A password management system and method for securing networked client terminals and mobile devices is provided. More specifically, the present invention provides a system and method for encrypting randomly generated administrator-level passwords and providing a means for decrypting the randomly generated passwords for single-use unrestricted access to a designated terminal or mobile device. When unrestricted access to the terminal or mobile device is required, the encrypted administrator-level password is decrypted using a shared symmetric key, which is generated during encryption of the administrator password, to reveal the administrator-level password for the terminal or mobile device. The administrator-level password is a single-use password, wherein upon use of the administrator-level password a new administrator-level password may be automatically generated for the corresponding terminal or mobile device.