Why SAP Application Cybersecurity Is Critical During Mergers & Acquisitions
Mergers and acquisitions (M&A) are common growth strategies for many organizations. However, as companies integrate new entities, they often overlook a critical factor: SAP application security. Without the right security measures, businesses risk inheriting vulnerabilities that can lead to financial losses, compliance issues, and reputational damage.
Key SAP Security Challenges in M&A
- Data Consolidation Risks: Integrating sensitive financial, operational, and customer data into existing SAP systems can expose vulnerabilities. Weak security practices may result in data breaches during this transition, making merger and acquisition cybersecurity a critical concern.
- Diverse Security Standards: Acquired companies often have different IT security protocols. Aligning these standards is crucial to ensure consistent protection across the enterprise.
- Increased Attack Surface: Each new acquisition introduces additional systems, users, and potential vulnerabilities, creating more entry points for cyber threats. This highlights the need for strong merger and acquisitions cybersecurity strategies to mitigate risks.
- Compliance Complexities: Different regulatory frameworks across acquired entities can complicate compliance. Robust SAP security helps maintain adherence to industry standards and legal requirements.
- Access Management Challenges: M&As increase the complexity of managing user roles and permissions within SAP, heightening the risk of unauthorized access.
- Business Continuity Risks: Security gaps during system integration can cause downtime, disrupt operations, and impact revenue.
- Intellectual Property (IP) Protection: M&As often involve transferring proprietary technologies. Strong SAP security safeguards these critical assets from theft or unauthorized access.
- Reputation at Risk: Security incidents within newly acquired entities can damage the parent company’s brand and erode customer trust.
- Cost Implications: Proactively addressing security during M&A reduces the likelihood of costly breaches, compliance fines, and remediation efforts.
- Smooth Integration: A solid SAP security framework facilitates seamless integration by mitigating risks and ensuring secure data flows.
The Risks of Overlooking SAP Security in M&A
Financial Risks:
- Regulatory Fines: Non-compliance can lead to substantial penalties.
- Data Breach Costs: Expenses from legal actions, customer notifications, and breach remediation can be significant.
- Operational Downtime: Security incidents can halt critical SAP functions, affecting productivity and revenue.
Reputational Risks:
- Brand Damage: Data breaches or compliance failures can tarnish the company’s reputation.
- Customer Churn: Security incidents can result in lost customer trust and loyalty.
Strategic Risks:
- Delayed Integrations: Security gaps can slow down post-acquisition integration.
- Loss of IP: Inadequate security increases the risk of intellectual property theft.
- Reduced Valuation: Ongoing security issues can diminish the company’s value in future deals.
Operational Risks:
- Insider Threats: Poor access controls heighten the risk of data misuse.
- Inconsistent Processes: Lack of unified security standards can lead to system inefficiencies and vulnerabilities.
Legal Risks:
- Litigation Exposure: Data breaches can result in legal action and contractual disputes.
- Contract Violations: Security lapses may breach M&A agreements, leading to penalties.
Securing SAP Systems for M&A Success
By prioritizing SAP application security during mergers and acquisitions, organizations can:
- Safeguard sensitive data
- Ensure regulatory compliance
- Protect intellectual property
- Maintain business continuity
- Preserve brand reputation
- Maximize shareholder value
Mergers and acquisitions bring complexity and risk—especially when it comes to integrating and securing critical SAP systems. The Onapsis Platform offers unmatched visibility, proactive threat detection, and automated compliance to help companies assess and secure newly acquired environments. With capabilities like vulnerability management, continuous monitoring, and control over user privileges, Onapsis ensures a smooth transition, minimizes security gaps, and strengthens your organization’s resilience during this critical phase.