Zero-Trust Architecture Adoption on Financial Data Privacy in Public-Sector ERP Environments

Abstract

The increasing dependence on Enterprise Resource Planning systems within public-sector institutions has intensified concerns regarding cybersecurity governance, financial data privacy, and protection of sensitive governmental information against evolving cyber threats. This study examined the influence of Zero-Trust Architecture adoption on financial data privacy performance within public-sector ERP environments. The study adopted a quantitative cross-sectional research design grounded in Zero-Trust Security Theory and Information Security Governance Theory. Data were collected from 312 cybersecurity professionals, ERP administrators, IT managers, compliance officers, and digital governance personnel working across ministries, treasury departments, taxation agencies, procurement authorities, municipal administrations, and pension management institutions utilizing ERP systems for financial management operations. Structured questionnaires measured identity governance implementation, multi-factor authentication usage, network segmentation practices, continuous monitoring technologies, access governance effectiveness, and financial data privacy performance. Data analysis was conducted using descriptive statistics, Pearson correlation analysis, and multiple regression analysis through the Statistical Package for the Social Sciences software. The findings demonstrated high implementation levels of multi-factor authentication systems (M = 4.35, SD = 0.58), identity governance frameworks (M = 4.28, SD = 0.63), and continuous monitoring technologies (M = 4.18, SD = 0.71) across participating institutions. Correlation analysis revealed strong positive relationships between identity governance frameworks and financial information confidentiality (r = 0.812, p < 0.01), while multi-factor authentication showed significant association with unauthorized access prevention capability (r = 0.825, p < 0.01). Multiple regression analysis further indicated that identity governance frameworks (β = 0.384, p = 0.000) and multi-factor authentication systems (β = 0.331, p = 0.000) significantly predicted financial data privacy performance within governmental ERP systems. The regression model explained 71.8% of the variance associated with financial data privacy outcomes (R² = 0.718). The findings established that Zero-Trust Architecture significantly strengthened ERP cybersecurity governance, improved institutional resilience, enhanced confidentiality protection, and reduced operational exposure to unauthorized access incidents affecting public-sector financial information systems.