Low-hanging fruit for hackers? Abandoned accounts and accumulated permissions from former employees that were never cleaned up. Permission sprawl and identity chaos pose a growing risk, and with stricter audits (ISO 27001, DORA, NIS2) on the horizon, a solution is essential.
We explain what identity lifecycle management is, why it is essential for large organizations under high compliance pressure, and how to implement it practically. We focus on environments with 1250+ users working with both Microsoft cloud and on-premises systems. We also discuss the result: control over all user and machine identities from onboarding to offboarding. In short, you will know what it delivers for your organization and why you need to act now.
What is identity lifecycle management?
Identity Lifecycle Management (ILM) is the structured management of digital identities (accounts) throughout their entire lifecycle within an organization. This covers all phases of an identity, from creation upon hiring to changes during role transitions and removal upon departure. The goal is to ensure that the right people (and systems) have the right access at the right time, and only for as long as necessary. As such, Identity Lifecycle Management (ILM) is the foundation of Identity Governance.
Importantly, ILM is not just about user accounts, but also machine identities (such as service accounts, API keys, and certificates). Modern standards like ISO 27001:2022 require that the full lifecycle of identities be managed in a broad sense, for both humans and non-humans. This means that a server account or script user ID must be uniquely registered, authorized, and eventually cleaned up just like an employee account. Identity lifecycle management therefore extends to all entities that have access to systems in your IT environment.
Why is Identity Lifecycle Management important in 2025?
The need for ILM has never been higher. First, many large organizations struggle with permission sprawl: over time, users accumulate more rights than strictly necessary, also known as privilege creep. Without lifecycle management, orphaned accounts (left behind by former employees) and redundant access rights emerge. This significantly increases the risk of abuse. The Verizon Data Breach Investigations Report 2025 showed that 22% of all security breaches began with compromised credentials and that a staggering 88% of web application attacks involved stolen credentials. A malicious actor who finds an old account or excessive rights has hit the jackpot.
In addition, compliance and audit pressure have increased significantly. New legislation like the European NIS2 directive mandates stricter sector-wide measures for access and identity management. In the financial sector, the Digital Operational Resilience Act (DORA) requires financial institutions to manage user rights in real-time and conduct regular access reviews to prevent privilege creep. The Dutch NCSC emphasizes in their basic principles among other things: “Manage access: give employees access only to data and services necessary to do their jobs.”. In other words, least privilege must be demonstrably guaranteed. This is only possible with strict identity lifecycle management.
At the same time, the costs and consequences of identity incidents are rising. According to RSA’s ID IQ Report 2026, 69% of organizations have experienced an identity-related security incident in the past three years, a significant increase from the previous year.
The identity lifecycle management phases (Joiner–Mover–Leaver)
Identity lifecycle management is often divided into three main phases, also known as the Joiner-Mover-Leaver (JML) model. These phases describe the lifecycle of a user identity within the organization:
- Joiner – when a new employee joins or an external party comes on board. A digital identity (account) must be created for this person and provided with the correct baseline of access rights (birth rights). For example: a new account in Microsoft Entra ID (Azure AD) with standard rights for email, HR systems, and any role-based access for the position. Ideally, this happens automatically as soon as HR registers a new hire, so the new user can start working (securely) on day 1.
- Mover – when an existing user changes roles, departments, or locations within the organization. This requires adjusting their access rights: rights that are no longer needed must be revoked, and new rights for the new role must be assigned. For example: an employee moves from Sales to Finance; access to Sales systems must be revoked and access to Finance applications granted. A good JML process implements this in a timely manner so the user is not left with too many or too few rights. Automatic detection of such changes (e.g., via HR or AD group changes) and associated workflows saves a lot of manual work. Human error is the biggest risk.
- Leaver – when a user leaves the organization or no longer requires access. This is the crucial offboarding: all access rights must be terminated by the end date, and accounts must be deactivated or deleted. If necessary, deleted accounts (orphaned accounts) must be archived for a later audit or investigation. An effective leaver process ensures that an old account does not accidentally remain active. Think of the immediate revocation of network access, VPN, SaaS accounts, and physical access cards on the day of departure.
