The Top 7 ERP Security Tips Every Executive Should Know

Enterprise Resource Planning (ERP) systems sit at the core of modern business operations. They manage financials, supply chains, HR data, customer and vendor information and operational workflows, all in one centralized platform. That centralization creates efficiency.

It also creates risk.

A single ERP security failure can expose sensitive data, disrupt operations and trigger regulatory penalties, as well as result in financial losses and reputational damage. For executives, ERP security isn’t only an IT problem – it’s a vital aspect of safeguarding your business continuity. It should be governed at the same level as financial controls and risk management.

Here are essential ERP security tips every leadership team should prioritize to protect productivity, revenue and reputation without hindering operational efficiency.

Read: 8 Tips for Getting the Most Out of Your ERP System

1. Enforce Strong Access Controls

One of the most common ERP vulnerabilities is excessive user access to sensitive data. When employees have permissions beyond their job responsibilities, the risk of data exposure, intentional or accidental, increases dramatically.

Implement role-based access controls (RBAC) aligned with job functions. Employees should only have authorized access to the data and functions necessary for their jobs. This minimizes insider threats and human error.

2. Keep ERP Systems Patched and Updated

Outdated ERP systems are a hacker’s dream. ERP vendors regularly release patches and updates to address newly discovered vulnerabilities. Create and adhere to a strict schedule for applying vendor-provided security patches and updates immediately. Delaying updates creates known security gaps that attackers actively exploit. If you struggle to remember updates, implement automatic updates.

3. Secure Integrations and Third-Party Connections

Modern ERP platforms rarely operate in isolation. They integrate with other business applications and external systems, including CRM systems, payroll providers, supply chain platforms and customer-facing applications. Your ERP system doesn’t operate in a vacuum; its security is only as strong as the systems it connects to, and each integration expands the potential attack surface.

Rigorously vet any third-party application or service that integrates with your ERP, ensuring it is compatible with your ERP software. Ensure their security standards meet your own and limit the access they are granted using the Policy of Least Privilege (PoLP).

4. Back Up Data and Test Disaster Recovery Plans (DRPs)

Even with the best security measures, a cyber incident is still possible. ERP downtime can halt operations across finance, operations and supply chain. Executives should maintain regular encrypted backups of critical data. However, backups don’t matter if recovery hasn’t been tested. Testing DRPs ensures you can confidently restore operations quickly, minimizing downtime and data loss. Store backups securely, preferably offsite or on the cloud.

5. Bolster Authentication Mechanisms

Strong authentication is your first line of defense. Mandate strong, complex passwords that include a mix of at least 19 upper and lowercase letters, numbers and special characters. Implement a policy to prevent password reuse and encourage regular changes.

However, passwords alone are not enough. You should also enforce multi-factor authentication (MFA) for all ERP users, particularly those with administrative or financial access. This requires users to provide two or more verification factors before gaining entry, drastically reducing the risk from stolen credentials.

6. Monitor and Audit Activity

Use proactive monitoring tools to detect and respond to unusual activity before it turns into a major breach. Activate and monitor system audit logs to track user activity, configuration changes and data access. Look for unusual patterns, such as logins outside of business hours or attempts to access restricted data. Schedule regular security audits, vulnerability scanning and penetration testing to also help identify gaps and enforce compliance with regulations like GDPR or HIPAA.

7. Train Your Employees

The human element remains the weakest link in almost every security chain. Implement mandatory, recurring cybersecurity awareness training for all employees, focusing on security best practices and how to report a cyber incident.

Bonus Tip: Align ERP with Strategic IT Leadership

Organizations without clear strategic oversight often rely on reactive fixes instead of proactive protection. Since ERP security requires coordination across IT operations, cybersecurity and business leadership, it’s vital to ensure your ERP powers decisions, workflows and growth. The best way to do this? A Fractional CIO.

At Thriveon, our Fractional CIO bridges technical execution with business strategy, risk management and long-term planning. We align your company with 500 industry best practices to ensure your foundation remains rock-solid.

Request a consultation today for more information.