🔐 Best Practices for Authorization Management: Avoiding SoD Conflicts in S/4HANA and Azure
Eckhart M.
Chief Information Security Officer | CISO | Cybersecurity Strategist | Cloud Security and Global Risk Expert | AI Security Engineer
By Eckhart Mehler, CISO, Cybersecurity Strategist, Global Risk and AI-Security Expert
Organizations operating with both SAP S/4HANA and Microsoft Azure face a complex challenge: balancing seamless process flows with airtight security. Central to this challenge is ensuring proper Segregation of Duties (SoD). For Chief Information Security Officers (CISOs) and compliance teams, poorly managed SoD not only opens the door to fraud and unauthorized transactions but also exposes the organization to serious audit and governance risks. Below, you will find an in-depth overview of how to implement robust authorization management, anchor SoD requirements within your Information Security Management System (ISMS), and leverage native SAP/Azure tools.
⚙️ 1. Why Segregation of Duties Is Non-Negotiable
SoD is about preventing any single individual from having unchecked authority over a critical process. This ensures that no one can—intentionally or unintentionally—bypass internal controls, leading to potential errors, fraud, or data breaches. Common motivation points include:
Compliance Requirements
Operational Integrity
Dividing responsibilities between procurement, accounting, and vendor management means that the same person cannot create a vendor record and pay that vendor’s invoices without oversight.
Risk Mitigation
Forensic and investigational processes become much smoother when duties are well-documented and traceable.
Real-World Example
In a scenario where a finance manager can both set up new vendors and approve payments, the organization faces a high risk of fraudulent “shell vendor” payments. Proper SoD would require at least two people to complete these tasks separately.
🛡️ 2. Embedding SoD Principles into the ISMS
Your ISMS sets the tone and structure for security across the organization. Ensuring SoD is deeply woven into this framework involves:
1. Comprehensive Policy Documentation
Your ISMS should explicitly define which processes and responsibilities must be separated. For instance, “No individual shall possess end-to-end control over the purchase-to-pay cycle.”
2. Risk Assessment and Classification
Map your business processes in S/4HANA and Azure to identify potential SoD conflicts. Classify these conflicts by severity, focusing on processes with high financial or operational impact.
3. Monitoring and Auditing
The ISMS should mandate periodic access reviews. Use automated systems or scheduled manual checks to verify that the right people have the right access—and that no SoD conflicts have slipped through the cracks.
4. Continuous Improvement Cycle
Revisit SoD controls during each PDCA (Plan-Do-Check-Act) cycle. Incorporate audit findings and emerging regulatory expectations (e.g., Sarbanes-Oxley (SOX), COBIT 2019) into updated role definitions and review processes.
🔎 3. Common Approaches to SoD Implementation
While multiple methodologies exist, these are among the most reliable:
1. Role-Based Authorization (RBA) in S/4HANA
Adopt SAP’s principle of least privilege. Create distinct roles (e.g., “Purchase Requisition Creator,” “Purchase Order Approver,” “Vendor Master Maintainer”) and ensure they do not overlap in ways that create conflicts.
2. Functional Segregation
Isolate tasks that pose typical SoD risks: for example, invoice approval should never reside within the same role as invoice payment execution.
3. Rule Set Libraries
Many organizations use standardized SoD rule sets (either proprietary or from SAP GRC Access Control) to spot potential conflicts more swiftly. These libraries map out which T-codes (transaction codes) or Fiori apps should not co-exist under one role.
4. Periodic Recertification
Biannual or quarterly recertifications force managers to reevaluate role assignments, ensuring they remain appropriate and conflict-free.
💡 4. Leveraging SAP & Azure Native Tools
SAP S/4HANA
Automates the identification of SoD conflicts before roles are assigned.
Offers continuous monitoring and a workflow-driven approval system for role changes.
Reference: SAP Access Control Documentation (check for the S/4HANA version compatibility).
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Also known as “Firefighter” IDs, this mechanism provides temporary, heavily audited elevated access for critical issues.
Ensures that a second party can review any actions taken under this emergency access.
Microsoft Azure
Central identity hub with Role-Based Access Control (RBAC).
Privileged Identity Management (PIM) further refines access by granting just-in-time (JIT) privileges and forcing approvals.
Integrate Microsoft Entra ID logs with SIEM tools to detect suspicious patterns.
A cloud-native SIEM/SOAR solution that correlates events across various sources, including potential SoD breaches.
A powerful aggregator for real-time monitoring and alerting on unusual or high-risk activities.
Real-World Example
A global manufacturing firm running SAP S/4HANA used SAP GRC Access Control to generate monthly SoD reports. The same organization leveraged Azure AD PIM to ensure no user in the Azure portal could create or approve high-risk user accounts without explicit approval. This two-pronged approach significantly reduced both administrative overhead and compliance breaches.
✅ 5. Ensuring Long-Term SoD Compliance
1. Business Process Mapping
Collaborate with finance and operational teams to document end-to-end processes in S/4HANA and Azure, focusing on critical points where SoD is most crucial (e.g., procure-to-pay, order-to-cash).
2. Ownership and Accountability
Establish clear lines of responsibility. Typically, process owners, not just security or IT, should be involved in SoD design to ensure alignment with real-world workflows.
3. Automation & Continuous Monitoring
Manual checks are prone to oversight. Implement automated triggers in SAP GRC Access Control and Microsoft Entra ID Conditional Access policies to catch any unauthorized role assignment.
4. Escalation Workflows
Define who gets notified if a SoD conflict arises. This should escalate to risk managers, compliance teams, and ultimately the CISO if the breach remains unresolved.
5. Education & Training
Regularly train staff on best practices, focusing on common pitfalls and how to report suspicious changes.
Share success stories or near-miss incidents in internal newsletters to keep the workforce engaged.
🏆 6. Elevating Your SoD Maturity
Achieving SoD compliance in a hybrid S/4HANA-Azure setup is not a one-time event—it requires ongoing vigilance and refinement. World-class organizations often:
Treat SoD not just as a compliance checkbox, but as a strategic safeguard supporting business integrity.
Stay updated on new features in SAP GRC Access Control and Microsoft Entra ID that enhance or automate SoD oversight.
Regularly consult authoritative sources such as the SANS Institute, ISACA, and vendor-specific documentation to keep SoD best practices current.
🎯 Conclusion
An effective Segregation of Duties framework is indispensable in safeguarding vital processes, maintaining governance standards, and passing audits with ease. By embedding SoD within your ISMS, leveraging tools like SAP GRC Access Control, Microsoft Entra ID PIM, and Microsoft Sentinel, and continuously refining your controls, you can maintain a high level of operational security that benefits both your internal and external stakeholders.
Feel free to share your questions or experiences in the comments below. From mitigating fraud risks to earning top marks in audits, well-managed SoD practices serve as both a protective shield and a hallmark of organizational excellence.
“The CISO Playbook: Mastering Cybersecurity Leadership, Strategy, and Innovation”, explore the evolving role of CISOs in today’s complex threat landscape. This series provides strategic guidance on positioning security leadership, leveraging cutting-edge technologies, and fostering a resilient security culture. Through practical insights and forward-thinking approaches, this collection empowers security leaders to navigate challenges, drive strategy and innovation, and shape the future of cybersecurity with confidence.
About the Author: Eckhart Mehler is a leading CISO, cybersecurity strategist, global risk and AI-security expert. Connect on LinkedIn and discover best in class CISO Thought Leadership.
This content is based on personal experiences and expertise. It was processed, structured with GPT-o1 but personally curated!