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1. Define the agent’s permitted work
Write down the task in operational terms before enabling a connector. “Help with accounts payable” is too broad to authorize; specify whether the agent may retrieve invoice details, prepare a draft, change a record, post a transaction, or trigger an action in another system.
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Map each task to the minimum tools and operations needed. A read-only task should not expose update or delete functions simply because they come bundled with an extension. OWASP’s AI Agent Security Cheat Sheet recommends limiting tools and permissions to what the task requires; its LLM06:2025 guidance on Excessive Agency warns against giving an agent unnecessary capability.
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- Separate reading, drafting, editing, posting, and external actions rather than treating them as one permission.
- Exclude broad, open-ended tools and actions that are not necessary for the defined task.
2. Decide whose identity the agent uses
Document whether the agent acts with a human user’s delegated identity or under its own identity. Also identify the owner responsible for the identity, how its credentials are scoped and maintained, and how access is revoked when the agent, workflow, or owner is no longer approved.
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This is an active design area, not a settled universal standard. A NIST National Cybersecurity Center of Excellence concept paper released February 5, 2026, raises open questions about binding agent identity to human identity and proving an agent’s authority for a particular action. It describes a project concept, not a finalized agent-identity standard. Read the NIST NCCoE concept paper.
Dynamics 365 Finance and Operations example
Microsoft documents one specific implementation: requests to its Dynamics 365 Finance and Operations MCP server require an authenticated user. A delegated agent uses the chatting user’s identity; an autonomous agent uses its own identity, and application permissions follow that authenticated identity. Microsoft states, “The MCP server doesn’t elevate privilege.” These details describe Microsoft’s documented MCP path; do not assume another ERP connector uses the same identity model. Microsoft Learn: Security for Dynamics 365 ERP MCP – Finance & Operations.
3. Enforce least privilege in the connector and the ERP
Least privilege has two layers: the tools exposed to the agent and the permissions held by the identity those tools use. Limit both. Where suitable, use a distinct integration identity, restrict its scopes and accessible records, and prefer read-only access when it can complete the task.
Do not rely on the model to decide whether a requested operation is allowed. OWASP’s recommendation is direct: “Implement authorization in downstream systems rather than relying on an LLM to decide if an action is allowed or not.” The ERP or a trusted execution layer should check each request against access policy and business rules, including when the request originates from an agent. See OWASP LLM06:2025 and the OWASP AI Agent Security Cheat Sheet.
For its Dynamics MCP implementation, Microsoft says requests are subject to the application’s roles, duties, privileges, record-level security, and data policies, and use supported APIs rather than direct database access. Microsoft also states that “A transaction that would be rejected in the application client is also rejected when attempted through the MCP server.” Ask other vendors to explain their own enforcement path rather than projecting this example onto them. Microsoft Learn documentation.
4. Set approval boundaries for consequential actions
Decide which actions your organization considers high impact, irreversible, or difficult to recover from, and require meaningful human approval before those actions proceed. Depending on the workflow and risk assessment, candidates might include posting a journal, initiating a payment, changing vendor or bank details, bulk-updating records, changing access, or deleting financial data. These are policy examples, not universal requirements.
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An approval should show the reviewer the proposed operation and its target clearly enough to judge what will change. Confirm that the approval is enforced by the execution path, rather than being a request the agent can ignore or bypass. OWASP recommends human approval for high-impact actions in its AI Agent Security Cheat Sheet and LLM06:2025 guidance.
Approval frequency also matters. NIST warns that repeated prompts can create consent fatigue, making people more likely to click through without meaningful review. Use risk-based thresholds: avoid burdening reviewers with routine low-risk steps, while keeping consequential actions visible and deliberate. NIST Cybersecurity Insights.
5. Treat business content as untrusted input
An agent may encounter instructions embedded in emails, invoices, attachments, documents, or ERP records. Such content can attempt to redirect its behavior, including through direct or indirect prompt injection. Treat it as data to assess, not as an authority to change the agent’s instructions or permissions.
Limit what the agent can do even if an injected instruction influences it, and ensure each resulting operation still passes downstream authorization and business validation. Test with adversarial content relevant to the actual workflow. NIST’s July 2024 AI 600-1 Generative AI Profile recommends red-teaming for prompt injection and regularly assessing whether controls remain effective; OWASP also describes these risks in its AI Agent Security Cheat Sheet.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.6. Map data movement, retention, and external tools
Trace what happens to ERP data beyond the connector. Include the agent client and runtime, model service, logs, memory, analytics, and any secondary tools or integrations. For each destination, establish what data it can receive, whether it can export or transmit that data, how long it is retained, and which data-governance controls apply.
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Map the deployment to the obligations that apply to your jurisdiction, industry, data, and system. For context, NIST SP 800-171 Rev. 3 concerns Controlled Unclassified Information in nonfederal systems; it is not automatically a requirement for every accounting deployment. Federal banking agencies’ 2021 authentication and access guidance is scoped to financial institutions, not every business. Consult the applicable requirements for your environment rather than treating either source as a universal mandate: NIST SP 800-171 Rev. 3 and the interagency guidance.
7. Preserve an attributable audit trail
Confirm that the available logs let your team reconstruct what happened and investigate an unexpected change. To the extent the system supports them, record the agent identity, human owner or initiating user, task or run identifier, operation, target, authorization decision, approval, timestamp, and result. Protect the records from unauthorized alteration and make sure relevant staff can investigate unusual activity.
The exact fields and retention period depend on the environment. NIST NCCoE identifies tamper-proof logging and non-repudiation as challenges for agent identity and authorization; banking guidance notes that transaction and audit logs support investigation and accountability within its financial-institution scope. These are control considerations, not a single prescribed logging schema. NIST NCCoE concept paper and interagency guidance.
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8. Verify the implementation and rehearse failure cases
Get specific answers from the ERP vendor and agent provider. Compare integration options on the evidence they can provide, not a general label such as “AI-ready.”
| Evaluation area | What to verify |
|---|---|
| Identity | Whether access is delegated, autonomous, or shared; how an owner is assigned; and how credentials and access are revoked. |
| Authorization | How tool and action scopes map to ERP roles and records, whether read and write access can be separated, and where each request is checked. |
| Business rules | Whether the integration uses supported APIs, preserves validations and workflows, and avoids direct database access. |
| Human control | Which actions require approval, what the reviewer sees, and whether enforcement prevents bypass. |
| Data handling | What the connector, client, model service, external tools, and logs store or retain, and where data can be sent. |
| Audit and response | Which events are recorded, whether actions can be attributed and reconstructed, how unusual activity is monitored, and how access is revoked. |
Before production, exercise the workflow in a non-production environment. Test denied permissions, expired and revoked identities, injected content, attempts to bypass approvals, duplicate requests, and logging failures. Check whether the system fails safely, creates the expected audit evidence, and allows your team to respond. NIST AI 600-1 recommends security evaluation, red-teaming, and recurring checks; see the NIST Generative AI Profile.
Connect the agent only when its authority is bounded, its enforcement and data paths are understood, and the organization can verify and investigate its actions. The particular approval thresholds, retention choices, and compliance obligations must be set for the workflow and jurisdiction.
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