How Business Central keeps your business and data safe and secure

In an era when cybersecurity and regulatory compliance are non-negotiable, businesses need ERP platforms that they can trust. Microsoft Dynamics 365 Business Central stands out not only for its functional breadth, but also for its deep investment in security, data governance, and future-ready AI controls. For Dynavics and our customers, this means confidence that your business backbone is safe, both now and into future.

Data governance and access controls

At the heart of any secure system lies strong data governance. Microsoft emphasises a structured approach: clear policies, role definitions, and oversight mechanisms to ensure data is handled consistently, from start to finish.

Business Central implements robust multi-layer access control. You can define permissions at the database, company, object (table), and record level, enabling the principle of least privilege across your organisation. Each user is assigned permission sets and roles tailored to their function, preventing unauthorised access even within a shared environment.

Each Business Central tenant lives in an isolated database (data isolation), so there’s no risk of cross-tenant data leakage.

Encryption, key management and site security

Encryption is foundational, and Business Central delivers this end to end. Data at rest is protected using SQL Server Transparent Data Encryption (TDE) by default; backups are likewise encrypted. Network traffic, between clients, services, and integrations, is encrypted in transit using industry standard TLS (version 1.2 or above).

For customers needing extra control, Business Central supports customer-managed keys (CMK). You can rotate keys on demand or revoke Microsoft’s access, meaning that in certain scenarios, Microsoft cannot decrypt the data without your key.

On the infrastructure side, Business Central is built on Azure, which undergoes regular third-party audits for ISO/IEC 27001 compliance, which is the gold standard for information security management systems. Microsoft’s global security governance program ensures consistent policy implementation across all services.

Business Central environments can also be protected by firewall configurations or network security groups. Microsoft publishes “service tags” (ranges of IPs used by the Business Central service) which can be embedded into traffic rules so only allowed networks connect.

AI governance and future compliance

As AI becomes embedded in business systems more broadly, governance over AI is increasingly vital, not just technically, but ethically and legally. Microsoft has committed to “Responsible AI” principles;  fairness, reliability, privacy, accountability, transparency, all applied throughout their services.

ISO/IEC 42001 (AI management) is emerging as a standard for companies that provide or consume AI systems. It offers structured guidance for risk management, ongoing evaluation, and balancing innovation with safety.

In Microsoft’s Data Protection Requirements (DPR) version 10, new mandates specifically address AI, and reference ISO 42001 for suppliers to adopt. If Dynavics or partner developers build AI-driven features or analytics on top of Business Central, alignment with these frameworks helps future-proof the solution.

Operationally, a good AI governance strategy should include logging and monitoring model performance, bias detection, rollback triggers, and human oversight. Microsoft’s internal “Responsible AI Standard” mandates review and controls over AI models at design, deployment, and monitoring stages.

How this gives you confidence in us

• Strong foundations, not add-ons: Security and governance are baked in, not bolted on
• Granular control: Dynavics can enforce strict access segmentation and compartmentalisation
• Customer sovereignty: With CMK, you control crypto keys and can isolate key access
• Audit credentials: Microsoft’s ISO 27001 posture means external assurance, essential for enterprise clients
• AI-ready and future aligned: The architecture is built to support evolving regulations and standards around AI, minimising risk in later versions

In summary, Microsoft Business Central is not just feature-rich, it’s built on a foundation of security, governance, and compliance. For Dynavics customers, that means you can rely on it today, and trust that it’s built to evolve in a safe and controlled way as your business and the regulatory landscape grow.

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