Which of the following statements about identity management benefits is true?

• A. It reduces costs and enables centralized auditing
• B. It increases manual processes
• C. It reduces security
• D. It has no impact

Answer: (A)

Identity management centralizes and automates how users are granted, changed, and removed from access to resources. This automation cuts manual workload—provisioning new hires, deprovisioning offboarded employees, and handling password resets—and reduces the chance for human error. At the same time, all identity events (which user accessed what, when, and what changes were made) feed into a single, auditable log, making centralized auditing straightforward and reliable for compliance. That combination—lower operating costs plus a unified audit trail—captures the practical benefits of identity management. The other statements run counter to how identity management works: manual tasks don’t increase with a proper IAM system, security isn’t diminished by adopting IAM, and IAM typically does have a real impact rather than none at all.