Password security in SAP environments is crucial to safeguarding sensitive business data and preventing unauthorized access. Weak passwords can lead to security breaches, data theft, and compliance issues. Establishing strong password policies ensures robust protection. Best practices include enforcing complex passwords, setting expiration periods, enabling multi-factor authentication, and restricting reuse of old passwords. Regular audits, user education, and system monitoring further enhance security. Implementing these measures strengthens SAP security and mitigates cyber risks.