With advancements in digital technology, business management processes and ERP solutions are constantly evolving and consistently improving. For organizations of all sizes, streamlining daily operations and data management is pivotal to their overall success.
While convenience and organization are key, these ERP solutions must adhere to strict compliance and risk-aversion regulations. So, in this article, we will be considering some ways business-centric GRC can help strengthen SAP security. If this looks like what you would like to know, just keep reading!
SAP Security as a Risk Management Solution
Since the inception of this industry, SAP has established itself as a leader in business management software. As one of the very first companies to offer standardized software for ERP solutions, it has grown to partner with over 24,000 companies worldwide. And 77% of the world’s transaction revenue interacts with an SAP system at some point.
With cyber threats growing more precarious in today’s digital landscape, one of its key product offerings is SAP security. SAP security involves access management, data protection, and application security.
Every SAP system adheres to strict access controls through provisions such as the Identity and Access Management model (IAM), which helps manage access to certain types of company data for different employees.
The software supports data protection and privacy through certain security features and the detection of sensitive information. Solid security safeguards are also placed on the application that is used. These three functions work harmoniously together when a business’ overall cyber security strategy is well integrated with the SAP software.
However, corporations often need additional help setting up impenetrable cybersecurity systems that the SAP software can work with.
GRC Solutions and SAP
Strict GRC (Governance, Risk management, and Compliance) controls are necessary for companies running SAP, even with the aid of SAP security. These GRC functions must work in tandem with the access management and authorization policies SAP puts in place.
When a company employs a GRC solution, it may have one or more of the following objectives:
- To improve efficiencies within its business operations
- To comply with regulations by addressing data privacy and access control
- To create a sense of accountability for access risk amongst business users by making threats and policies easy to understand.
SaaS (Software-as-a-Service) that implements access risk management can be an efficient, affordable, and user-friendly tool for businesses that need immediate GRC visibility. These services are typically used on a pay-as-you-use basis.
Access Risk Management software quickly identifies any risk posed to SAP access and proactively prevents any risk associated with it, such as a request to change access control. It also recommends steps that could remedy a potential risk exposure.
Furthermore, this solution can be customized to suit a company’s bespoke needs and functions, ensuring optimal compliance tailored to the individual business unit.
The Importance of a Business-Centric Approach
A mistake that many businesses make is allowing all responsibility for risk aversion to fall on IT. In truth, data protection and risk aversion should be the responsibility of all business users and even all employees across all departments and at every level.
When an IT team is solely responsible for maintaining GRC solutions, these solutions often become afterthought services that run with little involvement from business users, resulting in decreased risk awareness and visibility.
In contrast, every line of defence is strengthened when each business user takes accountability for protecting sensitive business data.
According to the audit principle, every company has three lines of defence regarding risk management. The first line of defence is business and operational users, the second is the risk and compliance departments, and the third is audit and assurance.
While the first line of defence should be the strongest, due to these employees’ many years with the company, their familiarity with their departments, and the risks involved, businesses often neglect the line the most.
It is, therefore, crucial that GRC solutions are made to be business-centric. This means that they effectively lend themselves to the active participation of business users so that these individuals’ expert knowledge of the risks associated with their departments and roles can be used.
These solutions convert complicated GRC terminology into language that all business users can understand, enabling them to make more informed contextual decisions regarding risk management. Additionally, business operations performed by business-centric GRC solutions can save a company significant time and costs, as certain parts of the process are simplified, automated, and streamlined.
Final Note
Ensuring that GRC solutions are business-centric increases overall risk awareness and accountability throughout an organization. At the same time, it provides more efficient business operations and greater visibility of access management for business users.
This allows business users to make essential decisions associated with risk aversion and access management, ultimately empowering them and strengthening a company’s defence against risk.
