Kinds of Security Risks for Organisations Implementing ERP

Kinds of Security Risks for Organisations Implementing ERP

Unauthorized Access 

ERP software generally comes with a set of standard roles that are allocated to users on the basis of their functional tasks in the organization. Consequently, clients plugin user-based controls and limit a user’s software access on the basis of their customization and authorization level. For example, an accounts clerk would not possess access to the inventory management module in the ERP. However, there is a risk of users creating fraudulent transactions, making unapproved updates, or submitting entries with transaction errors that are preventable.

The third security issue arises when all of a client’s needs are not met by the ERP as they didn’t accurately report their requirements to the ERP vendors, thus to make up for the absent functionalities they end up using other software which may have security issues of their own.

Loopholes During Implementation Responsible for Security Loopholes

It is only when serious security breaches occur after the ERP system has been set into motion that businesses and individuals start to take note of it. Omissions and commissions made during implementation are usually responsible for potential security risks.

The scenario may lead to companies having to make corrections after they have gone life, which is a tedious, expensive and disruptive process that could result in bottlenecks and loss of productivity. Moreover, a compromised ERP system as far as security is concerned can eventually lead to operational hurdles, data privacy issues, and fraud.

Uninterrupted Monitoring Is The Solution

ERP vendors, as well as clients, need to adopt a 360-degree approach as far as security and controls are concerned. They need to focus on specific client requirements and manage risks by devising strategies aimed at protecting the integrity, confidentiality of information, and accessibility. The approach should be to focus on risk minimization during the implementation period itself and avoid expensive rework. With an increasing number of users and progressively more complex and integrated information systems, new levels of transaction-level security would be required.

If you’d like to know more about how Multiable ERP system can help your business grow, contact for a free consultation with one of our experts at Multiable.