Understanding Security Gaps in Dynamics 365 – SharePoint Integrations: A Practical Guide

For most organizations, Dynamics 365 and SharePoint are two of the most trusted pillars in their Microsoft stack. Dynamics 365 secures customer and operational data with granular, role-based controls, while SharePoint provides scalable document management at a fraction of CRM storage costs. Together, they should form a cohesive, secure environment.

But they don't.

There is a critical, structural security gap between these two systems, one that remains largely invisible to decision makers. Leaders assume that when documents are stored in SharePoint through Dynamics 365, the same permissions and access controls naturally follow.

They don't.

And this false assumption creates one of the most underestimated security risks in Microsoft enterprise environments today.

Consider this scenario: A sales representative leaves the company. Within hours, their Dynamics 365 access is revoked automatically. But the 200+ SharePoint folders they had access to through document locations? Still wide open. For months. Sometimes years.

The Comfort Illusion: Assuming Security Inheritance Works Across Systems

At the leadership level, the logic feels sound: both systems are Microsoft platforms, the integration is native, and the user is authenticated through Azure AD, so access must be aligned. Technically, however, the integration stops at storage offloading, not security alignment.

Dynamics 365 enforces security using row-level access, owner privileges, team memberships, and Business Unit hierarchies. SharePoint enforces security using site, library, folder, and group-based permissions. There is no out-of-the-box mechanism that maps these two models. The result is an architectural blind spot where documents stored in SharePoint are often more accessible than the CRM records they belong to.

Architecture Mismatch: The Root of the Problem

To understand why this assumption is fundamentally flawed, we must examine how these systems enforce security at their architectural core.

The risk isn't a configuration mistake; it's an unavoidable consequence of how the two systems are built.

Dynamics 365 Security Model

• Dynamic and highly contextual
• Driven by record ownership, BU hierarchy, and access teams
• Includes field-level security profiles and hierarchical security
• Changes frequently as teams evolve

SharePoint Security Model

• Static folder- and group-based
• Inheritance-based
• Requires manual updates to stay in sync

When a CRM user's role changes or when ownership of a record shifts, Dynamics updates privileges instantly. SharePoint does not. This structural incompatibility leads to long-term permission misalignment unless continuously managed.

Where This Risk Becomes Real: High-Impact Failure Points

Decision makers often only see the symptoms once a breach or audit discrepancy occurs. Below are the most common failure points seen across enterprises: