In an age where supply chain risks significantly impact business operations and data security, understanding and mitigating these risks becomes paramount. A recent IBM report, ‘Cost of a Data Breach 2022’, highlights that the average cost of a data breach stands at $4.35 million, with a substantial number of breaches linked to supply chain and third-party vulnerabilities.
Challenges in Supply Chain Security
Securing supply chains is increasingly challenging due to factors like remote workforce, complex supply chain structures, evolving security architectures, and digitalization. Four primary hurdles in securing supply chains include:
- Risk Identification: The complexity of ecosystems involving third-party vendors and multi-tier suppliers makes risk identification challenging.
- Infrastructure and Application Modernization: Tailoring cloud access and security for digital supply chains is crucial for handling data, orders, manufacturing, and cloud technologies.
- Limited Threat Intelligence: Aligning decision-making authority and budget with threat protection strategies is essential.
- Operational Resilience: The absence of centralized programs and staffing for supply chain management often leaves major vulnerabilities unchecked.
Cyber Risk Management: A Necessity in the Digital Age
Cyber risk management involves identifying, assessing, and mitigating cyber threats to an organization’s networks, systems, and data. This proactive approach is crucial for supply chains comprising various entities, where identifying responsibility during incidents can be complex.
Implementing Cyber Risk Management
Benefits of implementing cyber risk management include increased visibility into threats, quicker incident response, reduced breach risk, compliance with regulations, and enhanced customer trust. Key steps in implementing a cyber risk management plan involve:
- Keeping an inventory of all suppliers/vendors.
- Establishing tiering based on criticality.
- Assessing current cyber risk levels.
- Identifying potential threats and vulnerabilities.
- Developing a risk management strategy.
- Implementing policy and procedural frameworks.
- Training employees in cybersecurity best practices.
- Establishing a threat monitoring and response system.
Third-Party Due Diligence Best Practices
To ensure that third-party vendors uphold strong cybersecurity measures. Effective third-party due diligence includes verifying vendors’ security measures, response plans, and policies regarding cybersecurity threats.
Most organizations have an underdeveloped approach to third-party risk management, often reactive and fragmented. Moving towards a more defined, data-driven, and AI-optimized strategy is recommended for better security.
IBM Security Supply Chain Cyber Risk Management Services
IBM offers services to help organizations develop comprehensive strategies for identifying and mitigating security and regulatory risks in supply chains. To learn more about these services, interested parties can attend the upcoming webinar “How to Make Supply Chain Cybersecurity a Competitive Advantage,” or access further resources and consultation opportunities offered by IBM.
This article aims to provide insights and guidance for organizations seeking to bolster their supply chain security in the face of evolving cyber risks.
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