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Password & Authentication Policy
Password & Authentication Policy
Company Name
Effective Date
Policy Owner
Approved By
Chief Information Security Officer
1. Purpose & Scope
(a)This policy defines the Organization's requirements for the creation, management, and protection of passwords and authentication credentials across all information systems, applications, and services.
(b)This policy applies to all employees, contractors, and third-party users who authenticate to the Organization's systems, whether using passwords, multi-factor authentication, single sign-on, or other credential-based mechanisms.
(c)The Chief Information Security Officer shall be responsible for defining authentication standards, approving authentication technologies, and ensuring compliance with this policy across the Organization.
2. Password Requirements
(a)Passwords shall be a minimum of 14 characters in length and shall incorporate a mix of uppercase letters, lowercase letters, numbers, and special characters. Commonly used, previously breached, or easily guessable passwords shall be prohibited.
(b)Users shall not reuse any of their previous 12 passwords. Passwords shall be changed immediately upon suspicion of compromise and shall not be shared with any other person under any circumstances.
(c)Passwords shall not be stored in plain text, written on paper, or saved in unencrypted files. Users requiring password management tools shall use only the Organization-approved password manager application.
3. Multi-factor Authentication
(a)Multi-factor authentication shall be required for access to all Organization systems, applications, and services that contain or process Confidential or Restricted data. MFA shall also be required for all remote access and privileged account usage.
(b)Approved multi-factor authentication methods include hardware security keys, authenticator applications generating time-based one-time passwords, and push notifications through the Organization's approved authentication application.
(c)Users shall register at least two authentication factors to ensure continued access in the event of loss or failure of a primary authentication device. Recovery procedures shall require identity verification by the IT Help Desk.
4. Privileged Access Management
(a)Privileged accounts, including system administrator, root, and service accounts, shall be managed through the Organization's privileged access management solution with enforced password vaulting, session recording, and just-in-time access provisioning.
(b)Service accounts and application credentials shall use strong, unique passwords that are rotated at least every 90 days. Service accounts shall be scoped to the minimum permissions required and shall not be used for interactive login.
(c)All privileged access events shall be logged, monitored, and reviewed. The Information Security team shall investigate anomalous privileged access patterns and shall report findings to the CISO on a monthly basis.
5. Compliance & Policy Review
(a)The IT department shall conduct quarterly audits of password and authentication compliance, including password strength analysis, MFA adoption rates, privileged access certification status, and authentication-related incident metrics.
(b)Violations of this policy, including sharing passwords, disabling MFA, or misusing privileged access, shall result in disciplinary action proportionate to the severity of the violation, up to and including termination of employment.
(c)This policy shall be reviewed at least annually by the CISO in consultation with the IT department and Legal Counsel. Updates shall reflect advances in authentication technology, changes in the threat landscape, and updates to NIST and ISO 27001 guidance.
The guide
Everything you need to know about the password & authentication policy
What Is a Password and Authentication Policy?
A password and authentication policy defines how employees create, store, and manage credentials for company systems. It sets minimum requirements for password strength, mandates multi-factor authentication where appropriate, and bans risky habits like reusing or sharing passwords. The policy is one of the simplest, highest-impact security controls a company can put in place because weak credentials remain a leading cause of breaches.
Why Companies Need a Password and Authentication Policy
Stolen or guessed credentials open the door to most cyber attacks. A clear policy raises the baseline for every account, reduces the odds of a successful breach, and supports compliance with standards that require strong authentication. It also removes ambiguity for employees, replacing guesswork with concrete rules about length, complexity, rotation, and the use of password managers and second factors.
What a Password and Authentication Policy Should Include
Set minimum length and complexity aligned with modern guidance, which favors long passphrases over frequent forced resets. Require multi-factor authentication for email, remote access, and admin accounts. Prohibit password sharing and reuse across systems, recommend an approved password manager, and define how credentials are reset and how compromised accounts are handled quickly.
Questions about the password & authentication policy
Modern guidance from bodies like NIST discourages routine forced changes because they lead to weaker, predictable passwords. Instead, require long passphrases, enforce multi-factor authentication, and reset only when there is evidence of compromise. This approach is both more secure and less frustrating for staff.
Yes, MFA blocks the vast majority of account takeover attempts even when a password is stolen. Prioritize it for email, VPN, admin, and any system holding sensitive data. It is one of the most cost-effective security controls available.
Password managers are strongly recommended because they generate and store unique, strong passwords for every account. Provide an approved company tool so employees do not resort to insecure spreadsheets or reused passwords. Include usage guidance in the policy.
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