What functionality does the Sync Groups offer in IdentityNow?

The functionality of Sync Groups in IdentityNow specifically facilitates the synchronization of passwords across multiple direct connect sources. This means that when a password is changed in one source, it can simultaneously be updated across other sources that are part of the same Sync Group. This capability is critical for maintaining consistency and security within an organization's identity management framework, as it helps ensure that users have access to the same credentials across different applications and systems without having to manage separate passwords for each one.

This synchronization not only enhances user experience by simplifying access management but also reduces security risks associated with users having to remember multiple passwords, which can lead to weak security practices, such as reusing passwords across different platforms. Digital environments often have diverse applications functioning under various systems; hence, having a tool like Sync Groups promotes a unified approach to identity and access management.

In contrast, the other options do not accurately describe the Sync Groups functionality. Independent password management for each source implies a lack of synchronization, which is not the case. Generating new user identities automatically falls under a different aspect of identity lifecycle management, and denying password changes without managerial approval refers to policy enforcement rather than synchronization capabilities.