Business Password Policy

Business Password Policy

This Business Password Policy (the Policy) is established to protect the confidentiality, integrity, and availability of the organization's information systems and data by prescribing minimum requirements for the creation, use, storage, and management of authentication credentials.

WHEREAS

WHEREAS the organization described as Company Name: has a duty to protect sensitive information and systems under its control;

WHEREAS the employees, contractors and authorized third parties who access organizational resources must follow consistent password standards to reduce the risk of unauthorized access and data compromise;

WHEREAS this Policy is intended to establish enforceable minimum controls, assignment of responsibilities, and procedures for password and credential management effective date: .

SCOPE

This Policy applies to all personnel, contractors, consultants, temporaries, and other workers at the organization and its affiliates who access information systems, including but not limited to workstations, servers, cloud services, mobile devices, and applications. Systems covered:

SCOPE OF WORK

PASSWORD CREATION REQUIREMENTS

All user account passwords must meet the following minimum criteria unless an approved exception exists:

• Minimum length: characters.
• Composition: must include characters from at least three of the following: uppercase letters, lowercase letters, numbers, and special characters.
• No use of dictionary words, user-identifying information, or commonly used passwords.
• Passwords must be unique across organizational accounts and must not be reused within prior iterations.

PASSWORD CHANGE, ROTATION, AND REVOCATION

Passwords must be changed immediately upon evidence or suspicion of compromise. Routine rotation is required every days unless multi-factor authentication or risk-based controls justify a longer interval as approved by IT Security. Temporary or emergency access credentials must be revoked within hours of issue unless extended by documented authorization.

PASSWORD STORAGE AND HANDLING

Plaintext passwords must never be stored or transmitted. All passwords shall be stored using strong, industry-standard salted hashing algorithms, or managed exclusively within approved password management tools. Users are prohibited from writing passwords on paper in unsecured locations or saving them in unencrypted files. If a password manager is authorized, it must be approved by IT security and configured with a strong master passphrase.

MULTI-FACTOR AUTHENTICATION (MFA)

MFA is required for remote access, privileged accounts, administrative interfaces, and any access to sensitive or regulated data. Exceptions require written approval from Information Security and documented compensating controls.

ACCOUNT LOCKOUT AND FAILED ATTEMPTS

Accounts will be locked after consecutive failed sign-in attempts and remain locked for at least minutes or until reset by authorized IT staff following identity verification procedures.

SHARED, SERVICE, AND ADMINISTRATIVE ACCOUNTS

Shared accounts are strongly discouraged. Where necessary, shared or service accounts must be documented, assigned an owner, have unique strong credentials stored in an approved vault, and require multi-factor authentication when feasible. Administrative accounts must be used only for administrative tasks and must be separated from day-to-day user accounts.

EXCEPTIONS

All exceptions to this Policy must be requested in writing, include the business justification, define compensating controls, and be approved by Information Security. Exception requests: . Exception approval period (days): .

ENFORCEMENT, AUDIT, AND INCIDENT REPORTING

Violations of this Policy may result in disciplinary action up to and including termination, and may be referred for civil or criminal prosecution when warranted. Regular audits of credential management and access logs will be performed. Suspected compromises must be reported immediately to the Information Security team at: .

RESPONSIBILITIES

Information Security is responsible for policy maintenance, approval of exceptions, and technical enforcement. IT Operations is responsible for implementation, secure configuration, and account lifecycle management. Managers are responsible for ensuring that personnel comply with this Policy. Users must follow the requirements herein and immediately report suspected compromise.

TERMS (TERM AND TERMINATION)

Start Date: . This Policy shall remain in effect until superseded or terminated by the organization. The organization may terminate or amend this Policy upon days' written notice to affected parties where applicable.

PAYMENT TERMS (ADMINISTRATIVE FEES)

If third-party password management services or implementation contractors are engaged, any fees shall be governed by separate procurement agreements. For administrative tracking only, estimated implementation cost: $ . Payment schedule: . Late fee for unpaid invoices: .

CONFIDENTIALITY

All credential information, authentication logs, and related security configurations are treated as confidential business information. Access to such information will be limited to personnel with a demonstrable business need-to-know. Disclosure of credential material to unauthorized parties is strictly prohibited and subject to disciplinary and legal action.

GOVERNING LAW

This Policy shall be governed by and construed in accordance with the laws of the State/Province: without regard to conflict of law principles.

ENTIRE AGREEMENT

This Policy constitutes the entire statement of the organization's requirements with respect to password and credential management and supersedes any prior oral or written policies on the same subject. Any amendment must be documented and approved by Information Security and appropriate executive leadership.

REVIEW AND REVISION

This Policy will be reviewed at least annually or following a significant security incident, major change in technology, or regulatory requirement. Next review date: .

ACKNOWLEDGMENT

By signing below, the parties acknowledge they have read, understand, and agree to comply with this Business Password Policy. Any willful violation may result in disciplinary action, up to and including termination of employment or contract.

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