Corporate Password Management: What Mistakes Should You Avoid?

The Wake-Up Call

Imagine you're running a fast-growing business. Your teams are engaged, your clients are loyal, and your operations are accelerating.

A single, simple password used across multiple platforms. That’s all it takes for a hacker to break in, encrypt your data, and block access to your tools. In just a few hours, everything comes to a halt: your operations are frozen, and your credibility starts to crumble.

This scenario is more common than you'd think. And most often, the entry point is a password that was underestimated. Many believe they’ve secured their IT systems with antivirus software, a solid firewall, and cloud backups but all that can fall apart because of one reused or exposed password.

Today, no company is too small or too low-profile to be a target. Yet many organizations still hesitate to formalize their security approach, simply because they don't know where to start.

What We See in the Field

In small and mid-sized businesses, access management is often improvised not out of negligence, but due to a lack of time, resources, or guidance. Common issues include:

• Passwords shared via email or Teams
• Lists of credentials stored in Excel files accessible to everyone
• Sticky notes on monitors with the Wi-Fi or main account password
• No password change after an employee leaves

While widespread, these practices pose real risks. A single compromised account can allow an attacker to move laterally within the system, gain more access, and cause extensive damage.

These aren’t isolated cases the numbers speak for themselves:

• 49% of breaches are caused by stolen credentials 
• 86% of successful attacks involve the use of stolen login info
• 77 % of U.S. users admit to sharing passwords in an unsafe way 

And once a door is open, it's often too late to react.

What Quebec's Law 25 Says

Beyond best practices, there’s also a legal framework. Since the implementation of Law 25 (An Act to modernize legislative provisions as regards the protection of personal information in the private sector), Quebec-based businesses are legally obligated to better protect the information they hold.

This includes:

• Mandatory appointment of a data privacy officer
• Internal documentation of security policies
• Mandatory incident notifications to the Commission d'accès à l'information (CAI)
• Implementation of tangible measures like encryption, multi-factor authentication, and stronger password policies

Under the GDPR penalties can reach up to €25 million or 4% of global revenue, depending on the severity of the breach (Article 83). Lesser violations can still result in fines of up to €10 million or 2% of revenue. This is no longer just a good practice it’s a legal obligation..

Beyond administrative penalties, jurisdictions like Quebec (Law 25) and Canada (PIPEDA) also impose criminal fines, ranging from $500 to $50,000 for executives in the event of violations potentially more if the negligence is deemed severe or intentional. Business leaders can also be held personally accountable..

The Most Common Mistakes in SMEs

Certain errors are seen time and again:

• Using an employee’s name as a password (e.g., “Sophie2025”)
• Reusing the same password across several internal tools
• Never updating passwords, even after many years
• Failing to revoke access for former employees or suppliers

The cause? Not bad intent, but a lack of resources or clarity on what exactly needs to be implemented.

What a Simple Security Strategy Should Include

You don’t need to overhaul your entire organization to improve your security practices. Here are some essential elements:

1. 1. Unique and Strong Passwords

A strong password is:

• Long (at least 12 characters)
• Complex (uppercase, lowercase, numbers, symbols)
• Unique for each platform

Avoid personal info like first names, company names, or birthdays. It’s tempting—but also very predictable.

2. A Password Manager

This simple tool can:

• Automatically generate strong passwords
• Store them securely (encrypted)
• Allow safe sharing among team members

It eliminates the need to remember 30 different passwords and reduces the risk of using weak or repeated combinations.

3. Multi-Factor Authentication (2FA)

Even with a strong password, always add a second authentication factor:

• SMS code
• Mobile app
• Physical security key

This blocks unauthorized access in case your password is stolen.

Integrate Security from Day One

One of the most strategic moments to implement good practices is when onboarding a new employee. Too often, credentials are created in a rush with a generic password that never gets changed.

From day one, you should:

• Provide a password manager
• Create time-limited access
• Train employees on company-specific risks
• Emphasize individual responsibilities

A good start avoids many issues later on.

Raise Awareness, Don’t Just Impose Rules

What if cybersecurity became second nature? It’s not just about enforcing technical rules, but about building a real digital culture. Just like locking the door or buckling your seatbelt, protecting your access should become an automatic habit.

Under the GDPR, penalties can reach up to €25 million or 4% of global revenue, depending on the severity of the breach (Article 83). Lesser violations can still result in fines of up to €10 million or 2% of revenue. This is no longer just a good practice it’s a legal obligation.

Tools alone aren’t enough. If your team doesn’t understand why they’re being asked to create longer passwords, they’ll eventually bypass the system.

We recommend a continuous approach:

• Clear, regular reminders
• Short, scheduled training sessions
• Peer discussions to share good practices
• Real-life examples of attacks (without exaggerating) to raise awareness

Go Further: Audit Your Access

A good habit is to review access rights at least once a year:

• Are the permissions still up to date?
• Are there unused accounts?
• Are critical accesses shared by multiple people?
• Are there ghost accounts still hanging around?

Doing this regularly gives you a clear view of your exposure. Many easily fixable weaknesses are often discovered during these reviews.

Simple Steps, Real Results

Strengthening password security doesn’t have to be complex or expensive. It’s about taking the time to implement simple practices, raise team awareness, and use accessible tools.

So, what can you do today, practically?

• Set up a password manager
• Enable 2FA on all sensitive accounts
• Train your employees even briefly
• Create a short, clear internal policy
• And most importantly: stay curious, alert, and adaptable.

You can’t eliminate all threats, but you can make every entry point harder to breach. Don’t wait to be the next target, the best protection starts today. Want to talk about it?

Contact us now to discuss your cybersecurity challenges and get concrete recommendations.