ERP Security: An Essential Guide for 2023

As businesses increasingly rely on technology to manage their operations, the importance of robust ERP security measures cannot be overstated. One area where security is especially crucial is Enterprise Resource Planning (ERP) systems. These complex systems, which are the backbone of many organizations, hold vast amounts of sensitive data and are often interconnected with numerous other applications. So, what does it take to ensure the security of ERP systems and safeguard your organization’s most valuable assets? In this blog post, we’ll delve into the world of ERP data security, explore its unique challenges, and discuss best practices and solutions to keep your ERP system secure and your business running smoothly.

Short Summary

  • ERP security is essential to protect data, avoid financial & reputational damage, and remain compliant with regulations.

  • Implementing best practices such as multifactor authentication, password policies & employee education is key for optimal ERP system security.

  • Leveraging ERP solutions and integrating with SIEM platforms provide comprehensive monitoring & targeted threat intelligence for enhanced cybersecurity.

The Importance of ERP Security

erp, enterprise, resource

ERP security is vital to the success of any organization. Inadequate security measures can result in data breaches and non-compliance with regulations, leading to significant financial, operational, and security risks and reputational consequences.

ERP security encompasses various aspects, such as secure server configuration, security logging enablement, in-system communication security protocols, data security, and user and authorization management. Ensuring system compliance and proper patch management for cloud ERP software can guarantee compliance with frequently evolving regulations and help avert data breaches and compliance violations.

Enterprise Resource Planning Systems

ERP systems power vital business applications and contain the confidential data necessary for operations, making them essential for organizations of all sizes. These systems offer a streamlined way to manage a business’s day-to-day operations. They can help with payroll, treasury, inventory management, manufacturing, financial planning, sales, logistics, and billing.

Due to their extensive authorization objects, system settings, and customization parameters, ERP systems are inherently complex and malleable. They store a wealth of sensitive data, including financial results, manufacturing formulas, pricing, intellectual property, and personally identifiable information (PII) from employees, customers, and suppliers.

Risks Associated with Inadequate ERP Security

The complexity and interconnected nature of modern ERP systems make them attractive targets for malicious actors. Weak links in the system can create unnecessary security risks, leading to a plethora of potential negative consequences, such as breaches of sensitive data, penalties, and legal repercussions.

Failing to address these risks and maintain proper security measures can have far-reaching operational, security implications, financial, and reputational effects for an organization.

Common ERP Security Challenges

security, protection, antivirus

ERP systems include process and workflow, master data and data warehouse, an underlying computational infrastructure, and a large storage network. They also share data with numerous IT applications within and outside the organization, making it challenging for many organizations to maintain visibility into these shared applications and understand the activity within their ERP system.

ERP security is complex due to the increased difficulty in maintaining it, given the large user base and potential vulnerabilities in the system. Conventional tools such as firewalls and vulnerability scanners may not provide adequate security for many ERP systems and applications, as they can only detect vulnerabilities in the underlying operating system and not in the custom code or application layer.

On-Premises vs. Cloud ERP Security

The security risks and optimal approaches between on-premises and cloud ERP solution implementations differ significantly. While cloud ERP implementations result in a shift in focus regarding ERP security issues and solutions, both on-premises and cloud ERP systems require strong security measures to protect against cyber threats.

To ensure the highest security for cloud ERP deployments, we recommend implementing physical security measures for data centers, continuity, and backup practices to protect against ransomware attacks, encryption of data both in transit and at rest, machine learning algorithms to detect inbound threats, and identity access management with multifactor authentication (MFA).

On the other hand, on-premises ERP deployments face challenges such as poor governance in terms of security and data access, as well as access management issues often resulting from unintentional or malicious employee activity.

ERP Security Best Practices

cyber security, technology, network

To ensure optimal security of ERP systems, it is crucial to implement best practices such as multifactor authentication, password policies, and employee education cybersecurity training.

Regular software updates and patch management are essential to keep systems up-to-date and protected against emerging threats.

Implementing Multifactor Authentication

Multifactor authentication (MFA) is an essential security measure for ERP systems, requiring users to provide two or more forms of identification to access a system or application, making it more challenging for unauthorized users to gain access. Multi-factor authentication is an important security measure for large organizations. Yet, only 38% of them use this technology.

For optimal security, using strong passwords, enabling two-factor authentication, and regularly monitoring user access when implementing MFA is recommended.

Password Policies and Employee Education

data, security, keyboard

Educating users in ERP security practices is essential, as it involves them in the security decision-making process and fosters a sense of inclusion rather than making them feel like outsiders who could potentially make mistakes. Working with a professional to conduct a risk audit of operations, collaborating with team leaders to develop tailored training plans, and implementing automated schedules for each department are recommended for ERP security training.

Adhering to safe and appropriate password practices is crucial to preventing internal security and external threats caused by inadequate security knowledge within an organization. Preventing a superuser’s compromise can be achieved through educating employees, implementing two-step verification, and regularly performing software and security updates.

Regular Software Updates and Patch Management

Maintaining regular software updates is essential, as it helps prevent serious security vulnerabilities and issues, enhances compatibility and program features, prolongs the life of the device, and keeps the system secure from threats. Timely patch management is vital to reducing the risk of critical vulnerabilities and safeguarding the business’s most valuable assets.

Failure to install software updates can lead to malware infiltration and unauthorized remote access, further emphasizing the importance of this security measure.