Together, these phases form the user identity lifecycle management cycle. By having a standardized process for every joiner, mover, and leaver, you maintain control. Moreover, you create a logical audit trail: you can demonstrate when an account was created, changed, and closed, and based on whose authorization. This JML model applies not only to staff but also to external partners/guests who receive temporary access.
Automated identity lifecycle management – automation as the key
In small organizations, identity management can still be handled with manual work and checklists. But in medium and large organizations, automation is indispensable to keep identities correct at scale. Automated identity lifecycle management means that as many steps as possible in the joiner-mover-leaver process are automated according to predefined workflows and policies. This has several advantages:
- Consistency & speed: When someone starts or changes roles, accounts and rights are immediately created or adjusted correctly based on policy, without waiting times or human error.
- No forgotten offboardings: Automation prevents accounts from lingering after departure. As soon as HR enters a termination, the IAM system can automatically lock all linked accounts and prepare them for deletion.
- Less permission sprawl: By predefining birthright access packages and roles (RBAC/ABAC) and enforcing SoD policies, users automatically receive only the minimum necessary rights (least privilege).
- Audit-ready reports: Automated ILM records everything: who received or lost access and when, and based on which request or event. This provides a complete audit trail of every “identity mutation”.
In short, automated identity lifecycle management makes identity management more efficient, secure, and auditable. However, this obviously doesn't work with an Excel sheet and a few half-baked API connections. You need dedicated tools and software for this.
Identity lifecycle management tools & solutions
Technology is an enabler for ILM. There are various identity lifecycle management tools and solutions on the market, ranging from built-in platform features to full-fledged stand-alone Identity Governance & Administration (IGA) suites. Here, we discuss two categories that are often relevant for Microsoft-oriented organizations: Microsoft Entra ID Governance and full-scale IGA solutions (such as RSA Governance & Lifecycle). Both can serve as an identity lifecycle management solution, but there are significant differences in scope and capabilities.
Microsoft Entra ID Governance
Microsoft Entra ID Governance is Microsoft's built-in solution for identity governance within the Entra (formerly Azure AD) platform. It offers policy-based and largely automated solutions to ensure that the right people have the right access to the right resources, and only for as long as necessary. Key features include Lifecycle Workflows (JML workflow automation), Access Reviews (periodic reassessment of access rights), Entitlement Management (access packages and self-service requests), and Privileged Identity Management (PIM) for administrator accounts.
Full-scale IGA solution (e.g., RSA Governance & Lifecycle)
For organizations that go beyond just Microsoft and want full control over all identities in hybrid environments, a full-scale Identity Governance & Administration (IGA) solution is recommended. One example is RSA Governance & Lifecycle, a leading platform that provides comprehensive governance, provisioning, and compliance functionality both on-premises and in the cloud. While Entra ID Governance focuses on Azure AD, RSA G&L can act as an overarching layer across all your systems and applications. From Microsoft to other platforms, this is especially valuable if you are dealing with legacy provisioning, complex SoD requirements, and strict audit demands.
Our RSA expert explains when and why an IGA solution comes in handy:
User vs machine identity lifecycle management
Identity management has long focused on people, but machine identity lifecycle management is just as important. Machine identities, such as application accounts, service accounts, API tokens, RPA accounts, IoT identities, and certificates, also have a lifecycle: creation, usage, modification, and deletion.
In practice, machine accounts are often forgotten. They don't have an HR exit, persist after migrations, and thus become orphaned credentials with high privileges. Attackers love to exploit this because machine accounts are monitored less frequently and often have broad permissions. Identity lifecycle management must therefore encompass both human and non-human identities.
Getting started with Identity Lifecycle Management
Curious about how your organization can take identity lifecycle management to the next level? As a security-first MSP and RSA Gold Partner, Aumatics is here to help. Schedule a 30–45 minute introductory call with our identity specialists now.
