Why Risk-Based Conditional Access Is the Future of IAM

As digital threats evolve and workforce dynamics change, static access controls fall short. This blog post explores how risk-based conditional access policies can provide stronger, context-aware security while improving user experience.

In brief:

• Static access controls can’t keep up with modern threats. You need risk-based conditional access to keep up with sophisticated attacks.
• Risk-based access adapts to real-time context. Smart identity and access management (IAM) systems evaluate user location, device trust, login behavior, and timing to make informed access decisions using artificial intelligence (AI) and contextual signals.
• Risk-based controls reduce friction for low-risk scenarios while tightening security where it matters.
• Dynamic protection stops attacks in real time.
• You need basic security building blocks before implementing risk-based controls.

As cybersecurity rapidly evolves, identity and access management (IAM) must keep pace with these changes. Eighty-six percent of data breaches involve stolen security credentials, making access one of the most significant vulnerabilities in an organization’s infrastructure. The global IAM market is expected to reach $61.74 billion by 2032, underscoring the importance of investing in IAM to prevent identity-related compromises.

Identity is the new security edge, and traditional static controls fall short. They’re too binary and lack real-time context awareness, leading to excessive access, delayed response, and zero visibility for audit trails.

Instead, risk-based conditional access policies create stronger, context-aware security while improving user experience. In this article, we’ll discuss the benefits of conditional access, implementation considerations, and how to start your journey toward adaptive IAM.

Why Traditional IAM Falls Short

IAM itself isn’t broken, but it’s not flexible enough for today’s sophisticated threats. Environments are more dynamic than ever. Remote work, bring your own device (BYOD) policies, third-party access, and multicloud infrastructure have drastically expanded the attack surface.

For example, the average employee works remotely at least one day a week, roughly 28 percent of the work week. The average office worker uses three devices per day, including desktops, laptops, personal phones, or a work smartphone.

Most organizations are built on a tech infrastructure comprising dozens of software-as-a-service (SaaS) applications, third-party vendors, and hybrid cloud environments. Each of these access points introduces a new level of risk, and all of this is constantly in flux.

Here’s a brief snapshot of why traditional IAM falls short:

• Constant access to sensitive data, applications, and files from potentially unsecured endpoint devices
• Device sprawl with employees accessing critical systems
• Shadow information technology (IT) and inadequate onboarding and offboarding policies
• Cloud complexities across hybrid, private, and public clouds

It’s clear that traditional static IAM doesn’t keep pace with today’s dynamic environments, so let’s discuss the alternative: risk-based conditional access.

What Is Risk-Based Conditional Access?

IAM’s role in cybersecurity is paramount, and risk-based conditional access is a smarter approach that adapts to real-time context. Instead of static, binary access, risk-based identity and access management controls use high-value signals like user location, device type, login behavior, and time of day to assess risk level in real time.

Then, IAM technology — powered by a mix of artificial intelligence (AI), predefined policies, and contextual signals — makes an informed decision on whether to grant access.

Risk-based conditional access addresses the challenges of employees frequently changing devices, switching between multiple applications throughout the day, and requesting access to sensitive data from third-party vendors.

Now that we’re clear on the definition of risk-based conditional access, let’s discuss the benefits to your organization.

The Benefits of Going Risk-Based

The benefits of going risk-based are multifaceted. Organizations experience stronger security without frustrating users, which often leads to the exact workarounds that break security policies. You also get more dynamic protection, streamlined access, and improved compliance.

Let’s explore all these benefits in more detail.

Stronger Security Without Frustrating Users

The most effective security policies are the ones that people actually use. If security is too restrictive, users often find workarounds. Sharing passwords, overpermissioning accounts, and creating shared logins circumvent clunky, outdated security policies that don’t keep up with today’s pace of work.

For example, 69 percent of Americans say they’ve used someone else’s login before, and 80 percent don’t see anything wrong with it. Most people don’t see these simple mistakes as security violations. However, risk-based policies are fast and secure without negatively impacting productivity.

Dynamic Protection Against Credential Stuffing, Phishing, and Lateral Movement

Cyberattacks are quieter, more sophisticated, and more damaging these days. Criminals use the latest AI and automation technologies to test thousands of passwords, patiently wait for an employee to use an unsecured public network, or stealthily move throughout an organization’s infrastructure unnoticed.

Risk-based conditional access quickly identifies where the user is coming from in terms of IP location, what the user is doing once inside the system, and whether access requests are normal or unusual.