Monitoring and Incident Response

monitor, binary, binary system

System monitoring and incident response plans are necessary to identify and respond to potential threats, ensuring a swift and effective reaction to security events. Outsourcing system monitoring can be a good option for organizations lacking experienced ERP security personnel, as the vendor manages intricate security functions such as 24/7 monitoring and disaster recovery in the cloud.

Organizations can benefit from the scalability and cost savings of cloud-based system monitoring, as well as the vendor’s expertise in managing security functions. This can help organizations ensure their ERP systems are secure.

System Monitoring and Outsourcing Options

System monitoring is the continuous monitoring and observation of an IT infrastructure by an IT manager, encompassing the functioning and behavior of computer systems, such as CPU, server memory, routers, switches, bandwidth, and applications, as well as the performance and accessibility of virtual network devices.

Cloud vendors may provide certain monitoring services or offer them as an additional option, offering an alternative for organizations that prefer to outsource their system monitoring needs.

Developing an Incident Response Plan

An incident response plan is a written document outlining an organization’s procedures, steps, and responsibilities for its incident response program, designed to help identify, eliminate, and recover from cybersecurity incidents. The plan typically includes several stages: preparation, detection and analysis, containment, eradication, full recovery, and post-incident analysis and learning.

Starting with a base incident response template and making ongoing improvements to the document, processes, and tools is a recommended method for constructing an effective incident response plan. Implementing the plan involves forming a team of incident responders, constructing a communication plan for the security team, devising a timeline for responding to incidents, and creating a process for documenting and analyzing incidents.

Leveraging ERP Security Solutions

password, keyword, codeword

ERP security solutions can provide monitoring of system settings, patch/authorization management, and RFC communication to enhance the security of ERP systems. Incorporating ERP security monitoring into a centralized SIEM can benefit cybersecurity, IT operations, and system compliance considerably.

Targeted threat intelligence can provide comprehensive data regarding tactics, techniques, and procedures employed by malicious actors for preventive protection and timely notifications regarding novel ransomware campaigns.

Integration with SIEM Platforms

A SIEM platform is a software solution designed to aggregate and analyze activity from multiple sources across an organization’s IT infrastructure, providing a comprehensive view of its information security. Integrating an ERP environment with SIEM offers near real-time monitoring of ERP events and information and ready-to-use controls, reports, and more to automate ERP compliance and maintenance monitoring.

To integrate on-premises ERP systems with SIEM, the SIEM platform must be configured to collect data from the ERP system, either by setting up an agent on the ERP system or by utilizing an API. The collected data must then be analyzed and correlated with other data sources to detect potential threats, and the SIEM platform must be configured to alert security teams in case of suspicious activity.

Cloud ERP Security Features

Cloud ERP offers a range of security features, such as multifactor authentication, built-in security measures, end-to-end cloud data security, firewall testing, and regular security updates to ensure optimal protection. Multifactor authentication is a security measure that requires users to provide two or more pieces of evidence to authenticate their identity, making it more challenging for unauthorized users to gain access.

Integrated security measures include encryption, access control, and data masking, providing additional protection for sensitive data. End-to-end cloud data security ensures data is protected from unauthorized access while in transit and at rest.

Firewall testing evaluates the efficacy of a firewall in preventing unauthorized access to a cloud provider or network, ensuring the ongoing security of the ERP system. Regular security updates help keep software up-to-date with the latest security patches, further enhancing the security of cloud ERP systems.


In conclusion, ERP security is essential to any organization’s overall cybersecurity strategy. Understanding the unique challenges presented by ERP systems and adopting best practices to protect sensitive data and maintain compliance with regulations is crucial. Implementing multifactor authentication, password policies, employee education, regular software updates, and patch management are key to ensuring the security of ERP systems. Additionally, leveraging ERP security solutions like SIEM platforms and cloud ERP features can help strengthen security and reduce the attack surface.

The importance of robust ERP security measures cannot be overstated as the world becomes more interconnected and reliant on technology. By following the guidelines and best practices discussed in this blog post, organizations can minimize risks, safeguard their most valuable data assets, and maintain a secure and efficient ERP system, ultimately ensuring the continued success of their business operations.

Frequently Asked Questions

What are the elements of ERP security?

Ensuring ERP security is essential for the safety of any business. The elements of ERP security include infrastructure security, network security, outdated software,, operating system security, and database security.

Together, these four elements form a comprehensive security approach that can help protect data and systems from malicious attacks.

How do I keep my ERP system secure?

To keep an ERP system secure, it is essential to stay up-to-date with security updates, regulate the use of employee devices, employ specialist help, segregate duties, and regularly train and monitor users.

Additionally, keeping regular backups and following password best practices can ensure a secure ERP system.

What are the three common types of ERP?

The three common types of ERP are on-premises, cloud-based, and hybrid. Companies must choose an ERP system that best suits their needs and operations to improve their productivity.

Choosing the right ERP system is essential for businesses to maximize their efficiency and streamline their business processes further. It is important to consider the system’s cost, scalability, and features.

How does an ERP provide data security?

ERP systems ensure data security by employing various measures such as authentication mechanisms, encryption, access control, monitoring, and audit capabilities. This ensures that data remains secure throughout its life cycle, allowing organizations to trust that their sensitive information is safe.

What does ERP stand for in security?

ERP stands for Enterprise Resource Planning, a system used to manage resources across different business divisions in a secure manner. This security system provides robust protection from malicious actors looking to disrupt the business environment by infiltrating or damaging the ERP systems. The goal is to protect data, reduce access and improve the overall security posture of the business.