So, here we will discuss what is data security? it refers to the practice of protecting digital information from being accessed by unintended parties, corrupted, altered, or stolen at any point in its lifespan. Security principles revolve around availability, integrity, and confidentiality - with policies, controls, and technologies put in place to ensure data is only accessed with proper authorization at certain points and when needed - upholding these three key aspects.
Proper data security strategy implementation offers protection from insider threats such as hostile employees, accidental data release, and cyberattacks, and the principle of least privilege implementation by only providing access once requests can be verified based on regulatory compliance requirements that come into effect.
ERP Data Security
Enterprise resource planning (ERP) programs such as Microsoft Dynamics, SAP PeopleSoft, and Oracle EBS are essential in running successful businesses and processes. Their applications streamline implementation processes across HR, supply chain, and finance functions, allowing businesses to run operations at scale across multiple locations by connecting thousands of employees and third-party vendors in multiple geographical regions. An important aspect of your overall data security patches plan must include safeguarding ERP apps' stored information as well as controlling access.
ERP applications typically offer some security controls; however, these controls often lack sufficient granularity for regulatory compliances such as GDPR and CPRA that mandate internal controls at field, transaction, and master data levels, which makes implementing them nearly impossible with native ERP security vulnerabilities features.
Data security features provide businesses with access to data through Attribute-Based Access Controls (ABAC), thus solving major ERP physical security posture concerns. Furthermore, their dynamic policy-based data masking feature limits exposure while meeting regulatory compliance for sensitive field-level information such as personally identifiable information (PII). Together, these solutions enable businesses to secure sensitive data while mitigating risks and implementing zero-trust practices without impairing the operational effectiveness of an ERP ecosystem.
Why Is ERP Data Security Important?
ERP data security is often disregarded or assigned only subordinate priority by businesses regardless of economic state, but that should change now. An afterthought might be too extreme; maybe they believe their current technology is "good enough." Using outdated legacy solutions in uncharted waters puts your data at risk from fraudsters or thieves; without plans in place, you could fail in the future and risk data security audits being taken for granted by competitors; therefore, now is an opportune moment to elevate ERP data security model as a high-priority project even essential one; here are five explanations as why that needs to change:
Your ERP Data Is Already Exposed
Verizon's 2019 Data Breach Investigations Report indicates otherwise: insider threats were one of the fastest-rising trends among data breaches this year, accounting for 34% of attacks - along with user credentials such as VPN credentials being stolen and accidentally misused; additionally, it can be hard to ascertain if users are misusing sensitive information without proper security and monitoring procedures in place.
Remote Access And Data Security Should Be Synonymous
Though remote work had always existed before the COVID-19 pandemic hit, its rapid spread led to unprecedented levels of remote workforce connectivity for essential business operations, prompting many organizations to use obsolete security methods like VPNs. Consider that having remote access increases your threat surface, with larger surfaces meaning greater vulnerabilities for data breaches.
While using a VPN might make you believe your risk has been reduced, in reality, your actual level hasn't. Furthermore, insider leaks or credential theft often lead to major data breaches; such risks increase significantly with remote access environments, no matter the effort to reduce them through VPN use.
As part of granting remote access to ERP data, you must monitor numerous details concerning users, such as their origin, the data being requested by each one, what kind of device they're using, and if that device belongs to a member of staff who should have it. Cybercriminals know these systems are vulnerable and continue their attacks against them relentlessly.
Data Security Is Not As Costly As A Data Breach
IBM's Cost of a Data Breach Report estimates the global average for data breaches as $4 million; in the U.S., however, average breach costs can cost $8.2 million, which is over twice what global costs would incur.
Data breaches present more risks than simply financial ones; compliance and operations both come under threat, as do more intangible costs such as press attention or scrutiny on upper management and your company itself.
Compliance Stakes Have Never Been Higher
Compliance requirements like SOX, GDPR, and CCPA impose substantial liabilities on organizations that fail to secure ERP data properly and keep an audit trail for data access. By employing data security solutions that address insider threats while also mitigating direct breach damage and decreasing (or even eliminating altogether) fines associated with compromised customer information, organizations can increase compliance.
