Enterprise resource planning(ERP) systems contain essential digital data for businesses of all sizes. This data may include customer information, inventory levels, production plans, and accounting data. The ERP system is the operational cornerstone of a company, and many businesses would cease to function without it. Unfortunately, cyberattacks targeting ERP systems have risen to unprecedented levels for the 21st century. While the largest companies may have dedicated Internet technology (IT) departments, most businesses must devise advanced strategies to secure their ERP databases. A look at some of the best practices for ERP data security can help you establish a firm policy to shield your company from data breaches and digital attacks.
Identify Vulnerabilities in ERP Infrastructure
The first step in implementing ERP best practices is to establish a clear picture of your internal infrastructure. Have a third-party organization conduct a thorough audit of your system to identify vulnerabilities within your system. Elements to review include on-boarding processes, master data, wireless connections, cloud storage networks, and integration points with other applications. In addition, you should also review structural and physical changes to your business databases. These physical factors can range from the age of your computer hardware to your records management policy.
By the end of the third-party review, your company should be able to answer the following questions:
- Would a cybersecurity attack bring down the entire ERP system?
- Could a breach cause minimal impact, such as requiring a software patch with no data exposure, or could it have a devastating impact, such as regulatory fines and lost revenue?
Once your company can answer these pertinent security questions, you will have a clean slate to approach database access, workstation design, and data protection.
Enforce Stronger Password Policies
It is important to enforce password complexity requirements to protect user credentials. No longer can companies rely on simple one-word passwords for each account. To strengthen the security of sensitive information, important password management strategies include the following:
- Create passwords that are at least 10+ characters long
- Combine upper and lowercase letters, numbers, and special characters
- Avoid memorable keyword paths
- Use unique password for each business application or account
- Do not base passwords on personal information
Companies can also require users to update passwords regularly for additional security against data breaches. Some businesses have also introduced software programs that help randomly generate strong passwords and monitor for duplicate passwords or unusual activity.
Implement Multi-Factor Authentication
Companies should consider implementing multi-factor authentication at all ERP entry points. Also known as two-step verification, this type of authorization uses a unique code or token to complete each login attempt. While multi-factor authentication may sound like an extra step on paper, many employees already use this method to access banking and even social media. Even if an unauthorized party obtains access to a password, this form of verification provides an additional layer of protection. Businesses can also monitor unusual authentication requests to identify potential attacks before they can negatively impact the company.
Create and Institute an Incident-Response Plan
Even with the best security measures in place, companies should create a rapid incident-response plan for protection against cyberattacks long before they occur. ERP system upgrades should automate reports on database activity throughout the company. In the event of a cyberattack or breach, the system can use these automated reports to analyze the issue so that experts can then make repairs. Incident-response plans and reports may include the following:
- Types of incidents that require formal action, such as malware attacks, email phishing, failed encryption, or stolen laptops
- Detection and containment procedures such as team-member notification or temporary downtime to repair the problem
- Recommended recovery processes such as software removal, password resetting, or firewall installation
- When and how to notify affected individuals as required by contract or law
Monitor Threat Intelligence and Software Updates
Create a policy to monitor threat intelligence and implement updates regularly. Many companies sign up for automatic upgrades from software vendors or use a quarterly review for vulnerability and patch management. Regular software upgrades can help shield your applications from malware infections and unauthorized remote access. Furthermore, outsourcing your IT services to a reliable provider can ensure that your systems are consistently monitored and updated, reducing the risk of security breaches and keeping your company’s data safe.
Consider Cybersecurity Awareness Training
Although ERP systems form the operational core of business data, untrained employees can unwittingly place these systems at risk. For example, an employee who unknowingly downloads a fake invoice could potentially compromise a business network. To prevent these risks, consider implementing mandatory security training for each team member. With the constantly changing landscape of cybersecurity, even IT professionals can benefit from regular training sessions or workshops in the field.
Conclusion
An ERP system houses the mission-critical data of your company. Instead of leaving data security to chance, it is important to implement proper protocol well in advance of potential attacks. By instituting the best practices, you can help ensure that your company operates smoothly in the digital age.
