Risks: (1) Blast radius—compromised identity accesses all. (2) Privilege escalation—lateral movement. (3) Compliance—fails audits. (4) Accidental impact—mistakes affect more. (5) Shared roles—one bad actor. Example: s3:* on * = delete any bucket. Best: Scope to resources (arn), actions (GetObject not *), conditions (IP, MFA)....
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