ERP Data Security Is A Manageable Problem
One need not find projects complex or time-consuming simply because they're essential; adding data security is one of the simpler issues to handle since, unlike cloud migration implementation projects, adding security doesn't involve too much change management. When looking for configurable solutions instead of customizing applications or systems - which would likely not only add complexity but cost as well - consider configurable rather than custom solutions, as these issues do have long-term scalable solutions available to them.
Risks To Data Security
Accidental Exposure
An organization's applications and employees need access to data in order for its operations to run efficiently, but who exactly has that access, and why can it be an ongoing source of concern? Accidental exposure occurs when employees access sensitive data without authorization due to ignorance of security procedures; improving access controls or offering employee training can both reduce this risk.
Phishing And Other Social Engineering Attacks
Social engineering attacks involve manipulating staff into providing access to sensitive data. One popular means for infiltrating and compromising a system in an organization is the use of "phishing emails." Phishing emails are designed to appear credible by imitating an official source while encouraging recipients to disclose login credentials or click links that grant attackers entry to your network.
Insider Threats
Insider threats represent an increasingly prevalent risk that many organizations find challenging to manage. Employees who become the source of security breaches through intentional or accidental means are known as insiders. There are three forms of insider threats that organizations should beware of:
- Malicious insiders who seek to damage the company for personal gain by intentionally trying to gain access to its data may pose an immense danger to its success and profitability.
- Insiders who have become compromised yet remain unaware that their credentials or devices have been taken over may unknowingly access or obtain data through them.
- Workers who inadvertently cause harm without malicious intent or carefulness are known as non-malicious insiders.
Ransomware
Ransomware is a type of malware that encrypts all the data on corporate devices in order to spread. Retrieval requires using a decryption key, which attackers often demand as payment in return. Ransomware spreads rapidly among networked devices in order to render them unusable quickly - the only effective defense against an attack from ransomware lies within using backup servers without paying ransom to its attackers.
Data Loss In The Cloud
Data loss in the cloud refers to losing control over the distribution and access of stored information stored in a cloud service provider's systems, making data vulnerable to access by unintended third parties in the absence of proper security controls or controls that monitor access levels. Moving applications or storage data onto such cloud platforms is inevitable for organizations engaging in digital transformation; however, without appropriate measures in place, it could make itself accessible to unauthorized individuals without adequate safeguards for access controls, making data vulnerable to loss.
ERP Controls
Large organizations widely utilize ERP programs such as SAP, PeopleSoft, and Oracle EBS for various business tasks involving supply chain, finance, CRM, and human resource management. ERP apps contain significant amounts of sensitive company data that is essential to their operation; compromised or malicious users could access or alter procedures to their advantage without proper permission controls in place.
Read More: Streamline Your Management Operations with These Key Advantages of Using an ERP System
Types Of Data Security Technologies
Data Masking
Data masking allows organizations to encrypt, obfuscate, scramble, or otherwise modify sensitive data in order to restrict access and exposure to it. Its primary aim is to ensure users meet all authorization requirements in order to gain entry while still permitting business needs-driven access to sensitive material. It offers functional replacement that doesn't interfere with business operations while still upholding the integrity of original files through data masking.
Access Controls And Monitoring
One of the cornerstones of data security is access control. Organizations can authorize and monitor access based on various criteria relating to roles, location, time, etc., using access controls in place. Not only is access control essential to any business, but continuously monitoring user activity is crucial so any suspicious activities can be reported for further investigation; additionally, preventive access controls help businesses limit data exposure while abiding by privacy laws.
Encryption
Security experts and compliance standards widely advocate encryption as one of the earliest and most frequently employed data security tools. Encryption involves changing data into an encoded form that requires a key in order to decipher; even in cases of theft from systems, hackers cannot gain access to sensitive information stored encrypted unless stolen from them first. Compliance standards often mandate encryption as one security measure against potential breaches of sensitive information stored in encrypted format.
