Geopolitical Impact on Enterprise Systems: Strengthening SAP Security & Controls in Uncertain Times

Part 1 of 3: Evolving Threat Landscape & SAP Risk Areas

In today’s volatile geopolitical climate, SAP customers are facing challenges that extend far beyond traditional IT concerns. From trade sanctions and shifting data privacy laws to rising cyber threats and complex global supply chains, organizations must rethink how they secure and manage their Enterprise Systems. These changes are especially critical for organizations doing business in high-risk regions.

SAP systems, often at the heart of enterprise operations, are directly exposed to this evolving risk landscape.  Companies are now being forced to rethink their SAP landscapes across several dimensions:

• Harden cybersecurity and access controls to defend against cyberattacks, insider threats, and espionage

• Ensure compliance with sanctions, data sovereignty laws, and access restrictions based on geography and user roles

• Segment or isolate SAP systems in high-risk countries to limit exposure and enable regional compliance

• Control sensitive master data (e.g., tariff codes, vendor records, country of origin) to avoid customs issues and trade violations

• Monitor supply chain dependencies in real-time through SAP analytics to detect and respond to partner risk

• Embed trade compliance and screening into SAP processes to detect violations before they happen

• Secure non-production environments to prevent leaks of regulated or sensitive data from sandbox and test systems

• Implement strong SoD and fraud controls across both user and machine identities to prevent manipulation of financial and compliance-critical processes

Part 1: The Evolving Threat Landscape in SAP Security

Let’s take a closer look at the most urgent geopolitical risks through the lens of SAP Security & Controls.

• Harden cybersecurity and access controls

In the current geopolitical climate, SAP systems are increasingly targeted by cybercriminals and nation-state actors seeking to exploit vulnerabilities. A robust cybersecurity framework is critical to defend against these evolving threats. Regular patching, multi-factor authentication (MFA), and role-based access control (RBAC) should be standard practices. Additionally, the need for real-time monitoring has never been more crucial. The SAP audit log serves as a vital tool for detecting suspicious activity and security events. By regularly analyzing the audit log, organizations can identify and respond to unauthorized access attempts, data exfiltration, and potential breaches.

The identification and tracking of IP addresses accessing SAP environments to detect access from sanctioned countries or unusual location is another key component to detect and mitigate threats. Integrating SAP logs with a SIEM system offers centralized monitoring and faster identification of threats. A tool like SecurityBridge, an SAP security monitoring tool, can pre-configure security event triggers to monitor specific risks and integrate with SIEM systems.

• Ensure compliance with sanctions, data sovereignty laws, and access restrictions

As data sovereignty laws tighten globally, SAP systems must ensure compliance with regional regulations like GDPR in Europe, China’s Data Security Law, and others that require sensitive data to remain within national borders. For businesses working in regions with strict data localization requirements, tools like data masking or encryption should be utilized to protect information, especially when handling offshore teams or teams from high-risk regions.

When working outside Europe, for instance, companies can mask data for users in offshore locations. Data access should be region-specific, and cross-border data transfers should only occur under strict safeguards. Additionally, to maintain compliance, it is crucial to protect not only standard transactional data accessed via Fiori apps and transaction codes, but also WebDynpro apps, Debugging, CDS views, HANA DB, and other critical components. These should all be governed by specific data privacy controls, ensuring that the data is never exposed to unauthorized parties.

• Segment or isolate SAP systems in high-risk countries

Geopolitical risks can be mitigated by segmenting or isolating SAP systems based on geographical regions. This strategy helps contain any disruptions or compliance issues that may arise in high-risk areas. Businesses can gain flexibility in adopting local systems or configurations. A prime example of this approach is Saudi Aramco, which has long isolated its systems to mitigate geopolitical risks.

This approach allows SAP environments to be more resilient to political instability or regulatory changes in specific regions. By isolating systems, organizations ensure that issues in one region do not affect operations globally, and cybersecurity becomes more manageable by limiting the scope of potential threats, however segmenting needs to be balanced with operational efficiency.

🚨 Coming Up Next: Master Data & Trade Compliance

As geopolitical friction reshapes global trade, even a small misstep in your SAP master data, like an incorrect HS code or unvetted supplier, can trigger fines, shipment delays, or sanctions violations. In Part 2, we’ll explore how to lock down sensitive data, embed trade compliance, and use SAP analytics to protect your global supply chain from legal and operational disruptions.

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