Why should organisations use passwords?

Organisations should use passwords to ensure that only users authorised to gain access to their network systems can. The use of passwords provides authentication to all legitimate users of the network domain. It is important to note that passwords must be strong if they are to be used at all.

1. Protection of sensitive data: Sensitive information held by the business, such as its databases, core directories, and important documents, must be protected using passwords. Safeguarding the data from cyberattacks is also necessary.
2. To gain trust: To reassure clients that their data is secure with the company, password security is necessary to gain their trust. This is also essential for maintaining one's company's standing in the marketplace.
3. Financial loss: Having a password secures your account from having to pay for resources to repair damage and to keep track of lost data.
4. Upholding norms: To function effectively, several national and international SOPs and compliances must be properly followed and adhered to.
5. Efficacy: Without password protection, cyberattacks can occur and cause damage control and migration to take longer than necessary. This lowers an organization's operational efficacy.