proportionate to the risk and harm.

Note

This policy may be updated periodically to reflect changes in technology, risk, and business needs. Employees are responsible for reviewing and following the current version of the policy. For questions or clarification, employees should contact HR and the IT helpdesk in accordance with company procedures.