14 Ways To Protect Your ERP System Against Potential Risks

 

If you consider the numbers released by Statistics Canada for the year 2023, the reality of cybercrime might come across as deeply shocking. As per their report, roughly 13% of Canadian businesses lodged a complaint against cyber security issues at their local police stations.

 

That’s 1 in every 8 businesses. However, that is not the only alarming fact in the report. It also states that businesses of all scales were impacted. 16% of large businesses lodged a complaint while the numbers stood at 15% for medium-sized and 12% for small-scale businesses.

 

What’s the reason behind these numbers? Though most of the crimes were ransomware attacks, many also had the intent of stealing personal or financial information. With the increased reliance of businesses on digital tools, it’s become crucial for them to undertake strict cybersecurity measures.

 

If you are in the manufacturing industry or are a distributor, this includes safeguarding your ERP (Enterprise Resource Planning) system as it contains sensitive data and is closely integrated with both internal as well as external third-party systems.

 

As a leading custom software company in Canada, we have the intel you need to protect your ERP system against risks and threats. Here are 14 ways to do just that:

 

1. Learn About The Usual Suspects

 

Cyberattacks on your ERP system can take on different shapes and forms. For example, DDoS or ‘distributed denial of service’ is the most common type of attack as far as ERP systems are concerned.  Cybercriminals use a public-facing endpoint to render a network resource unavailable to its core users.

 

Phishing is another type of cyberattack in which criminals send scammy emails to your business posing as your ERP vendor. These emails generally contain the promise of false rewards, using them as bait to get access to sensitive data such as your company’s financial records or banking details.

 

The third type of security attack you need to be aware of is pharming. This involves re-directing your website’s traffic to a fake site that mimics yours so they can steal user information when your customers log in.

 

2. Carry Out A Risk Assessment Exercise

 

Not only is it crucial to identify vulnerabilities in your existing ERP system, but it is also important to assess the likelihood of threats as well as the impact they could have on your business.

 

You can do this by analyzing the flow of data through your ERP system to detect any potential vulnerabilities. Moreover, you should also review all access privileges to ensure that each privilege aligns with a certain responsibility and is not out of order.

 

Evaluating third-party applications connected to your ERP system can help you identify security gaps so you can take effective measures to bridge them.

 

3. Enforce Strict Access Controls

 

Safeguarding your ERP system involves implementing robust access controls as unauthorized access is generally the culprit behind activities such as frauds and breaches, among others. You can prevent this by regularly reviewing access rights and revoking unnecessary privileges.

 

Apart from that, you can implement a multi-factor authentication process, thus stopping unauthorized access in its tracks. As a custom ERP software provider, we would also recommend implementing role-based access control (RBAC).

 

With RBAC, you can assign access and permissions based on user roles. This ensures that employees can access only the data that is relevant to the tasks assigned to them, thus preventing accidental leaks or security breaches.

 

4. Conduct Regular Updates And Patches

 

Using outdated software is a weakness that cyber criminals love to exploit. Outdated ERP systems can be highly vulnerable. Hence, it is important to install vendor updates as soon as they are released. Moreover, it is crucial to monitor your software for any vulnerabilities so you can swiftly fix them.

 

Just as we recommend to all our clients, we would suggest verifying any new updates in a sandbox environment before deploying them so you can be sure they are safe and ready for a system-wide installation.

 

5. Encrypt All Your Data

 

Data encryption is a critical step in safeguarding sensitive information from the prying hands of cyber criminals. You should opt for a custom ERP system that has enhanced data encryption. However, if that is not an option, there are certain security measures you can undertake.

 

For example, you can opt for Transport Layer Security to protect your data while it's in transmission over a secure network. You can also implement ERP database encryption to keep your company information safe. Furthermore, you can bring into effect a key management system that obstructs unauthorized decryption attempts.

 

6. Conduct Periodic Security Audits

 

Regular security audits are the key to identifying security gaps as well as quashing any vulnerabilities before they can be taken advantage of. When conducting periodic audits, developers carry out cyberattack simulations to test the defenses of your ERP system.

 

Conduct compliance checks too and be sure to check your system logs for any unusual activities, including unauthorized attempts to access data.

