Corporate Password Management: The End of Excel and Sticky Notes

Password management in many companies is handled via a file on a shared drive. This solution works until someone leaves or the file ends up in an attacker's hands. Let's look at how to set this up correctly and without friction.

TL;DR — Key Highlights

• The user should remember one strong password; the manager handles the rest.
• Shared passwords should reside in group vaults with access logging.
• Mandatory password resets every 90 days is an obsolete practice — MFA and breach monitoring are better.
• When an employee leaves, only the passwords they had access to are changed.

What a Well-Organized State Looks Like

An organized state means every employee uses a password manager with a separate personal vault and access to the specific group vaults they need. Passwords are randomly generated, long, and unique for every service, and the user does not know them by heart.

Administrative access is separated: it is used only for administration, requires MFA, and is stored in a separate vault with a limited circle of people and access logging.

Why This Is Essential

Reused passwords remain the primary reason for business account breaches.

• If a password is leaked on a third-party site, the attacker will try that same combination on your systems.
• Shared passwords eliminate traceability — you don't know who performed which action.
• When an employee leaves, you don't know which passwords they knew.
• Manually created passwords are short and predictable, even when they meet complexity rules.

How to Get Started — Recommended Process

1. Choose a password manager with business features and shared vaults.
2. Audit existing shared passwords and import them into vaults by department.
3. Change all passwords that were previously stored in files or emails.
4. Implement MFA everywhere it is available, starting with the most critical systems.
5. Conduct a 30-minute training session and install browser extensions.
6. Enable credential breach monitoring and establish an alert response procedure.

Password Policy — Recommendations

Common Mistakes

The most common mistake is implementing the tool without a cleanup. If you import old, leaked passwords into the vault, you have only moved them.

The second mistake is excluding leadership. Executive accounts are the most frequent targets, so implementation must include them — without exceptions.

How VitalIT Can Help

At VitalIT, we implement password managers, organize vaults, and provide training. Check out our cybersecurity services.

Related: Passkeys: The Future of Passwordless Logins and Phishing Simulations.

Frequently Asked Questions (FAQ)

Is a password manager safe?

Yes. Data is encrypted on the device and the provider has no access to it if a zero-knowledge architecture is used.

What if we forget the master password?

Business versions allow recovery via an administrator or a recovery key that you keep separately.

How much does it cost?

A few euros per user per month — typically the cheapest security measure with the highest impact.

Can we use a browser-based password manager?

It is sufficient for personal use, but not for a company — it lacks shared vaults, oversight, and logging.

What about service accounts?

They are stored in a separate vault with limited access, and passwords should be long and rarely used manually.