How to create a strong business password policy  

11/07/25

We get it – talking about passwords isn’t exactly thrilling. But in a world where cyber attacks are getting more sophisticated by the day, your password is still your first line of defence.

Weak passwords are still one of the biggest security risks facing businesses today. From reused logins to easily guessed phrases like Password123, poor password habits open the door to cybercriminals, and it only takes one slip-up to put your entire organisation at risk. 

Why Password Policies Matter 

Passwords are often the first line of defence between your business and a cyberattack. Yet weak, reused, or shared passwords are still one of the most common ways hackers gain access to systems. 

Without a clear password policy in place, people tend to take shortcuts, using the same password across platforms, choosing simple or guessable words, or writing logins down on sticky notes. These habits might seem harmless, but they create easy entry points for cyber criminals. 

What Makes a Good Password Policy 

A good password policy isn’t just about making rules, it’s about making smart security easy for everyone to follow. That means striking the right balance between strong protection and practical everyday use.  

If the policy is too strict, staff will find workarounds, and if it’s too loose, you leave your systems vulnerable. The key is to create clear, realistic guidelines that fit your business and help your team build better habits. 

Steps to Build Your Policy 

1. Understand your risks
Start by looking at how your business uses passwords. You should be asking questions like ‘what systems are in place?’, ‘who has access to what?’, ‘are there any weak spots (e.g. shared logins, remote workers)?’  

Understanding your setup will help you build a policy that fits your needs. 

2. Set clear, realistic rules 
Your policy should outline what a strong password looks like, for example: 

Avoid overcomplicating the rules; overly complex policies often lead to people writing passwords down or finding ways around them. 

3. Include multi-factor authentication (MFA) 
Where possible, make MFA mandatory, especially for email, remote access, and sensitive data. It adds an extra layer of protection, even if a password is compromised. 

4. Encourage (or provide) a password manager 
People are much more likely to follow your policy if it’s easy. Password managers help staff create and store strong, unique passwords without the stress of remembering them all. 

At Resolve, we use a password manager called Keeper, which generates strong, unique passwords for each system we use and makes them easily accessible when needed, without compromising security. It makes passwords a breeze; we wouldn’t go back to traditional methods! 

How to Get Staff to Actually Follow It 

Getting staff to follow your password policy is key to keeping your business secure. Start by clearly explaining why strong passwords matter and how everyone’s actions protect the company. Use simple language and make the policy easy to find, so people aren’t confused or overwhelmed. 

You could even organise some staff training to demonstrate why having strong passwords are vital to having good cyber security. Browse our KnowBe4 cyber security training for employees here. 

A strong password policy is one of the simplest yet most effective ways to protect your business from cyber threats. It sets clear expectations, reduces risk, and helps everyone play their part in keeping company data safe.  

In conclusion....

By building a policy that’s practical, easy to follow, and well-communicated, you’ll be in a much stronger position to stay secure, without making life harder for your team. Watch our video on bad password habits for more tips and tricks on how to create a strong password. 

Need help building a cyber-safe workplace? Download our password cheat sheet below.  

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