Why You Need to Safeguard Your Supply Network from Cyber Risk

No matter how good your cybersecurity is, any device connected to the internet is a potential target of a cyberattack. Threat actors try to sneak into your digital systems and steal sensitive data such as bank account details or confidential company information. Millions of cyberattacks are launched against enterprises every day. And the threat continues to grow.

Unfortunately, supply networks are also increasingly vulnerable to cyberattacks. Why? Large entities may have fortified their infrastructure against attacks, yet in many cases, transparency and verification of business partners is lacking. That makes supply chains particularly attractive for potential attackers, who identify the organization within the supply chain with the weakest cybersecurity. In addition, digital transformation in supply chain management and procurement provide more opportunities for infiltration, and interconnected processes and operations offer an increasingly broad attack surface.

A recent Carbon Black report states that 50% of today’s cyberattacks use island-hopping – which is trying to infiltrate a company’s system through a partner network. Businesses are vulnerable when they:

  • do not have resources to protect their networks,
  • do not know how to manage the effort of reporting cyber risk to stakeholders,
  • simply put a low priority on cybersecurity.

Are such companies in your supply base? When enterprises do not have full visibility into the sub-tiers of their supply network, they put themselves at risk.

If threat actors are successful, the cost data breach can be severe – on average $3.86 million, according to a 2020 report by IBM and Ponemon Institute. Companies also face steep fines for non-compliance to data protection rules, along with bad publicity and customer loss.

Actions You Can Take to Manage Risk

Three basic principles for managing cyber risk in your supply network combine technology, strategy and policy:

  1. Be risk aware: Secure your IT-systems and educate your employees on data security and privacy laws. But also vet third parties specifically on their cybersecurity capabilities and efforts.
  2. React faster: Actively and continuously monitor your supply network so you can detect cyber threats in real time. Develop risk mitigation strategies, such as identifying alternative sources.
  3. Be proactive: Evaluate the impact of cyber risk in your supply chain. Get transparency on the cybersecurity of your suppliers and sub-tier suppliers. Have action plans in place in case cybercriminals strike.

Using real-time cyber risk monitoring as part of an advanced supply chain risk management with The riskmethods Solution, you also stay compliant with cybersecurity regulations and avoid fines. This helps you protect your reputation and earn the trust of investors, business partners, employees and customers.

For more, read our new whitepaper: Managing Cyber Risk in Your Supply Network

 

 



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