Based on the Azure Security Benchmark v3, here are three best practices for identity management:

Use a centralized identity and authentication system:

Standardize on Azure Active Directory (Azure AD) to govern your organization's identity and authentication for both cloud and on-premises resources.
This centralization simplifies management and enhances security by providing a single control point for all identity-related activities.
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Protect identity and authentication systems:

Implement strong security measures to safeguard your identity and authentication infrastructure.
This includes restricting privileged roles, enforcing multi-factor authentication (MFA) for all users, and continuously monitoring for suspicious activities.
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Manage application identities securely and automatically:

Utilize managed identities for applications instead of human accounts to access resources.
Managed identities help reduce the risk of credential exposure and support automated credential rotation, enhancing security....