Key management is the management of cryptographic keys in a cryptosystem. This includes the lifecycle management of keys, such as the generation, exchange, storage, use, crypto-shredding (destruction) and replacement of keys. It includes cryptographic protocol design, key servers, user procedures, and other relevant protocols.

Key management concerns keys at the user level, either between users or systems. This is in contrast to key scheduling, which typically refers to the internal handling of keys within the operation of a cipher.

Successful key management is critical to the security of a cryptosystem. It is the more challenging side of cryptography in a sense that it involves aspects of social engineering such as system policy, user training, organizational and departmental interactions, and coordination between all of these elements, in contrast to pure mathematical practices that can be automated.

Cryptographic systems may use different types of keys, with some systems using more than one. These may include symmetric keys or asymmetric keys. In a symmetric key algorithm the keys involved are identical for both encrypting and decrypting a message. Keys must be chosen carefully, and distributed and stored securely. Asymmetric keys, also known as public keys, in contrast are two distinct keys that are mathematically linked. They are typically used together to communicate.

Public key infrastructure (PKI), the implementation of public key cryptography, requires an organization to establish an infrastructure to create and manage public and private key pairs along with digital certificates.

Once keys are inventoried, key management typically consists of three steps: exchange, storage and use.

Prior to any secured communication, users must set up the details of the cryptography. In some instances this may require exchanging identical keys (in the case of a symmetric key system). In others it may require possessing the other party's public key. While public keys can be openly exchanged (their corresponding private key is kept secret), symmetric keys must be exchanged over a secure communication channel. Formerly, exchange of such a key was extremely troublesome, and was greatly eased by access to secure channels such as a diplomatic bag.

Clear text exchange of symmetric keys would enable any interceptor to immediately learn the key, and any encrypted data.

The advance of public key cryptography in the 1970s has made the exchange of keys less troublesome. Since the Diffie-Hellman key exchange protocol was published in 1975, it has become possible to exchange a key over an insecure communications channel, which has substantially reduced the risk of key disclosure during distribution. It is possible, using something akin to a book code, to include key indicators as clear text attached to an encrypted message.

The encryption technique used by Richard Sorge's code clerk was of this type, referring to a page in a statistical manual, though it was in fact a code. The German Army Enigma symmetric encryption key was a mixed type early in its use; the key was a combination of secretly distributed key schedules and a user chosen session key component for each message.

In more modern systems, such as OpenPGP compatible systems, a session key for a symmetric key algorithm is distributed encrypted by an asymmetric key algorithm. This approach avoids even the necessity for using a key exchange protocol like Diffie-Hellman key exchange.

However distributed, keys must be stored securely to maintain communications security. Security is a big concern and hence there are various techniques in use to do so. Likely the most common is that an encryption application manages keys for the user and depends on an access password to control use of the key. Likewise, in the case of smartphone keyless access platforms, they keep all identifying door information off mobile phones and servers and encrypt all data, where just like low-tech keys, users give codes only to those they trust.

In terms of regulation, there are few that address key storage in depth. "Some contain minimal guidance like 'don’t store keys with encrypted data' or suggest that 'keys should be kept securely.'" The notable exceptions to that are PCI DSS 3.2.1, NIST 800-53 and NIST 800–57.

For optimal security, keys may be stored in a Hardware Security Module (HSM) or protected using technologies such as Trusted Execution Environment (TEE, e.g. Intel SGX) or Multi-Party Computation (MPC). Additional alternatives include utilizing Trusted Platform Modules (TPM), virtual HSMs, aka "Poor Man's Hardware Security Modules" (pmHSM), or non-volatile Field-Programmable-Gate-Arrays (FPGA) with supporting System-on-Chip configurations. In order to verify the integrity of a key stored without compromising its actual value a KCV algorithm can be used.