How do you manage EDI security and data protection in the cloud and on-premise?

1 Cloud EDI security

Cloud EDI offers many benefits, such as scalability, flexibility, and cost-effectiveness. However, it also requires you to entrust your data to a third-party provider, which may expose you to risks such as data breaches, unauthorized access, or compliance violations. To mitigate these risks, you need to choose a reputable and reliable cloud EDI provider that follows industry standards and best practices for security and data protection. You also need to review and understand the provider's service level agreements, policies, and procedures for data encryption, backup, recovery, and audit. Additionally, you need to monitor and control your own access and usage of the cloud EDI service, and implement security measures such as strong passwords, multi-factor authentication, and role-based permissions.

2 On-premise EDI security

On-premise EDI gives you more control and ownership over your data, but it also requires you to invest more in hardware, software, and maintenance. Moreover, it exposes you to risks such as hardware failures, software errors, or cyberattacks. To protect your data, you need to maintain and update your EDI infrastructure regularly, and apply security patches and fixes as soon as possible. You also need to backup your data frequently, and store it in a secure location. Furthermore, you need to enforce security policies and procedures for your staff and partners who access and use your EDI system, and educate them on the best practices and risks of EDI.

3 Data validation and verification

One of the key aspects of EDI security and data protection is ensuring that the data exchanged is accurate, complete, and consistent. Data validation and verification are processes that check the quality and integrity of the data before and after transmission. Data validation involves applying rules and standards to the data format, structure, and content, and rejecting or correcting any errors or anomalies. Data verification involves confirming the identity and authenticity of the sender and receiver, and ensuring that the data has not been altered or corrupted during transmission. Both processes can be done manually or automatically, depending on the complexity and volume of the data.

4 Data encryption and decryption

Another essential element of EDI security and data protection is ensuring that the data is unreadable and inaccessible to anyone who is not authorized to view or use it. Data encryption and decryption are techniques that transform the data into a secret code that can only be deciphered by the intended recipient. Data encryption can be done at different levels, such as the file, message, or transport level, depending on the security requirements and capabilities of the EDI system. Data decryption is the reverse process that restores the data to its original form. Both encryption and decryption require the use of keys, which are secret codes that are shared or exchanged between the sender and receiver.

5 Data backup and recovery

A vital component of EDI security and data protection is ensuring that the data is available and recoverable in case of any loss or damage. Data backup and recovery are processes that create and restore copies of the data in a different location or medium. Data backup can be done periodically or continuously, depending on the frequency and importance of the data. Data recovery can be done manually or automatically, depending on the severity and scope of the data loss. Both backup and recovery require the use of storage devices, such as hard drives, tapes, or cloud services, which should be secure and reliable.

6 Data compliance and audit

A crucial factor of EDI security and data protection is ensuring that the data meets the legal and regulatory requirements and standards of the industry and jurisdiction. Data compliance and audit are activities that monitor and evaluate the data quality, security, and privacy, and report any issues or violations. Data compliance involves following the rules and guidelines for data collection, storage, transmission, and usage, such as the General Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), or the Sarbanes-Oxley Act (SOX). Data audit involves reviewing and verifying the data records, logs, and reports, and identifying and resolving any discrepancies or anomalies.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?