How to Conduct a Data Security Audit for Your ERP System?
Not too long ago, enterprise resource planning (ERP) systems were expensive tools that were only available to governments and major conglomerates. Today, affordable platforms like SAP Business One have changed the game, giving smaller organizations next-level data accuracy and automation capabilities that open up new avenues to growth.
That said, small-to-medium enterprises (SMEs) that integrate modern ERPs still face serious challenges. Not only must they reimagine the role of data in their day-to-day operations, but they should also be prepared to safeguard their ERPs against malicious actors and other threats.
ERPs have direct access to a lot of sensitive information, ranging from financial records to customers’ and employees’ personal information, making them vulnerable to data breach incidents. Critically, they are often reliant on internet connections to function, giving hackers a way into these systems. Unfortunately, though most SMEs do recognize the importance of cybersecurity, not all of them take credible steps to protect their own systems.
Outside of developing a healthy attitude towards cybersecurity, the next best thing businesses can do is to conduct regular audits to find potential vulnerabilities before they can be exploited. Audits also help preserve the functionality and reliability of ERP systems, ultimately building trust in them and the organization.
There are many approaches to conducting an internal audit of an ERP system. However, most tend to follow the steps below:
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Define Audit Objectives
Before you start an audit, you must first define the parameters for its success. Conducting an audit without clear objectives can result in ever-increasing scope creep, wasting already limited resources for little benefit.
In all cases, set a few primary goals for the audit, such as assessing compliance, identifying vulnerabilities, or evaluating access controls. Keeping a tight focus ensures a speedy yet still effective audit process, laying the groundwork for regular future inspections.
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Assess and Configure Access Controls
As a rule, users must only have access to the information and controls they need to do their jobs. Excessive permissions and the lack of access control maintenance are common causes of security breaches, more than many decision-makers realize. For that reason, your audit sessions must ensure that data is restricted appropriately and the roles of authorized personnel are clearly defined.
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Analyze System Logs
Examine your ERP’s system logs to monitor user activities, keeping an eye out for unusual or unauthorized actions. Regular log analysis could help in identifying potential security incidents and support forensic investigations after a breach is detected.
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Check Your ERP for Vulnerabilities
Some top-rated ERPs also allow administrators to perform automated scans to detect potential security weaknesses within the ERP system. However, these are not always enough for a credible audit. You must also look into potential vulnerabilities such as outdated software or misconfigurations to prevent potential exploitation.
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Review Security Policies and Procedures
While audits are invaluable in keeping your system safe, they’re also great opportunities for ensuring a great experience for your ERP’s users. Examine existing security policies to ensure they are up-to-date and are not unnecessarily restrictive. In particular, testing must be done to help uncover issues in data access, user authentication, and incident response.
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Perform Simulated Attacks on the ERP
If there is a credible risk of cyberattacks, your audits must also include simulations to test the ERP system’s technological and human defenses. Performing regular simulated attacks should help uncover exploitable vulnerabilities and give you a realistic picture of your ERP’s resilience.
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Review Data Backup and Recovery Procedures
Not all threats to data are a result of malicious activity. Natural disasters and other unexpected events can sometimes result in a loss of access or data, causing a slowdown in business operations. Your audits should, therefore, ensure that data backup processes are in place and functioning correctly.
Aside from setting your data backup schedule, you should also start building a disaster recovery playbook, based on what you learn from your audits. This document should assign areas of responsibility to key ERP stakeholders so that everyone knows their role in mitigating downtime during a crisis.
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Ensure Compliance with External Regulations
ERP systems often need to interface with different external financial systems and databases, each of which has technical and legal requirements. Given that these standards constantly shift over time, periodic audits are a good time to ensure that your ERP’s compliance is fully up-to-date.
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Document Findings and Implement Improvements
Lastly, your audits must include comprehensive reporting, highlighting areas of concern and recommended actions. Work with your ERP’s key stakeholders to develop and execute a plan that concretely fixes identified issues without negatively impacting the functionality or user experience of your system.
Good ERP Maintenance Is an Investment in Your Brand
In recent years, there has been a sharp rise in cyberattacks, with many malicious attempts targeting businesses’ ERP systems. Fortunately, the risks can be controlled by allocating enough resources for regular data security audits. Prioritizing regular audits will put your business ahead of evolving threats and prevent the most common kinds of security breaches, maintaining the integrity of your ERP system. Given that not every business is taking cybersecurity as seriously as they should, proactively safeguarding your ERP also improves your business’s credibility, not just to customers but to potential investors as well.