The Rise of the Risk Exception: Why Vault & Manage PAM Strategies Are No Longer Enough.

Introduction:

The traditional approach to Privileged Access Management (PAM), often referred to as the "Vault & Manage" strategy, has been a staple in cybersecurity for years. It’s simple: privileged credentials are stored in a vault and rotated periodically. However, as the digital landscape evolves and the need for more flexible, dynamic access controls increases, Vault & Manage strategies are beginning to show significant limitations.

One of the critical weaknesses is the rise of the risk exception, where businesses continuously bypass or modify PAM policies to accommodate critical business operations. This results in an over-reliance on manual overrides, which, in turn, exposes the organisation to high-risk vulnerabilities.

The Vault and Manage Reality

It’s easy to argue that Vault and Manage could work everywhere if only the business changed its systems, but that’s rarely practical. In reality, most opt for risk exceptions. I’ve made this argument myself, and the outcome is always the same: risk exceptions become the norm.

This blog will explore the rise of the risk exception, explain why Vault & Manage PAM strategies are no longer enough, and outline how a Zero Trust-aligned PAM approach can help organisations reduce risk and streamline access management. The Rise of the Risk Exception:

In an ideal world, every privileged access request would go through a strict approval process, ensuring that only authorised individuals have the right level of access at the right time. Unfortunately, in the real world, this often doesn’t happen. Organisations are increasingly facing situations where the need for quick access overrides established PAM controls, leading to risk exceptions being raised.

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Here are a few key reasons why risk exceptions are on the rise:

1. Business Continuity Demands: The need for continuous, uninterrupted access to critical systems is non-negotiable. When employees or third-party vendors need immediate access to high-value systems, they often bypass the controls designed to protect those systems, raising concerns about ensuring business continuity.

2. Complex Legacy Systems: Many organisations still rely on legacy systems that weren’t designed with modern security practices in mind. Vault & Manage strategies require these systems to adapt to modern PAM tools, but in many cases, the friction is too high. As a result, businesses opt for workarounds, further exacerbating the issue of risk exceptions.

3. Lack of Flexibility in Legacy PAM Tools: Traditional Vault & Manage PAM solutions often rely on static access controls, which don’t adapt well to the fast-paced, dynamic nature of today’s IT environments. When these solutions are forced to accommodate specific use cases or urgent business needs, exceptions are frequently raised to allow access, often without proper oversight.
   

The Consequences of Risk Exceptions:

Raising risk exceptions is not without consequences. The fundamental issue is that each exception weakens the overall security posture of the organisation. Over time, exceptions become normalised, leading to a culture where access control is seen as an obstacle rather than a strategic enabler.

Key consequences of excessive risk exceptions include:

1. Increased Attack Surface: Each risk exception potentially opens the door to an attack. Attackers who gain access to systems through exception-based processes may exploit vulnerabilities that are not adequately monitored.

2. Lack of Accountability: When exceptions are raised regularly, it becomes difficult to track who had access to what and when. This lack of accountability makes it easier for malicious actors or insider threats to go unnoticed.

3. Regulatory and Compliance Risks: Compliance frameworks require organisations to demonstrate robust access controls. Frequent exceptions undermine an organisation’s ability to meet these requirements, exposing it to potential fines or other legal consequences.

Why Vault & Manage PAM Strategies Are Falling Short:

The traditional Vault & Manage PAM model relies heavily on static controls—storing, rotating, and managing privileged credentials in a secure vault. While this approach has worked in the past, it falls short in today’s dynamic, cloud-driven, and hybrid environments.

Here’s why Vault & Manage is no longer enough:

1. Inability to Address Dynamic, Contextual Access Needs: Vault & Manage strategies are primarily designed for static environments. In contrast, today’s enterprises require dynamic, context-aware access that adapts to the risks associated with each session.

2. Increased Operational Complexity: As organisations grow and diversify, the Vault & Manage approach becomes more difficult to scale. Managing and auditing the vast number of privileged credentials across multiple systems and platforms is a complex and error-prone task.

3. A Lack of Integration with Business Workflows: Traditional PAM tools are often siloed from business processes, which means that employees and third-party vendors cannot easily access critical systems without raising exceptions. This creates friction and delays, leading to the very risks that PAM was designed to mitigate.

The Path to Zero Trust-Aligned PAM:

The solution to the rise of risk exceptions lies in adopting a more adaptable, Zero Trust-aligned PAM strategy. Zero Trust PAM moves away from the reliance on perimeter-based security and establishes continuous verification and context-aware access.

Key elements of a Zero Trust-aligned PAM model include:

1. Just-in-Time (JIT) Privileges: Rather than granting standing privileges, JIT access provides the right level of access only when needed and for a limited time. This reduces the opportunity for risk exceptions, as access is granted based on real-time context and risk factors.

2. Continuous Authentication and Monitoring: Zero Trust PAM continuously authenticates users and devices, ensuring that access is always verified. Real-time monitoring of privileged sessions helps to identify and mitigate potential threats immediately.

3. Dynamic Access Policies: Zero Trust PAM enables the creation of dynamic access policies based on the context of the request. This includes factors such as the user’s role, location, time of access, and the sensitivity of the system being accessed.

4. Seamless Integration with Business Workflows: Unlike Vault & Manage solutions, Zero Trust PAM is integrated with business workflows, allowing privileged access to be granted without the need for workarounds or risk exceptions.

Conclusion:

The rise of the risk exception is a clear signal that traditional Vault & Manage PAM strategies are no longer enough to meet the demands of modern cybersecurity. By adopting a Zero Trust-aligned PAM approach, organisations can reduce the need for exceptions, streamline access management, and enhance their overall security posture.

It’s time for organisations to embrace a more flexible, risk-based approach to PAM—one that enables security without compromising business agility. Explore the Smart Access PAM Framework