RubinBrown (formerly KnowledgePath Consulting)


Cybersecurity and ERP Systems: A Comprehensive Guide

In today’s digital-first world, enterprise resource planning (ERP) systems have not only become the backbone of countless businesses, but these comprehensive software solutions have also drawn the unwanted attention of cyber criminals.

While ERP systems ensure seamless operations by integrating and automating critical functions, such as finance, inventory management, human resources, and customer relationships, they also store vast amounts of sensitive data, making them attractive targets for cyberattacks.

“The challenge of how to identify vulnerabilities, prioritize patches, and prevent cyberattacks targeting business-critical Enterprise Resource Planning (ERP) data and systems is keeping cybersecurity professionals up at night,” reported the Cloud Security Alliance (CSA). “It is of utmost importance for organizations to strengthen their ERP security processes to make it significantly harder for threat actors to perform that initial compromise.”

Security has always been an important topic for ERP systems, but the subject has taken on a greater urgency in the past year as bad actors have taken advantage of advances in artificial intelligence (AI).

“The urgency to fortify defenses against the weaponization of Artificial Intelligence (AI) in cyberattacks has never been greater. Adversaries can now harness AI to launch targeted cyberattacks with unprecedented precision and exploit vulnerabilities at speeds and scales unattainable by human hackers,” writes Gabriele Finta, head of cybersecurity market strategy, SAP, in Forbes in October 2023. “Adversaries can now harness AI to launch targeted cyberattacks with unprecedented precision and exploit vulnerabilities at speeds and scales unattainable by human hackers.”

Understanding the Risks: ERP Systems and Cyberattacks

ERP systems, the nerve centers of organizational data, are susceptible to a spectrum of cyber threats. Understanding these risks is crucial for building a resilient defense.

Cybercriminals employ various tactics to exploit vulnerabilities in ERP systems:

  • Malware Intrusions: Disguised as legitimate software, malware can infiltrate the ERP system and disrupt operations or steal sensitive data.

  • Phishing Attacks: Deceptive tactics to trick users into divulging confidential information such as phishing emails, crafted to appear from trusted sources. Phishing attacks try to coax users into revealing sensitive information or clicking malicious links that download malware.

  • Data Breaches: Unauthorized access leading to the compromise of sensitive data, often posing significant financial and reputational risks.

The consequences of a cyberattack on an ERP system can be devastating.

Financial losses can occur due to stolen funds, data recovery costs, and lost business opportunities.

Data breaches can expose sensitive information, leading to legal repercussions and damage to customer trust. Additionally, reputational damage can be hard to overcome, impacting customer loyalty and brand image.

Several recent incidents highlight the critical need for robust cybersecurity in ERP systems. In 2023, a major food manufacturer suffered a ransomware attack that crippled its production and distribution network, resulting in millions of dollars in losses.

Similarly, a healthcare provider experienced a data breach that exposed the personal information of millions of patients. These examples demonstrate the real-world impact of cyberattacks and underscore the importance of proactive security measures.

Securing Your ERP System

Fortifying ERP systems against cyber threats demands a strategic and multifaceted approach.

Here are essential measures to safeguard these critical systems:

  • Access Control and User Authentication:
    • Implement strong password policies and multi-factor authentication to restrict unauthorized access.
    • Establish different access levels based on user roles and responsibilities.
    • Regularly review and update user accounts and permissions.


  • Data Encryption and Backup:
    • Encrypt sensitive data at rest and in transit to protect it from unauthorized access.
    • Implement secure backup and recovery solutions to ensure data availability in the event of a cyberattack.
    • Regularly test your backup and recovery procedures to ensure their effectiveness.


  • Vulnerability Management and Patching:
    • Regularly scan your system for vulnerabilities and promptly apply security patches.
    • Prioritize patching critical vulnerabilities first to minimize the risk of exploitation.


