Supply chains are large, complex networks of interconnected systems, processes, and people that facilitate the flow of goods, services, and information from their source to end-user destinations. Across supply chains, various processes such as sourcing, production, logistics, warehousing, and delivery are seamlessly orchestrated to meet consumer demands efficiently.
As our supply chains become more complex, such as with geopolitical impacts, customs changes, and the integration of IoT within the move to Industry and Supply Chain 4.0, securing them is critical. Supply Chain 4.0 integrates manufacturing and communications technologies to increase production through automation and proactive context awareness of customer needs and requirements.
Leveraging Intelligence and Risk Management for Supply Chain Integrity
There are many different approaches to defining cyber risks that arise from supply chains. Research has shown that increased cyber threat intelligence would allow more automation of cyber threat identification and a more immediate understanding of impacts that can compromise the various stages within a supply chain [A New Threat Intelligence Scheme for Safeguarding Industry 4.0 Systems]. Increased access to information and transparency in the supply chain can increase knowledge and responsiveness to volatility within related supply chain networks.
Risk management is an integral component within the security ecosystem as it allows organisations to identify, assess and mitigate potential cyber security threats effectively, minimising the risks that heavily disrupt our critical supply chains. Gartner reports that by 2025, 60% of supply chain organisations will use cyber security risk as a significant determinant in how organisations interact and transact with third-party entities in digital supply chains. However, many of these organisations will rely on traditional forms of assessing third-party risk, such as paper-based questionnaires, which are inefficient and require high assurance from external vendors. Costs and the efficacy of core decision-making processes can be further reduced using industry cloud platforms.
By implementing robust and regularly reviewed risk management processes, such as using industry-leading cloud platforms or managed third-party risk management services, costs can be further reduced, and the efficacy of core decision-making processes will increase. Furthermore, organisations can systematically analyse the security posture of suppliers across the entire supply chain network and assess the potential impact of cyber threats – particularly for any single point of failure. Many supply chain entities often have access to sensitive data and systems, making them potential targets for cyber attacks such as ransomware. In addition, identifying and remediating any vulnerabilities in core systems across organisations in the supply chain can help pinpoint weak links that can be made robust before adversaries can exploit them.
Conclusion
A core element of securing the supply chain from a risk management point of view is to ensure that issues of uncertainty or vulnerability throughout the entire network, which can potentially disrupt business continuity, should be covered as a foundation from end-to-end across all third-party entities. By thoroughly vetting suppliers, such as through Third-Party Risk Management (TPRM) systems, organisations can make truly informed decisions about the level of risks their suppliers pose to them and to the rest of the supply chain, which will not only help them make better-informed decisions about whom they partner with, but also to implement appropriate risk management and mitigation strategies, such as strong contractual agreements, security audits, and continuous monitoring. By being proactive, organisations that share a supply chain can prioritise resources and implement appropriate security controls to mitigate risks to their businesses and the supply chain ecosystem on which many of them rely to function.
In today’s global business landscape, ensuring the security of your supply chain Is strategic for achieving enduring success. Contact our expert consultants today to fortify your company’s operational resilience and secure your path to long-term prosperity.
