How to secure your ERP system

Manufacturers rely on their ERP system to connect functions, streamline processes, and provide critical decision-making data. As ransomware and cyberattacks increase, securing this system has become a top business priority, not just an IT concern.

Why are ERP systems attacked?

• ERP systems hold high-value, confidential information. If attackers gain access, they can:

  • Steal personal data about employees, customers, and suppliers.

  • View, change, or delete financial records.

  • Disrupt operations by corrupting data or shutting down key processes.

  • Remove or alter logs and traces to hide their activities.

  For many companies, the impact of such a breach would be severe and potentially devastating.

  ​

The challenge of securing an ERP system

ERP systems are complex, with many moving parts:

• Business processes and workflows.

• Master data.

• Hardware, operating systems, and network infrastructure.

• Integrations with internal and external applications.

Few businesses have the skills and resources to secure all these layers effectively for an on-premise ERP. That’s why cloud ERP is often the stronger security option.

• Physical security: On-site servers can be accessed, damaged, or stolen, while reputable cloud vendors meet strict physical and data-center security standards.

• Software security: Cloud providers employ dedicated security teams and advanced tools that most manufacturers cannot match internally.

By contrast, on-premise legacy systems typically lack up-to-date protections and in-house expertise, leaving them more exposed to attack.

Potential vulnerabilities

• Attackers can exploit multiple weak points in and around an ERP system.

  Technical vulnerabilities include:

  • Network: Interception or modification of network traffic.

  • Operating system: Unpatched OS vulnerabilities used as entry points.

  • Passwords: Weak, reused, or shared passwords.

  • File access rights: Poorly controlled access to sensitive files.

  • Integration protocols: APIs without strong security and encryption.

  • ERP authentication: Weak login controls, shared accounts, and missing multifactor authentication.

  Organizational gaps also increase risk:

  • No clear incident response plan for reporting and escalating issues.

  • No regular vulnerability scanning or penetration testing to uncover problems.

  ​

How to protect your ERP system

Modern digital security increasingly follows the Zero Trust architecture defined in NIST SP 800-207. Zero Trust assumes there is no fixed network perimeter; users and resources can be anywhere, on-premise or in the cloud.

The following key principles form Zero Trust:

• • Continuous verification: Always verify access for every user, device, and request.

  • Resource protection: Focus on protecting assets, services, workflows, and accounts.

  • Limit impact: Design systems so that, if a breach occurs, the damage is contained.

Within ERP, this should translate into strong access controls:

• Role-based access: Grant permissions based on job role and responsibilities.

• Separation of duties: Ensure no single user can complete critical transactions end to end.

• Electronic signatures: Capture who did what and when, creating a clear audit trail.

Practical ways to protect your ERP system

You can significantly improve ERP security by tightening everyday controls and practices.

1. Strengthen identity and access

   • Enforce strong password policies and good password hygiene.

   • Require multifactor authentication for all ERP access.

   • Add a VPN layer for remote access where appropriate.

2. Keep software and systems up to date

   • Apply security patches and updates promptly, instead of delaying to avoid downtime.

   • Regularly review ERP, OS, and database configurations for known weaknesses.

3. Protect your most important information

   • Identify critical data such as customer, financial, and IP-related information.

   • Apply strong access controls and file integrity monitoring to these data sets.

4. Secure integrations and IIoT devices

   • Inventory all interfaces between the ERP system and other applications.

   • Secure APIs and integration points with appropriate authentication and encryption.

   • For IIoT devices and sensors, control access and secure data transmission end to end.

5. Assess ERP security regularly

   • Follow ISACA guidance to assess ERP servers for software vulnerabilities, configuration errors, duty-segregation conflicts, and compliance gaps.

   • Incorporate vendor security recommendations into your review process.

6. Train people and rehearse response

   • Educate all ERP users about common attack methods, including phishing and social engineering.

   • Include the ERP IT team in cyber incident drills and simulations so they know how to respond.

ERP security is everyone’s responsibility

Protecting an ERP system from external and internal threats is everyone’s responsibility, not just IT’s. Any successful intrusion can quickly disrupt operations, damage finances, and harm your reputation.

Technical controls must be matched with clear organizational practices so that people are aware, informed, and committed to keeping the ERP environment secure. With the right architecture, processes, and culture in place, manufacturers can significantly reduce risk and keep their ERP at the heart of a resilient, trusted business.