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PAM Foundations

Privileged access management protects the accounts, credentials and sessions that can change everything else. This guide covers what counts as privileged, why attackers go after it, the capabilities a PAM programme provides, and how tiering keeps the most powerful credentials away from risky devices.

Level Beginner to intermediateReading time about 20 minutesBest before Labs 03, 07 and 09
What counts as privileged

Privilege is anything that can change the rules for everyone else

A privileged identity can create or change other identities, read data it does not own, change security settings, or turn off the controls that would detect misuse. It is not only named administrators. Most organisations find far more privileged credentials than they expected when they first run a discovery exercise.

Human admins

Global Administrators, domain admins, cloud subscription owners, DBAs.

Service accounts

Run applications, backups and scheduled tasks, often with broad rights and old passwords.

Emergency accounts

Break-glass accounts kept for when everything else fails.

Secrets and keys

API keys, client secrets, certificates, SSH keys and connection strings.

Workload identities

Service principals and managed identities with application permissions.

Local admin rights

Administrator access on laptops and servers, a common foothold for attackers.

SaaS admins

Admin roles inside HR, finance, CRM and collaboration platforms.

Pipelines

CI/CD service connections that can deploy to production.

Why attackers want it

Most serious breaches run through privileged credentials

Attackers rarely start with admin rights. They start with an ordinary user, then hunt for credentials that let them climb. Each step on the path below is a place where a PAM control can stop them.

STAGE 1Initial accessPhished user on a laptop STAGE 2Credential theftCached hashes, Kerberoasting STAGE 3EscalationLocal admin, then server admin STAGE 4Lateral movementReuse creds across servers STAGE 5Domain or tenant controlDCSync, Global Admin BREAK IT WITHPhishing-resistant MFANo admin rights oneveryday accounts BREAK IT WITHVaulted, rotatedpasswords; gMSA forservice accounts BREAK IT WITHEndpoint privilegemanagement, uniquelocal admin (LAPS) BREAK IT WITHTiering, brokered andrecorded sessionsfrom a PAW BREAK IT WITHJust-in-time roles,tier-zero hardening,detection (Lab 10)
A typical privilege escalation path. Every stage has a matching control; a PAM programme layers them so one failure does not hand over the estate.
The capability map

Eight capabilities make up a PAM programme

No organisation switches all of these on at once. They are listed roughly in the order most programmes adopt them.

01Discover

Find every privileged account, secret and group membership, including the forgotten ones.

02Vault

Store credentials in an encrypted vault so people check them out instead of knowing them.

03Rotate

Change passwords and keys automatically, on a schedule and after every use.

04Broker sessions

Connect admins to targets through a proxy so the credential never reaches their device.

05Record and audit

Capture what happened in each privileged session for investigation and evidence.

06Just-in-time access

Grant privilege only when requested and approved, for a fixed window. See Lab 07.

07Endpoint privilege

Remove local admin from users and elevate specific applications instead.

08Secrets for workloads

Give applications and pipelines short-lived secrets from a secrets manager, not config files.

Where Microsoft-native tools fit

CapabilityMicrosoft-native optionDedicated PAM platforms add
Just-in-time rolesMicrosoft Entra Privileged Identity Management for Entra roles, Azure roles and groupsJIT for non-Microsoft systems, Linux, databases and network devices
Local admin passwordsWindows LAPS, backed up to Entra ID or Active DirectoryDiscovery and rotation across mixed estates
Application secretsAzure Key Vault and managed identitiesSecrets brokering for many clouds and on-premises apps
Session brokeringAzure Bastion for RDP and SSH to Azure virtual machinesFull session recording, keystroke logging and approval workflows
Threat detectionDefender for Identity and Entra ID Protection (Lab 10)Behaviour analytics on privileged sessions

Examples of dedicated PAM and secrets platforms include CyberArk, Delinea, BeyondTrust and HashiCorp Vault. They are named here as examples of the category, not as recommendations.

A privileged session, end to end

The administrator never sees the password

In a mature setup the admin authenticates strongly, requests access with a reason, and is connected through a proxy that injects the credential. When the session ends, the password is rotated, so even a recorded or stolen value is already useless.

