We consistently praise Enterprise Resource Planning Software (ERP) and the numerous advantages these systems offer companies across all sectors, as you may have observed from reading most of our posts.
ERP systems ought to oversee and integrate every facet of an organisation’s operations, including accounting, procurement, human resources, inventory management, and customer relationship management.
With the growing role of AI in Dynamics 365 ERP automation, businesses can now further enhance efficiency, accuracy, and decision-making. Additionally, organisations are beginning to explore the benefits of ERP blockchain integration, such as tamper-proof transaction records and improved supply chain transparency.
Nonetheless, ERP software has flaws that need to be fixed.
With more companies depending on cloud-based systems like Dynamics 365, ERP Security 2025 is more important than ever. But what do you need to know about it? Let’s discuss all the security measures, such as RABC, SOD, and Cyber-resilience, in this article.
Importance of ERP Security in 2025
In 2025, ERP security is no longer just about preventing data breaches—it’s about safeguarding business continuity. With increasing cyber-attacks, stricter compliance regulations, and growing reliance on the cloud, securing ERP systems has become a business-critical priority.
Data within ERP platforms includes financial records, employee information, supply chain details, and customer data, making it a prime target for hackers. Without the right security layers in place, organisations risk financial loss, reputational damage, and operational downtime.
This is why implementing role-based access control (RBAC), segregation of duties (SoD), and strong cyber-resilience practices is essential for modern enterprises.
Top ERP Security Best Practices 2025
When you are focusing on securing ERP, here are the security essentials to keep locked:
1. Enhance Access Control With RBAC
Modern ERP implementations must enforce role-based access control in Dynamics 365 to guarantee that users only see the information they require. For RBAC to be effective, users must be assigned to roles based on the least privilege principle.
For instance, an accounting clerk can view financial data but not human resources records. Exact role and duty management, sophisticated audit trails, and even temporary role assignment are among the most recent Dynamics 365 ERP Security features offered by Microsoft.
Administrators can quickly restore safe defaults and gain transparency by defining responsibilities by process and capturing security configurations in real time. These roles can be tailored by collaborating with an ERP consultant during a Dynamics 365 implementation services engagement or D365 implementation.
- Use least-privilege access and clearly define roles. Use the new role management features in Dynamics 365 to precisely customise permissions.
- Turn on versioning and role audit trails. Keep track of all permission modifications and take a snapshot of the settings for convenient comparison or rollback.
- For projects or absences, use temporary roles. Future features from Microsoft will enable time-bound elevated access, lowering the possibility of long-term over-privilege.
- Review roles regularly. Ensure that each user's roles align with their current responsibilities, particularly during a D365 implementation.
2. Enforcing Segregation of Duties (SoD)
Error and fraud prevention are of utmost importance. To ensure that “no single system user controls all aspects of any critical business process,” Dynamics 365 ERP now comes with built-in SoD controls.
In reality, a company identifies incompatible tasks (e.g. payment creation vs. approval). The system flags someone who tries to play both roles. Dynamics 365 ERP’s segregation of duties feature is crucial for compliance. To implement SOD:
- Collaborate with IT and business to identify tasks (such as adding a vendor and approving payments) that should never be assigned to the same individual.
- Utilize the ERP's validation engine to find infractions automatically and take swift corrective action.
- Prepare for audits and run compliance reports to ensure accurate and timely reporting. Logging is integrated into the new tools, allowing regulators to observe controls in action.
Businesses make sure that no one user can get around internal controls by implementing SoD across the finance, procurement, and other modules. By integrating these procedures with an ERP consultant, SoD rules are ensured to be aligned with technology and policy.
3. Cyber Resilience & Data Protection
Cyber Resilience in Microsoft ERP includes safeguarding ERP data from attacks and outages. Being resilient entails foreseeing and overcoming setbacks.
Businesses gain from Microsoft’s worldwide security investments when Dynamics 365 is implemented in the Dynamics 365 ERP cloud. For instance, 95% of Fortune 500 businesses use Microsoft Cloud, and the company invests more than $1 billion annually in cloud security. Customers are still accountable for their data.
Best Practices for Cyber Resilience in Dynamics 365 ERP
- Test recovery plans and regularly back up ERP data. Store encrypted backups either offsite or in a different cloud region. Roles and procedures should be documented so that you can promptly resume operations following an outage.
- Keep your ERP separate from less important systems. To restrict access, use firewalls, virtual private networks, and zero-trust networks. This keeps breaches contained and isolates threats.
- Install all OS and ERP software updates as soon as possible. Attackers frequently enter through outdated systems. To receive security updates fast, enable automatic updates in the Dynamics 365 ERP cloud.
- Make MFA mandatory for all logins. Even if passwords are compromised, the likelihood of unwanted access is significantly decreased by adding a second factor.
- Maintain thorough records of all system modifications and user activity. Connect with SIEM tools to receive real-time alerts about suspicious activity. Examine logs frequently to identify irregularities early.
- Ensure that private information is encrypted both during transit and at rest. Data loss prevention and encryption are supported by Dynamics 365. To protect personal data, abide by compliance requirements (such as the Australian Privacy Act or the GDPR).
These Dynamics 365 data protection best practices work well together to provide a robust defence. To set up Azure security baselines, identity protection, and compliance tools, organisations should also utilise Dynamics 365 implementation services or engage qualified consultants.
In summary, cyber resilience entails having plans (such as backups and incident response) to quickly recover and continue operations, in addition to preventing incidents.
Conclusion
ERP Security in 2025 demands strong measures, such as RBAC, SoD, and cyber resilience, to protect mission-critical data. With Dynamics 365 ERP’s no-code/low-code capabilities, businesses can scale securely.
At DHRP, our ERP implementation services empower organisations with advanced Dynamics 365 security, ensuring compliance, continuity, and resilience across operations.
Partnering with DHRP means not only adopting secure ERP but also building future-ready systems that strengthen trust and business growth.
FAQs
RBAC in Dynamics 365 ERP ensures users only access necessary data by assigning roles based on least privilege. This improves security, prevents misuse, and supports compliance through detailed audit trails and role management.
SoD in Dynamics 365 ERP prevents error and fraud by ensuring no single user controls all steps of critical processes. It enforces compliance, flags conflicts, and strengthens financial and operational integrity across modules.
Cyber resilience ensures Dynamics 365 ERP systems can withstand and recover from attacks or outages. It combines backups, MFA, encryption, and monitoring, safeguarding business continuity, compliance, and data security against evolving 2025 cyber threats.
