Passwords protect the system against local changes. They restrict access to the Local Terminal, Setup and to the rescue shells on the virtual consoles. The administrator password is also needed to reset the system to factory defaults.
These passwords are saved in a way (salted and hashed) that prevents them from being recovered them from the local storage.
By default, no passwords are set on IGEL OS. Set at least an administrator password:
For configuration of the User Account for Remote Access, see Using Secure SSH Settings.
Find further information on the Passwords page in the IGEL OS manual.