Dynamic IAM tools use user risk scoring, device trust evaluation, location and network context, and real-time enforcement to block access or limit session permissions — effectively halting lateral movement in its tracks.

Streamlined Access for Low-Risk Users, Reducing Friction

Not every employee or system needs the same level of access. For low-risk users, risk-based conditional access adjusts by reducing friction and streamlining access. For high-risk users and scenarios, it tightens control by requiring multiple levels of authentication, limiting sessions, or denying privilege entirely.

Improved Compliance by Aligning With Zero Trust and Least Privilege Models

Especially with highly regulated industries, traditional IAM doesn’t meet compliance requirements for zero trust, least privilege, role-based access controls, and even audit logging. For example, HIPAA requires centralized, immutable audit trails with forensic-level details on who accesses what, when, where and why.

It’s clear that conditional risk access provides significant benefits, so let’s imagine what these controls look like in real-world simulations.

How Conditional Risk-Based Access Controls Work in Practice

Moving toward a smarter identity security means constantly auditing and assessing who has access to what and from where. This includes policies such as:

• Just-in-time permissions
• Privileged access governance
• Automated onboarding, offboarding, and user permissioning
• Automated threat detection, endpoint security, and user behavior analytics

These policies aren’t just valuable in theory. In real-world scenarios and industries, they’re essential to managing users and risk at scale, whether it’s a merger and acquisition, leadership transition, or a period of rapid growth and employee turnover.

For example, automotive dealers face an exceptionally high employee churn of roughly 46 percent. This often leads to inactive accounts, shadow IT, and mismanagement of user permissions across employees. Especially when left to human error, accounts will likely go inactive and become invisible, creating a perfect vulnerability for a cybercriminal to exploit.

A leading automobile company used Centric Consulting’s IAM consulting to tackle this exact problem. Our team identified gaps, created standardized processes, and focused on long-term security growth and improvement.

Modern IAM tools measure signals such as suspicious login locations, a new device without prior history, and unusual times of access to create an appropriate response. Common system responses include requiring multifactor authentication, denying access, escalating authentication, and logging these suspicious behaviors for review.

Let’s look at two real-life scenarios.

First, a new smartphone attempts to log in to financial records from New York City in the middle of the night, trying multiple times to log in unsuccessfully. Conditional risk-based access controls might escalate this privilege authentication to an IT admin for verification.

In another example, a third-party contractor repeatedly accesses sensitive financial systems on the weekend from an unverified IP address. Risk-based access controls would immediately flag the behavior, end the session, and notify security.

Getting Started With Risk-Based Access Controls

To get started with risk-based access controls, you need a strong identity foundation as a prerequisite. Basic security protocols such as single sign-on, multifactor authentication, and IAM governance are the building blocks for more sophisticated tools that process behavioral signals.

Next, choose the right identity platform, such as Microsoft Entra ID (formerly Azure Active Directory), Okta, or Ping Identity. Vetting these IAM systems for scalability, price, and functionality can be overwhelming, but working with an objective third-party expert like Centric Consulting can help you identify the best platform for your specific use case.

Then, launch a pilot program with high-risk systems or users first. Define policies that limit restrictions based on location, hours, and access to sensitive data. Monitor how these policies perform, make adjustments, and eventually scale to broader user groups throughout your organization.

It’s not always easy to migrate IAM systems and encourage your workforce to adopt a more modern approach, which may initially feel more restrictive. Map out a clear, phased migration plan and host short, engaging training sessions. Share real-world examples to gain employee buy-in and use tools that are as user-friendly as possible, especially for nontechnical users.

Work With a Partner to Create Risk-Based Conditional Access

Traditional IAM isn’t pointless, but it must evolve to meet the demands of modern-day security. Static, one-dimensional access controls are no longer effective in combating insider threats, credential stuffing, ransomware, or misconfigured third-party integrations.

Real-time visibility, unified identity governance, risk-based authentication, and tools like least privilege and just-in-time privilege help create an intelligent, secure identity perimeter. Risk-aware IAM is how modern organizations meet evolving threats with confidence head-on.

To get started, ensure your organization has the basic security building blocks in place. Then, choose the right tool that fits your organization’s needs, budget and tech stack.

The best access decisions are made with full-picture context. Our Cybersecurity experts help migrate organizations to more sophisticated security infrastructures. Contact our team today to discuss a migration and implementation plan. Let’s Talk