Integrating identity and access management and privileged access management for enhanced identity security in financial institutions: A zero-trust approach

Felix Behringer and Patrick Baumann
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Felix Behringer: Cybrex, Germany
Patrick Baumann: EY, KG Wirtschaftsprüfungsgesellschaft, Germany

Cyber Security: A Peer-Reviewed Journal, 2025, vol. 9, issue 2, 114-129

Abstract: This paper explores the critical role of identity and access management (IAM) and privileged access management (PAM) in securing the digital identities of employees within financial institutions. It emphasises identity-centric security as the first line of defence in protecting sensitive data and IT assets, especially in legacy IT environments where technological constraints and regulatory demands pose unique challenges. The paper outlines how integrating IAM and PAM supports compliance with industry regulations and enforces zero-trust principles, ensuring continuous verification and control of privileged accounts. Key concepts such as the confidentiality, integrity and availability (CIA) triad, least privilege and need-to-know principles are examined in relation to data classification and risk management. The paper further introduces a practical framework for transforming legacy IT systems through comprehensive organisational and technical measures. Readers will gain insight into the core PAM controls essential for safeguarding privileged access, including account discovery, session isolation, behavioural monitoring, audit trails and risk-based remediation. By following these strategies, financial institutions can enhance transparency, reduce attack surfaces and maintain full control over privileged activities. This paper equips IT and security professionals with a clear understanding of how to implement robust identity-centric security frameworks tailored to complex legacy environments, supporting operational continuity and regulatory compliance in an evolving threat landscape. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.

Keywords: identity and access management; IAM; privileged access management; PAM; legacy IT systems; zero-trust security; data classification and protection; clean state approach; identity security; account privileges (search for similar items in EconPapers)
JEL-codes: M15 (search for similar items in EconPapers)
Date: 2025
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