In today’s fast-evolving digital landscape, ensuring robust security and regulatory compliance is critical for businesses operating in Japan. Microsoft Dynamics 365 Business Central provides a secure, cloud-based ERP platform with enterprise-grade security features. For Japanese companies navigating data privacy laws and international compliance standards, Sysamic offers localized expertise and trusted guidance to implement these controls effectively.
This blog explores the core aspects of Business Central’s security architecture—authentication, data encryption, service integration, and compliance—while highlighting how Sysamic supports businesses in Japan to align with both global and domestic security expectations.
Identity Management with Microsoft Entra ID
Business Central uses Microsoft Entra ID (formerly Azure Active Directory) to manage user authentication securely. This identity platform is preconfigured with Business Central and offers capabilities like Conditional Access, which enables businesses to enforce stricter login policies based on device health, location, or risk level.
In Japan, where regulatory compliance and operational precision are critical, Sysamic helps companies fine-tune Conditional Access policies to meet industry-specific demands—such as financial services or manufacturing—and ensures secure access for both internal teams and external consultants.
Sysamic supports local authentication audits and Microsoft Entra ID configuration aligned with Japan’s cybersecurity standards.
Tenant-Level Data Isolation and Encryption
All customer data in Business Central is hosted in a tenant-isolated environment, ensuring your business’s information is never co-mingled with others’. Furthermore, data is encrypted at rest using Transparent Data Encryption (TDE), and all backups are encrypted to protect your environment even during restoration or migration scenarios.
Japan’s Personal Information Protection Law (PIPL) and other local regulations emphasize data integrity. Sysamic works closely with companies to verify encryption configurations and backup policies, reducing risks and ensuring alignment with both global and Japanese data protection frameworks.
Secure Integration with Power BI and External Services
Business Central offers seamless integration with Power BI, APIs, and third-party systems. However, to maintain data integrity and security, Microsoft recommends using TLS-based encrypted protocols when connecting external services.
In Japan, where remote work adoption has increased, Sysamic assists clients in setting up secure integrations with Business Central—especially for cloud reporting with Power BI or e-commerce synchronization—while ensuring that the entire communication pipeline remains secure and compliant.
Advanced Data Governance with Customer Lockbox
In rare cases where Microsoft engineers require access to customer environments (e.g., during high-level troubleshooting), Customer Lockbox ensures that you maintain full control. Admins must explicitly approve or deny access requests via the Power Platform Admin Center.
Sysamic ensures that Japanese enterprises, often working in sectors requiring strict confidentiality (such as legal, medical, or export industries), are equipped to manage Lockbox policies effectively. Our local consultants help configure administrative roles to guarantee the right stakeholders remain in control of data access decisions.
Take Control with Customer-Managed Encryption Keys (CMK)
While Business Central automatically encrypts data using Microsoft-managed keys, organizations in Japan seeking greater control over their data can opt for Customer-Managed Encryption Keys (CMK). This allows businesses to rotate or revoke keys as needed, ensuring that Microsoft—or any other party—cannot access data without your permission.
Sysamic’s experienced consultants assist clients in Japan with:
Linking Business Central environments to Power Platform environments with CMK.
Managing lifecycle operations like key rotation or revocation.
Ensuring data continuity and compliance during backup, export, or restore operations.
By leveraging CMK, Japanese businesses gain the ability to align with advanced data privacy regulations and internal corporate security policies.
Why Sysamic?
Based in Japan, Sysamic is uniquely positioned to help companies leverage Microsoft Dynamics 365 Business Central securely and efficiently. With a deep understanding of Japanese corporate structures, compliance expectations, and global best practices, we ensure that your Business Central deployment remains secure, compliant, and tailored to your industry.
Connect with Sysamic to implement enterprise-grade security configurations that meet your business and regulatory needs.