Data Erasure
Massive volumes of data collected over the years are stored by most organizations, from various data types like financial or patent information to employee/customer details and employee performance data. Not all this data may always be necessary, as it becomes obsolete over time. Organizations must put policies and procedures in place for managing, protecting, deleting, or discarding this information if it becomes unnecessary - otherwise, this data could end up falling into untrustworthy hands - though they remain responsible.
Data Resiliency
Data resilience refers to a security practice focused on recovering unintended deletion, corruption, or exfiltration from business-critical data stored on servers - especially during ransomware attacks or intentional/malicious data erasure attempts. Organizations can rely on backups if business-critical files are regularly copied to them for protection in these circumstances.
ERP Data Security Challenges
Monitoring Data Access
This is one of the main challenges of ERP implementation. Monitoring user activity can be an arduous challenge for businesses with thousands of employees and software vendors logging into ERP applications, including monitoring user activity of employees who access sensitive data through roles or authorization. Users could execute high-value transactions, modify master data, or gain access based on roles/authorization. Furthermore, public WiFi, remote locations, or headquarters access could further exacerbate risks. Conventional ERPs do not keep detailed logs that shed insight into user behaviors, leading to security gaps and hindering audit trail maintenance efforts.
Data security provides a detailed understanding of who, what, and where data access takes place in ERP applications - thus solving this issue. Our Change Log Module offers detailed analyses of data access patterns and changes made to transaction and master data.
Masking Of Sensitive Data At Field Level
Employees and outside service providers use ERP applications for various business tasks. Unfortunately, standard ERP controls don't suffice in restricting access or protecting sensitive information - for instance, when accessing payroll for employees, the employee profile page will display all fields necessary for payroll, but users handling payroll don't require knowing about an employee's email address or any other personal details such as telephone number, etc.
It employs data security controls that compel full or partial data masking at field levels, protecting sensitive financial and personally identifiable data in ERP user interfaces from being disclosed without proper consent. Furthermore, click-to-view capabilities let users quickly view sensitive information by clicking directly on it or successfully completing multi factor authentication challenges.
Insider Threats
One of the costliest data security issues facing businesses today is insider threats. According to Verizon Insider Threat Report, trusted insiders who possess access to sensitive data account for 57% of breaches. Since sensitive information can often be stored and accessed through ERP applications with improper access controls or lack of insight into user behaviors, this may lead to data theft and violate security policy regulations.
It provides enterprises with an effective solution for controlling insider threats by continuously recording user activities and notifying security teams when suspicious user behavior emerges. Dynamic authorization policies offer more control than ever over ERP user access by setting parameters like geolocation, time of day, or IP address, limiting user access based on factors like geolocation.
Data Loss Prevention
The COVID epidemic heralded an age of remote work for businesses globally. Employees now access ERP applications using public WiFi or their own devices - creating security risks as this exposes sensitive data for exposure or exfiltration. Furthermore, new regulations pertaining to data monitoring and accessibility within the ERP ecosystem are tightening up monitoring procedures further.
Data security feature of ERP system selection secures ERP data by adding extra safeguards beyond what most ERP applications can offer, such as role-based access controls (RBAACs). Attribute-based access controls (ABAC) at the business process, transaction, and master data levels help protect financial information, intellectual property rights of clients, and staff personally identifiable information (PII), with ABAC also used by businesses to limit or permit access based on factors like IP address location security clearance level time range days, etc.
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Conclusion
ERP application data storage and access require a strong technological foundation that allows for the implementation of internal controls, monitoring their effectiveness over time, as well as compliance regulations that add extra burden. Selecting solutions that simplify audit compliance along with overall ERP data security solutions is critical, given this added burden of regulation compliance regulations.
Security features within an ERP data solution offer a comprehensive security platform capable of controlling user access to sensitive data while also protecting it against violations, policy violations, and limited exposure of sensitive information, as well as detecting threats while mitigating risks effectively.