 

7. Teach ERP Security To Employees

 

You have trained your employees on how to use custom ERP systems. Now it’s time to teach them ERP security best practices so you can minimize human error and consequent security breaches. Regular training and awareness programs such as phishing awareness can help your employees promptly report phishing attempts so they can be dealt with effectively.

 

Encouraging the use of strong, unique passwords that are regularly changed is a part of good password hygiene, which can keep threats at bay. Offering role-specific training so your employees learn how to use the ERP system without accidentally causing security threats should also help.

 

8. Implement IDPS

 

IDPS, or Intrusion Detection and Prevention Systems, are useful in identifying as well as obstructing malicious attacks on your ERP system in real-time. Integrating IDPS into your custom ERP software has other benefits too.

 

For example, it can help you analyze both incoming as well as outgoing traffic so you can promptly address any unusual activities. You can also configure your IDPS to automatically block suspicious IP addresses as well as get real-time alerts for potential security threats.

 

9. Backup Data Frequently

 

Cyberattacks can often result in data loss - a catastrophe you can prevent by backing up your data regularly. Other reasons that can lead to data loss include human error and system failure. That said, automated backups can help you keep your data up-to-date with minimal effort.

 

You can “off-shore” your data to a secure location to prevent theft and loss. Ensure you regularly test the backup restoration progress to check if the data stored is functional and ready for use.

 

10. Keep A Close Watch On Third-Party Access

 

Though integration with third-party applications is unavoidable, such integrations carry the potential of additional vulnerabilities as far as your ERP system is concerned. You can mitigate associated risks by conducting a thorough evaluation of your vendor’s security practices. Be sure to review any updates they make to this as well.

 

Also, be sure to place restrictions on how much of your ERP system third-party vendors can access. Keep sensitive sections off-limits. Regular audits of third-party activities along with periodic reviews of their access status are sound ways to ensure they don’t expose your system to any malicious attacks.

 

11. Have A Disaster Recovery Plan In Place

 

Having a recovery plan is the best way to minimize ERP data loss and downtime in case of a security breach. A comprehensive recovery plan is made up of certain elements such as an incident response team whose primary job is to handle security incidents.

 

Defining Recovery Point Objectives and Recovery Time Objectives can speed up the recovery process. Conducting regular drills can further increase your team’s preparedness to handle such emergency situations.

 

12. Use The Latest Technology To Your Advantage

 

From AI (artificial intelligence) to blockchain, new technologies carry with them security advantages that can help protect your ERP system against common threats. For example, AI can help you detect anomalies in your ERP system, which could indicate a cybercrime attempt.

 

Furthermore, blockchain technology can help you secure the data transactions your organization makes. Behavioral analytics, like AI, can come in handy in detecting unusual activities when it comes to user behavior. This is a fast and safe way to be alerted of any threats.

 

13. Ensure Regulation Compliance

 

As a leading custom software company in Canada, we take regulation compliance very seriously when designing custom software for you. That said, staying up-to-date with compliance regulations can add to the security of your ERP system.

 

Adhering to the regulations laid down in GDPR, or General Data Protection Regulation, can help you safeguard the data of your customers, thus ensuring greater transparency. Strictly sticking to industry-specific standards can also help you protect sensitive client information.

 

14. Establish A Culture Of Security

 

Lastly, creating a strong culture of security and data privacy in your organization can enhance the efficacy of the protective measures you have in place for your ERP system. Encouraging open communication so your employees report security issues as and when they happen can help you save valuable time.

 

Moreover, employee accountability can discourage behavior that can potentially expose your ERP system to external threats. Finally, continuous training and updates are good reminders to ensuring only the highest security standards are maintained throughout your company.

 

Conclusion

 

Keeping your ERP system safe, secure and threat-free isn’t a one-time thing. It requires constant vigilance and planning. While following the above steps is a sure-fire way of achieving your data security goals, so is investing in high-quality custom ERP software as the first step.

 

Vestra Inet has the required expertise and experience to create seamless and secure ERP systems for you that offer a wide range of features - from quotation modules to inventory management, CRM and more. Contact us today to get unique ERP software that’s safe and tailor-made for your business.