Enterprises making use of various IT systems (servers, devices, applications etc.) face numerous challenges due to the proliferation of administrative passwords (also called as privileged passwords). This white paper discusses the problems associated with administrative password proliferation with special reference to the issues related to shared administrative passwords and service accounts. The ways to tackle the challenge, the importance of effective password management, the need for enterprise password management applications to prevent unauthorized access to passwords and the vital requirements that one should consider before zeroing-in on a password management solution, have been dealt with.