Is Business Central Secure? A Look at Microsoft's Cloud Protections

When your organization runs its entire business on a cloud-based ERP like Microsoft Dynamics 365 Business Central, trust in its security is essential. You’re managing the lifeblood of your company: financial data, customer information, supply chain operations, and proprietary insights. So, is Business Central truly secure enough to protect all of it?

The short answer is yes. However, a better answer is that Business Central is as secure as the combination of Microsoft’s Azure cloud protection and your own governance allows it to be.

The power of Azure security

At the heart of Business Central’s security lies Microsoft Azure, one of the most secure and extensively audited cloud platforms in the world. Microsoft invests billions of dollars annually in cloud security, employing thousands of cybersecurity professionals who monitor its data centers 24/7. The Azure data centers are secured by biometrics, surveillance, and restricted physical access.

Azure’s architecture is designed for resilience and isolation. Although Business Central is a multi-tenant service, your company’s data is logically separated from that of others, ensuring that one organization’s information cannot be accessed by another. The platform is continuously hardened through Microsoft’s Security Development Lifecycle (SDL), which integrates threat modeling, code reviews, and vulnerability patching into every release.

It’s important to understand that this protection aligns with Microsoft’s shared responsibility model. Microsoft secures the infrastructure and platform, but your organization remains responsible for how Business Central users access and interact with your data.

Protecting identities with MFA and Zero Trust

Most security breaches don’t start with a sophisticated hack—they start with a stolen password. That’s why Business Central relies on Microsoft Entra ID (formerly Azure Active Directory) to manage identity and access, allowing companies to adopt a Zero Trust approach: Never assume access is safe; instead, always verify it.

Multi-Factor Authentication (MFA) is a big part of Zero Trust. With MFA enabled, even if a password is compromised, the attacker cannot gain access without a second factor, such as a verification app or security token. According to Microsoft’s own studies, MFA can block more than 99% of account compromise attempts. In Business Central, enabling MFA across all users—especially administrators and finance roles—is one of the most effective, no-cost ways to strengthen your defenses.

Conditional Access policies add yet another layer of protection. These policies let you define the conditions under which users can log in. For example, blocking access from unknown devices or unapproved countries. Together, MFA and Conditional Access create a protective layer of security that constantly adapts to evolving threats.

Encryption: Your data’s silent guardian

Even if someone manages to intercept your data, encryption ensures they will not be able to read it. Business Central encrypts information both in transit (as it moves between servers and devices) and at rest (when it’s stored in the database). All communications are protected with TLS 1.2 or higher, while databases and backups are encrypted using Transparent Data Encryption (TDE)—a technology proven across Microsoft’s enterprise products.

Every tenant’s data is encrypted automatically, and Microsoft manages the encryption keys under strict controls. For organizations that require an extra level of assurance, options like Bring Your Own Key (BYOK) through Azure Key Vault are available, allowing you to manage your own encryption lifecycle.

In short, whether your data is being processed, transmitted, or backed up, it remains sealed and protected by multiple layers of encryption that are visible only to authorized users.

Role-Based Access Controls: Keeping everyone in their lane

Of course, not every security threat comes from outside. Accidental (and sometimes intentional) misuse of data internally can be just as damaging. That’s why Role-Based Access Controls (RBAC) in Business Central are an important element in securing your system.

Every user is assigned specific roles and permission sets that determine exactly what they can see and do down to the table or field level. This “least privilege” model ensures that users have access only to the data and functions required for their job. For example, an accounts payable clerk can process invoices but not modify vendor bank details; a warehouse supervisor can adjust inventory but not access payroll data.

These permissions aren’t static, either. As your organization evolves, you can easily adjust user access through security groups and permission sets, ensuring compliance with internal governance and controls, such as segregation of duties.

Be sure to read our blog series for more details on managing user permissions, permission sets, and security groups in Business Central.

Continuous oversight: Audit trails and monitoring

Another cornerstone of Business Central’s security model is transparency. The system includes a change log feature that records when users add, modify, or delete critical data. That means if something unexpected happens—for example, a journal entry disappears or a user’s permissions change—you can see who made the change and when. Work with your Business Central partner to configure change log entries to fit your specific needs.

Beyond internal logging, tools like Azure Application Insights and Power BI provide enterprise-grade monitoring and telemetry for Business Central.

Azure also offers advanced analytics and AI to detect anomalies, such as unusual login activity, failed sign-ins, or suspicious bulk data exports. For organizations in regulated industries or those subject to audit requirements, these capabilities provide the level of traceability and accountability that auditors and compliance officers expect.

A focus on constant surveillance and security

Microsoft continually seeks to enhance security within its network. Security updates and patches are applied automatically, protecting customers from new vulnerabilities without requiring downtime or manual intervention. Azure also defends against large-scale Distributed Denial of Service (DDoS) attacks before they can even reach your environment.

For developers and integrators, Microsoft provides secure APIs and connection protocols, ensuring that external systems can connect to Business Central without exposing credentials or sensitive endpoints. That means you can integrate your ERP with other systems, such as CRM, eCommerce, or analytics platforms, without sacrificing security.

Learn more

Built on Azure, strengthened by modern identity controls, protected by encryption, and backed by constant monitoring, Business Central provides a security foundation that meets the needs of even the most risk-averse industries. Keep in mind that technology alone isn’t a complete solution; people and processes are equally important.

Contact ArcherPoint by Cherry Bekaert to learn more about how you can strengthen Business Central security and establish better governance and procedures for your organization.

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