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Passwordpolicy as atemplate.

Many password policies still require special characters and a change every 90 days. The current NIST SP 800-63B-4 of July 2025 prohibits both for authentication systems and relies on length, blocklists, and limited failed attempts; in IT-Grundschutz, the BSI advises against purely time-based changes. This template translates the requirements into policy text with placeholders, compares old and new rules with citations, and guides you through the implementation in Microsoft Entra ID.

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Password Policy: Template Based on NIST and BSI

Format
PDF, A4
Length
11 pages
Size
135 KB
Updated
Oct 25, 2026
Sources
12
Usage
Adaptation for your own use permitted; redistribute unchanged
Read as a Web Page

WHO IT IS FOR

Who This
Is for.

Policy text with placeholders, old and new rules with citations, and a checklist for Microsoft Entra ID, backed by NIST SP 800-63B-4, BSI ORP.4, and Microsoft Learn.

  • Executive management of small and medium-sized companies that want to issue a binding password policy
  • IT management and information security officers who bring existing rules up to the NIST and BSI standard
  • IT service providers that set up password rules and Microsoft Entra ID for their customers

9 SECTIONS

What Is
Inside.

Every technical statement in the document names its source. The revision date appears on every page.
  • 01

    What NIST and BSI require today

    The new basic rules at a glance and how binding the sources are for companies in Austria.

  • 02

    Old rule, new rule

    Nine common password rules and what replaces them under NIST SP 800-63B-4 and BSI ORP.4.

  • 03

    Where multifactor authentication is mandatory

    NISG 2026 for NIS2 entities and Microsoft for administrative access; the BSI recommends it (SHOULD) for administrators.

  • 04

    Template: password policy to adapt

    Model text with 15 clauses for all accounts, special accounts, and IT systems, plus the approval form to fill in.

  • 05

    Implementation in Microsoft Entra ID

    What is fixed, what you can configure, and which license you need for it.

  • 06

    Requirements for authentication systems and your own applications

    What systems check, how they limit failed attempts, and how they store passwords, according to NIST and BSI.

  • 07

    Common mistakes during the transition

    Where new password rules fail in practice and how to avoid it.

  • 08

    Outlook: passkeys instead of passwords

    Why passkeys are phishing-resistant and what Microsoft Entra ID already offers for them today.

  • 09

    Four steps to the new policy

    From taking stock through approval and technology to instruction and annual review.

EXCERPT

Old rule, new rule

Comparison with citations (NIST = SP 800-63B-4, ORP.4 = BSI IT-Grundschutz Edition 2023)
Common until nowNewCitation
At least 8 characters with uppercase and lowercase letters, a digit, and a special characterLength instead of character types: at least 15 characters, at least 8 only in combination with MFA; no other composition rulesNIST 3.1.1.2; Microsoft recommends at least 14 characters for Microsoft 365
Change every 30, 60, or 90 daysNo change after a set period; mandatory change on suspicion or evidence of compromiseNIST 3.1.1.2; ORP.4.A8, ORP.4.A23
Maximum length of 12 or 16 characters, spaces prohibitedAllow at least 64 characters, all printable characters, and spaces; check the full lengthNIST 3.1.1.2; ORP.4.A23
No check against known passwordsBlocklist of common, expected, and compromised passwords; rejection with an explanationNIST 3.1.1.2; ORP.4.A8
Pasting blocked, password managers discouragedAllow password managers and autofill, permit pastingNIST 3.1.1.2; ORP.4.A8 (review use)
Security question and password hint for resetsNo security questions, no hints visible without signing in; secure reset procedureNIST 3.1.1.2; ORP.4.A11
Unlimited sign-in attemptsLimit failed attempts: increasing delay and lockout after a defined number, at most 100NIST 3.2.2; ORP.4.A13
Password as the only protection, even for administratorsMFA, at least for administrators; offer a phishing-resistant methodORP.4.A10, ORP.4.A21; NIST 2.2.2; § 32 para. 4 lit. j NISG 2026
Passwords stored in plain text or with reversible encryptionStored salted and with a password hashing schemeNIST 3.1.1.2; ORP.4.A12, ORP.4.A23

NIS2 entities: Under annex point 11.6.2 of Implementing Regulation (EU) 2024/2690, which § 2 NISV 2026 declares applicable, authentication credentials must be changed at the outset, at predefined intervals, and on suspicion (lit. c); after a defined number of unsuccessful sign-in attempts, a reset of the authentication credentials and a lockout must be required (lit. d); inactive sessions must be terminated (lit. e); and separate credentials must be used for privileged accounts (lit. f). You set the interval yourself and justify it with the risk analysis; the annex does not specify a minimum value.

SOURCES

Supported
by Sources.

  1. NIST SP 800-63B-4: Digital Identity Guidelines, Authentication and Authenticator Management (final version, July 2025) (opens in a new tab)Abstract, Notations, sections 2.2.2, 2.3.2, 3.1.1, 3.1.1.2, 3.2.2, 3.2.5, Appendix B; accessed October 25, 2026
  2. BSI IT-Grundschutz Compendium, Edition 2023: module ORP.4 Identity and Access Management (opens in a new tab)Chapter 3 with ORP.4.A1, A8 to A14, A19, A21, A23, and A24; accessed October 25, 2026
  3. BSI: Creating secure passwords (opens in a new tab)Password check, length and complexity, password managers; accessed October 25, 2026
  4. NISG 2026, § 32 Cybersecurity risk management measures, current daily version in the RIS (opens in a new tab)§ 32 paras. 1 and 3, para. 4 lit. j, and para. 5, valid from October 1, 2026; accessed October 25, 2026
  5. NISV 2026, BGBl. II No. 290/2026, authentic promulgation in the RIS (opens in a new tab)§§ 2, 4 to 7, and 9, promulgated on October 1, 2026, accessed October 25, 2026
  6. Implementing Regulation (EU) 2024/2690, annex points 11.6 and 11.7 (authentication) (opens in a new tab)Applicable to all essential and important entities under § 2 NISV 2026
  7. Microsoft Learn: Password policy recommendations for Microsoft 365 (opens in a new tab)Introduction, password policies for administrators and users; accessed October 25, 2026
  8. Microsoft Learn: Eliminate bad passwords using Microsoft Entra Password Protection (opens in a new tab)Global and custom banned password lists, evaluation, hybrid scenarios, licenses; accessed October 25, 2026
  9. Microsoft Learn: Password policies and account restrictions in Microsoft Entra ID (opens in a new tab)Microsoft Entra password policies, expiration policies; accessed October 25, 2026
  10. Microsoft Learn: Protect user accounts from attacks with Microsoft Entra smart lockout (opens in a new tab)How it works, pass-through authentication, managing lockout values; accessed October 25, 2026
  11. Microsoft Learn: Mandatory multifactor authentication for Azure and admin portals (opens in a new tab)Enforcement phases 1 and 2, accounts, preparation, frequently asked questions; accessed October 25, 2026
  12. Microsoft Learn: Enable passkeys (FIDO2) in Microsoft Entra ID (opens in a new tab)Passkey profiles, synced passkeys, authentication strength, known issues; accessed October 25, 2026

This template must be adapted to your company, your systems, and your protection requirements and does not replace legal advice. The cited standards and vendor information in their current version are authoritative, and for entities under the NISG 2026, the statutory text in its current version. Microsoft features, names, and licenses may change.

YOUR NEXT STEP

From Paper
to Practice.

We review with you what is already implemented in your environment and put the rest into practice: as a project with EXPERTS or as ongoing operations with GRID.