A Hardware Security Module (HSM) is a physical device designed to manage and protect digital keys used for encryption and decryption. It provides a secure environment for cryptographic operations, ensuring that sensitive data remains safe from unauthorized access. HSMs are commonly used in industries that require high levels of security, such as finance and healthcare. These modules can perform various functions, including key generation, digital signing, and secure storage of cryptographic keys. By using an HSM, organizations can enhance their overall security posture and comply with regulations related to data protection, such as those set by PCI DSS or GDPR.