In this article, you will learn:
- What to pay special attention to when using an ERP system
- How to protect data within your company
- Why organizational culture is essential for data protection
- How to conduct audits to effectively increase data security
Many companies use ERP systems every day, but it is important to remember that integrating all processes into a single platform, while helpful, can pose a risk to data security. How can you protect yourself against failures and threats? Main data security threats in ERP systems
Data security in ERP systems is important regardless of whether you are
replacing a system with a new one or optimizing one already in use. Data protection in ERP is a universal issue (although some threats may be industry-specific) and will benefit both the manufacturing sector and a seaside hotel using this type of system for
room reservations. However, to effectively ensure ERP cybersecurity, you must be aware of the variety of lurking threats. One of the most dangerous (and therefore widely recognized) are external attacks in the form of hacker intrusions, e.g., for the purpose of data theft. It is easy to imagine that a ransomware attack resulting in data encryption and a ransom demand could be troublesome for a company
managing a transport fleet. Equally dangerous are internal attacks – this refers to extreme cases such as industrial sabotage, but also (and perhaps even more so) to simple oversights with tragic consequences. According to data from consulting firms
ODO24 and
iSecure, data breaches most often occur due to human error in the form of weak passwords, lack of software updates, sending emails to the wrong address, or losing paper documents.
Protecting personal data and confidential information is the duty of every company, not only because of GDPR, but primarily due to basic business ethics. It is essential for ensuring operational continuity. It is not worth downplaying this matter, as repairing the consequences of potential breaches is often more expensive and demanding than regular maintenance of security measures. Data security in ERP depends largely on the awareness of system users. A lack of knowledge about threats or unfamiliarity with methods for creating strong passwords increases the risk of attacks. For this reason, it is worth investing in systematic employee training and managing access – while some data may be accessible to everyone, the principle of least privilege should be applied to the most confidential information (though it can be applied to all data and users). Data should also be protected via software. You should not only install antivirus software on company devices (with an emphasis on anti-malware and anti-phishing protections) but also monitor user activity using SIEM (Security Information and Event Management) applications. Hardware will also be helpful – this refers to both server security (e.g., a combination of heavy doors and magnetic cards can work wonders) and physical keys protecting the most important data.
Security procedures and best practices
Virtual and physical security measures are only one element of data protection in ERP systems. Beyond these, you must also address cultural issues – this means creating an organizational culture that places great emphasis on system security. One of the best practices in this case is to develop a detailed security policy that includes all the most important standards and procedures regarding data protection. In addition to standards and processes, it is worth keeping software updated, because according to data from the Ponemon Institute,
57% of data breaches could have been avoided if the attacked equipment had up-to-date software. It is also worth implementing data encryption methods, such as the Advanced Encryption Standard or the Rivest-Shamir-Adleman algorithm – regardless of the method chosen, it is good practice to encrypt all types of data, both at rest and in transit. Another frequently used security procedure in ERP data protection is an incident management plan. This is a document that defines an exact action plan in the event of security breaches, and its development shortens the response time to attacks and service restoration. In addition, you should regularly (e.g., once a week) create data backups. It is also good to store them in a secure (preferably disconnected from the network) location.
Security audit and risk management
Security audits and risk management are required elements of every data security management strategy in ERP systems. However, it is not enough to conduct them regularly – you also need to know how to do it. The most cost-effective solution in the long run is to hire an internal audit specialist, but a solution of similar effectiveness is to entrust this task to auditing firms. Applied security measures should be evaluated according to their compliance with internal security policies, but it is equally important to compare them with industry regulations and ISO standards. Everything should be audited – from system configurations and access permissions to password management and event logs. A security audit should conclude with the preparation of a report containing results, identified threats, and recommendations for improvements. The latter should be implemented as quickly as possible, as delaying security repairs can lead to serious problems and financial losses. Implementing audit recommendations is not the end of work on data protection in ERP systems. It is good to regularly analyze potential risks, develop response scenarios for various problems, and develop the awareness and skills of system users – the latter, in particular, allows for effective protection of software against external attacks and internal breaches.
