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The Security Enhanced Directory Manager features features enhanced security and control on user management. 
Once you have configured SEDM you will gain access to these features : 

• • Password policy
  • Account Timeout & Lockout
  • Account Recovery via email
  • End user have option to enable MFA, if SEDM configured to enable such MFA plugin
    
    
• SEDM acts as middle layer before talking to Directory Manager
  • Defaults to referring to Joget users
  • Can configure to also talk to LDAP / Sync LDAP / other DM (Directory Manager) plugins and many more.
    
    

Once SEDM is configured, stronger password encryption for local accounts will take over.
Be careful when disabling SEDM plugin, as this will cause all local passwords to be invalid

Simply go to System Settings -> Directory Manager Settings to enable and configure.

Once the plugin is enabled, users' password would be stored using a new encryption method. Disabling the plugin would cause all the users not to be able to login anymore as the default encryption method is effectively changed.

If you decide to stop using the plugin, you will need to replace all the affected users' password in dir_user table with a new password based on md5 hash.