  • Network Security and Intrusion Detection:
    • Implement firewalls and intrusion detection systems to monitor network activity and identify suspicious behavior.
    • Securely configure your network and restrict unnecessary access to sensitive data.


  • Security Awareness Training:
    • Educate employees about cyber threats and best practices for protecting sensitive information.
    • Conduct regular phishing simulations and security awareness training to test employee knowledge and identify potential vulnerabilities.


  • Security Policy and Incident Response Plan:
    • Develop a comprehensive security policy that outlines roles, responsibilities, and procedures for handling security incidents.
    • Establish a clear incident response plan that details steps to take if a cyberattack occurs.


  • Industry Standards and Regulations:
    • Familiarize yourself with industry standards such as SOC 2 and ensure your ERP system complies with relevant regulations like GDPR.
    • Compliance with these standards demonstrates your commitment to data security and can enhance customer trust.

Choosing a Secure ERP System

Selecting a secure ERP system is a pivotal decision that directly impacts the organization's cybersecurity posture.

When selecting an ERP system, prioritize security features to safeguard your data and consider the following when evaluating ERP vendors:

  • Secure Cloud Infrastructure:
    • Choose a system with a proven track record of security and reliability.
    • Look for features like dedicated security teams, regular security audits, and disaster recovery capabilities.


  • Robust Data Security and Encryption:
    • Choose a system that offers data encryption at rest and in transit.
    • Assess the overall data security architecture.
    • Ensure the system adheres to industry best practices for data security.

  • Regular Security Updates and Vulnerability Scanning:
    • Verify that the vendor provides regular security updates and vulnerability scanning to address emerging threats.
    • Choose a system with a proactive approach to security updates and patching.


  • Compliance with Industry Standards and Regulations:
    • Select a system that complies with relevant industry standards and regulations such as GDPR.
    • This demonstrates the vendor's commitment to data security and compliance.


  • Proven Track Record of Security and Reliability:
    • Choose a vendor with a strong reputation for security and a track record of protecting customer data.
    • Research the vendor's security history and customer testimonials and references.

  • Evaluating Security Posture:
    • Request a security questionnaire from potential vendors to assess their security policies and practices.
    • Conduct penetration tests to identify vulnerabilities in the system.
    • Engage in open communication with vendors about their security posture and commitment to data protection.

By carefully evaluating these criteria, organizations can make informed decisions that align with their security requirements.

Best Practices for Continuous Improvement

It’s not enough for organizations to prioritize security when choosing an ERP system and vendor, they need to maintain an ongoing commitment to security.

Continuous improvement when it comes to ERP security requires vigilance and a culture that focuses on these best practices:

  • Conduct regular security audits by independent third-party assessors to identify vulnerabilities and weaknesses in your system.

  • Implement penetration testing to simulate real-world cyberattacks and assess the resilience and effectiveness of your security measures.

  • Provide ongoing security awareness training to employees to reinforce best practices and keep them informed of emerging threats.

  • Foster collaboration between IT and business departments for effective security practices.

  • Encourage open communication and information sharing to improve overall cybersecurity preparedness.

  • Stay informed of the latest cyber threats and trends to identify potential risks and vulnerabilities.

  • Subscribe to threat intelligence feeds and participate in industry forums to stay ahead of emerging threats.

  • Regularly test your incident response plan to ensure its effectiveness in responding to cyberattacks.

  • Review and update your plan based on lessons learned from testing and actual incidents.

  • Track key security metrics, such as the number of attempted attacks and successful breaches.

  • Regularly report on your security posture to stakeholders to ensure transparency and accountability.

Incorporating these practices ensures that the organization remains adaptive and resilient in the face of emerging cyber threats.

Fostering a culture of security within your organization is crucial for long-term success.

A proactive approach to cybersecurity is vital for maintaining a competitive edge and safeguarding your business's reputation and success in the digital age. If you are not sure where to start, contact KnowledgePath today. Our dedicated team is here to help.