Investment in identification and access management is set to increase in the coming years as organisations tackle compliance and privacy obligations.

A study carried out by Forrester Research on behalf of UK firm BT’s business continuity and governance practice found that organisations increasingly view ID and access management as critical to improving security and compliance. According to more than 40 per cent of respondents, ID management budgets are set to rise in the coming three years.

Moreover, the study revealed that organisations are increasingly turning to two-factor authentication for employee log-on. One third of respondents said they plan to introduce two-factor authentication – which involves an additional layer of authentication in addition to the traditional username, pin and password system –within 12 months.

In Europe, two-factor authentication is commonplace in retail banking, but less so internally. However, while the trend appears to be changing, Australia is viewed as well behind Europe in this area. Commercial banking clients in Australia are being offered two-factor authentication by most of the major banks, but the situation differs for retail customers.

“These results demonstrate just how seriously companies are taking identity and access management,” said Ray Stanton, global head of BT’s business continuity, security and governance practice. “As threats to information security escalate both from inside and outside the organisation, coupled with an increase in the number of regulations that companies have to comply with, many are realising the role that identity and access management can play in helping organisations address these issues. It is vital that companies look at their priorities, and make sure the right people are able to make the decisions that affect them.”