Explanation/Reference:
Explanation:
Identity management is the combination of business process and technology used to manage data on IT systems and applications about users. Managed data includes user objects, identity attributes, security entitlements and authentication factors.
Enterprises manage identity data about two broad kinds of users:
Insiders: including employees and contractors. They often access multiple internal systems and their

identity profiles are relatively complex.
Outsiders: including customers, partners and vendors. There are normally many more outsiders than

insiders.
One of the challenges presented by Identity management is scalability.
Enterprises manage user profile data for large numbers of people. There may be tens of thousands of insiders and hundreds of thousands of outsiders.
Any identity management system used in this environment must scale to support the data volumes and peak transaction rates produced by large user populations.
Incorrect Answers:
A: Increasing the number of points of failures is not key management challenge regarding identity management solutions. There should be no single points of failure but this would be more of a concern for the IT department than management.
B: Users not being able to "recycle" their password for different applications is not a concern for management.
C: A working scalable identity management system is more important to management than the cost. The resource requirement for identity management technologies is not that much when compared to the cost of other systems.
References:
http://hitachi-id.com/password-manager/docs/defining-enterprise-identity-management.html