Admin on a PAWseparate admin account Strong MFAphishing-resistant Request andapprovalreason, ticket, window Vaultcredential checked out Session proxy to targetcredential injected, never shownsession recorded Check-in, auto-rotate Every step is logged with who, what, when and why.
A brokered privileged session. Rotation after check-in means the credential has a lifetime of one session.
Tiering and the enterprise access model

Keep the most powerful credentials on the cleanest devices

The classic Active Directory tier model split assets into Tier 0 (identity systems), Tier 1 (servers and applications) and Tier 2 (user devices). Microsoft now describes the same idea as the enterprise access model, with a control plane, a management plane and a data and workload plane. The rule is the same in both: a credential from a higher tier must never be used on, or exposed to, a device in a lower tier.

CONTROL PLANE (TIER 0) Domain controllers, Entra ID Global Admins, AD CS, AD FS, Entra Connect, PAM platform Compromise here means compromise of everything below it MANAGEMENT PLANE (TIER 1) Server admins, Azure subscription owners, application and database administrators DATA AND WORKLOAD PLANE Business applications, data stores, APIs and the workloads that run them USER AND APP ACCESS (TIER 2) Employees, partners and customers on everyday devices THE RULE Control flows downwards only Never sign in to a lower tier with a higher one
Planes of the enterprise access model with their classic tier equivalents. Lab 09 treats the sync server and its account as control plane assets.
The clean source principle

A device is only as trustworthy as the least trusted thing that controls it. A Global Administrator who signs in from a laptop used for email and browsing has effectively made that laptop part of the control plane.

Account hygiene rules

Seven rules that remove most privileged risk

  • Separate admin accountsAdmins use a dedicated privileged account, with no mailbox and no web browsing, alongside their everyday one.
  • Cloud-only adminsPrivileged Entra roles go to cloud-only accounts, not accounts synchronised from Active Directory, so an on-premises compromise cannot reach them.
  • Privileged access workstationsTier 0 and Tier 1 work happens from hardened, dedicated devices.
  • No standing privilegeMake admins eligible and activate just in time (Lab 07).
  • Managed service identitiesPrefer group managed service accounts and managed identities, which rotate their own secrets, over accounts with static passwords.
  • No interactive logon for servicesService accounts should be denied interactive and remote desktop sign-in.
  • Two monitored break-glass accountsCloud-only, excluded from Conditional Access, protected with a phishing-resistant method, stored securely, and alerting on every use (Labs 03 and 04).
Terms you will hear

PAM, PIM, PASM and PEDM

These are often used interchangeably. They overlap, but they are not the same thing.

PAMPrivileged Access Management

The overall discipline and the umbrella for the capabilities on this page.

PIMPrivileged Identity Management

Managing which identities hold privileged roles, and when. In Microsoft's world it is the Entra feature for just-in-time role activation.

PASMPrivileged Account and Session Management

Vaulting shared privileged credentials and brokering and recording the sessions that use them.

PEDMPrivilege Elevation and Delegation Management

Granting specific elevated rights on endpoints and servers instead of full admin.

The IDAM and PIM Foundations guide goes deeper on just-in-time roles in Microsoft Entra.

A maturity roadmap

Start small, then layer on

Stage 1

Know and protect

  • Inventory privileged roles and accounts
  • Phishing-resistant MFA for admins
  • Separate, cloud-only admin accounts
  • Two break-glass accounts
Stage 2

Control

  • Just-in-time activation for all admin roles
  • Vault and rotate shared and service credentials
  • Windows LAPS everywhere
  • Quarterly access reviews of privileged roles
Stage 3

Isolate and detect

  • Tiering and privileged access workstations
  • Brokered, recorded sessions
  • Secrets management for workloads
  • Alerting on privileged activity

Key takeaways

Privilege is wider than admin accounts. Discover it before you try to control it.
Every stage of an attack path has a matching control. Layer them.
Higher-tier credentials never touch lower-tier devices.