Five Reasons Why ERP Data Security Qualifies As an Essential IT Project

 Putting on hold major IT projects (such as a cloud ERP migration) during these uncertain times indeed makes sense. Such projects might seem non-essential at this point in time, but what is 'essential' is often more a question of opinion than real importance.

A perfect example of this is the protection of ERP data. As COVID-19 struck, several companies started scoping for enterprise security solutions such as a VPN that allows remote access. But only in the context of establishing a point of authentication-not securing data.

When do you consider the large quantities of data exposure that have arisen as a significant risk vector? This actually is a direct outcome of remote access. At this point, ERP data security becomes essential. 

Data Security: Essential But Ignored

ERP data security frequently gets tossed into the "non-essential" project pile, with businesses perceiving it as an afterthought. Such thinking would expose your data to hacking, fraud, and other types of harm. That is why it is a perfect time now to make ERP data security a high priority project. Here are five reasons for this.

1: Your ERP Data Has Been Exposed 

In addition to the fact that user credentials (including VPN passwords) are regularly compromised – insider threats are one of the fastest rising trends in data breaches, accounting for, as per the 2019 Data Breach Investigations Report by Verizon, 34 percent of attacks in 2019. Moreover, many insider violations arise simply through the accidental misuse of data through insiders. Without proper protocols for data protection and surveillance, it is impossible to know if users use their privilege to access confidential information for legitimate or malicious purposes.

2: Data Protection and Remote Access Should Be Synonymous

An unprecedented level of remote work in the wake of the COVID-19 pandemic has left many businesses dependent on traditional (but outdated) security technologies, such as a VPN. Remote access means an expanded threat surface that exposes more data. A VPN can leave you feeling your threat surface shrunk, but you haven't actually shrunk your risk level. The most damaging breaches of data today occur when passwords are compromised, and data is leaked/exposed by insiders. In an atmosphere of remote access, credential/insider threats increase drastically while a VPN does nothing to mitigate.

If you allow remote access to your ERP data, you need to track various data points, like where a user comes from? What data is it they are trying to access? What device do they use? Is that computer being used by the right person? Cybercriminals know that these networks are vulnerable, and consequently, attacks are escalating.

3: Data Security Is Not As Costly As a Data Breach 

As per an IBM report titled 'Cost of a Data Breach,' the average estimated cost of a data breach is $4 million. In the U.S., the estimated cost of a breach is $8.2 million – more than twice the estimated average worldwide.

The risks associated with a data breach extend far beyond financial ones. They are both operational and compliance-related. Also, there are the expenses that are hard to measure, including adverse publicity and criticism for the company and senior management.

4: High Compliance Stakes 

Compliance regulations such as SOX, GDPR, CCPA, and others require organizations to retain and monitor data access information and impose a significant obligation when businesses fail to take reasonable action to protect ERP data. Fortunately, companies can improve enforcement by incorporating data protection tools that respond to insider threats, mitigate direct harm caused by a breach, and eliminate penalties resulting from consumer data being compromised.

5: ERP Data Security Is a Manageable Challenge 

An important project is not necessarily difficult or burdensome. This is, in reality, one of the more manageable problems to solve, as incorporating data protection does not require much change management – unlike a project for cloud migration. The trick is to not look for customizing the applications but to look for configurable solutions. Customizations are not a fast fix - they are not flexible and bring more pressure down the line on support.

Data Protection Is a Must

Any project that helps reduce business and security risks by improving the ability to authenticate users, manage data access, and track & respond to potential threats is essential. And if that project will shield you from fines, fraud, and theft due to a data breach, then it's a must for all businesses.