Security teams should treat encryption as a layered control, not a single setting. Use strong algorithms such as AES for stored data and TLS for data moving across networks. Pair encryption with disciplined key management, strict access controls, and regular audits. That combination reduces exposure if storage, endpoints, or network traffic are compromised and helps maintain compliance.
Why This Matters for Security Teams
Encryption is often treated as a checkbox, but in practice it is a control that only works when it is implemented consistently across storage, backups, APIs, application traffic, admin tooling, and third-party integrations. Security teams need to decide what must be encrypted, who can decrypt it, where keys live, and how exceptions are governed. Without that discipline, encryption can give a false sense of safety while leaving sensitive data exposed through weak key handling or plain-text handling outside the intended path.
The main risk is not the algorithm itself, but the operational gaps around it. A strong cipher does little if keys are accessible to the same system that stores the data, if certificates expire unnoticed, or if internal service traffic is left unprotected because teams assume the perimeter is trusted. Control guidance in NIST SP 800-53 Rev 5 Security and Privacy Controls remains useful because it ties encryption to broader control expectations such as access control, key management, and auditability rather than isolating it as a standalone safeguard. In practice, many security teams discover encryption weaknesses only after a recovery exercise, incident review, or compliance audit reveals where data was left unprotected.
How It Works in Practice
Effective encryption programs separate the problem into two layers: data at rest and data in transit. For data at rest, the goal is to protect files, databases, object storage, snapshots, endpoint volumes, and backups so that a stolen device or exposed storage bucket does not immediately expose content. For data in transit, the focus is on protecting communications between browsers, applications, services, administrative tools, and external partners so that traffic cannot be intercepted or altered in motion.
The implementation details matter. Teams should define where encryption is mandatory, which protocols are approved, how keys are generated and rotated, and what logging proves the control is working. A practical rollout usually includes:
- Encrypting high-risk data stores by default, then extending coverage to backups and replicas.
- Using TLS for external and internal network traffic where sensitive data is exchanged.
- Storing keys in a dedicated key management system or hardware-backed service, not alongside the protected data.
- Restricting decryption permissions to the smallest set of workloads and administrators necessary.
- Monitoring certificate lifecycles, key rotation events, and failed handshake activity.
Teams also need to think about boundary cases. Some environments require field-level encryption, tokenization, or application-layer encryption because storage-layer encryption alone does not reduce exposure inside the application stack. Encryption decisions should also be aligned to incident response, because recovered systems may need controlled re-encryption, revocation of compromised keys, and validation that backups remain usable. Where encryption is tied to identity and privileged access, strong authentication and separation of duties become part of the control, not an afterthought. These controls tend to break down in legacy environments with unsupported protocols, hard-coded credentials, or unmanaged service-to-service traffic because the encryption plan cannot be enforced end to end.
Common Variations and Edge Cases
Tighter encryption coverage often increases operational overhead, requiring organisations to balance stronger confidentiality against performance, troubleshooting complexity, and key lifecycle management. That tradeoff becomes visible when systems are distributed across cloud, on-premises, and partner environments, or when older applications cannot support modern protocol settings without redesign.
Best practice is evolving in areas such as application-level encryption, client-side encryption, and encryption for search or analytics workloads. There is no universal standard for this yet, so teams should treat these patterns as risk-based design choices rather than defaults. The key question is whether the chosen method actually limits exposure in the threat model being addressed. For example, storage encryption can be sufficient for lost hardware, but it does not protect against an attacker who already has application or database access.
Security teams also need to distinguish between regulatory pressure and real protection. Compliance may require encryption in certain contexts, but compliance alone does not prove that keys are protected, certificates are managed, or privileged users are constrained. For environments that rely heavily on service accounts, automation, or machine-to-machine traffic, encryption must be paired with identity controls so that systems can prove who is communicating and why. In identity-rich architectures, poor encryption governance often appears first as key sprawl or certificate fatigue, then later as a breach path rather than a technical misconfiguration.
Standards & Framework Alignment
This section maps relevant standards and security frameworks to the operational risks and controls described in this guidance.
OWASP Non-Human Identity Top 10 address the attack and risk surface, while NIST CSF 2.0, NIST AI RMF, NIST Zero Trust (SP 800-207) and NIST SP 800-63 set the governance and control requirements practitioners need to meet.
| Framework | Control / Reference | Relevance |
|---|---|---|
| NIST CSF 2.0 | PR.DS | Data security outcomes directly depend on protecting data at rest and in transit. |
| NIST AI RMF | AI systems using sensitive data need privacy, integrity, and access protections. | |
| NIST Zero Trust (SP 800-207) | SC-12 | Key establishment and trust boundaries matter when encrypting service-to-service traffic. |
| NIST SP 800-63 | Strong identity assurance supports access to key management and decrypt privileges. | |
| OWASP Non-Human Identity Top 10 | Machine identities often hold the certificates and keys used for encrypted traffic. |
Treat encryption as part of zero trust and pair it with authenticated, least-privilege communication paths.
Related resources from NHI Mgmt Group
- How should security teams implement data access governance across cloud and unstructured data?
- How should security teams implement threat hunting across identity, endpoint, and cloud data?
- How should security teams implement data classification across SaaS and GenAI tools?
- How should security teams implement continuous data discovery for GDPR compliance across SaaS, cloud, and AI tools?
Deepen Your Knowledge
Reviewed and updated by the NHIMG editorial team on September 1, 2026.
NHI Mgmt Group — the #1 independent authority on Non-Human Identity, IAM, and Agentic AI security. nhimg.org