How does an ERP system keep data secure?

Keeping data secure in an ERP system is extremely important.

Because an ERP is the hub of an organisation’s critical and confidential data, the process of securing data in an ERP is therefore a vital and highly necessary one.

The data-security process in an ERP system consists of various steps and technologies, such as the following.

1. Access control

Authentication

This is having system users verify their identity — for example, with passwords, two-step verification, or biometric technology.

Authorization

Defining data-access rights according to the user’s role and duties, such as manager, employee, or executive.

2. Data encryption

Encrypting data both when stored in the system (data at rest)

and when transmitted over the network (data in transit), to prevent access to the data by bad actors.

3. Logging and monitoring

Logging various activities in the system, such as data access and data changes,

for use in retrospective auditing and in detecting abnormal behaviour.

4. Vulnerability management

Checking and updating the ERP system so it is always current,

to guard against attacks via newly discovered vulnerabilities.

Testing the system to find vulnerabilities and carrying out fixes.

5. Data backup

Backing up data regularly to guard against data loss in the event of a problem or an attack.

Testing data recovery from backups to ensure that recovery is possible in an emergency.

6. Training and awareness

Training employees on data security and on using the ERP system correctly.

7. Time-based access control

Defining data-access rights for specified time periods — for example, restricting data access to working hours only.

8. Using firewall and Intrusion Detection Systems (IDS) technology

Using a firewall to guard against attacks from outside.

Using an Intrusion Detection System (IDS) to monitor for and alert on abnormal behaviour.

Securing data in an ERP system is a coordination of technology, management, and giving users the right information so they are aware of using the ERP system safely.