Many enterprises often miss one key piece of the puzzle: supply chain risks.
Even with the advanced technology that supply chain companies use, global supply chains are constantly exposed to various kinds of risk. One such major threat that companies are now facing comes from cyber attackers. So how do manufacturers implement measures to mitigate supply chain risk? Joshua Skeens, COO at Logically, shares insights.
Cybersecurity threats have continued to mount in the United States as the pandemic prompted us to shift our secure data online. In fact, the FBI reports that since the start of COVID-19 in 2020, cybercrime has skyrocketed by 300%.
As a result, many organizations have responded by tightening their cybersecurity defenses. However, many enterprises often miss one key piece of the puzzle: supply chain risks. Specifically, hackers can gain access to your organization through weak security links by vendors in your supply chain. So even if your organization has all the right safeguards in place, you could still be at risk.
Gartner finds that 89% of companies experienced a supplier risk event in the past five years. With this unfortunate situation in mind, there are key supply chain risks you need to know about in order to best protect your organization, including:
1. Data security
Even if you have tight security protocols, hackers know they can leverage your vendors to get access to your data. Through some pretty simple research online, cybercriminals can determine what vendors your business is associated with and use these vendors as entry points into your organization. Through this process, they can access either your data or any sensitive data you have shared with the vendor.
2. Technology integration
Many businesses are now rapidly accelerating their digital innovation, often by integrating technology provided by a third party. Each time your business adds more hardware or software, you’re also adding more potential entry points into your businesses that hackers and cybercriminals can exploit.
3. Vendor fraud
Just as introducing new software and hardware into your organization poses a risk, adding new third-party vendors can also pose risks. One of the most common schemes cyber criminals employ has to do with payment processing; every time your business leverages a new third-party vendor, hackers can use social engineering to convince businesses to change their payment information. The result? You may think you’re making payments to your vendor, but really you’re paying a hacker. This not only erodes your security but can also harm your business relationships.
See More: How To Improve CX in the Supply Chain Crisis Era
Any time you consider bringing a new third-party vendor into your organization, you likely go through a very thorough vetting process. But are questions about cyber security mitigation tactics on your list? They should be. These questions can help you assess and grade their preparedness for any type of malicious attack:
1. What type of EDR or MDR are they running?
Endpoint detection and response (EDR) is a layered approach to endpoint protection. It combines real-time continuous monitoring and endpoint data analytics with rule-based and automated responses. Managed detection and response (MDR) combines technology and human expertise to perform threat-hunting tasks automatically. Ideally, vendors would be including both EDR and MDR techniques in their cyber security toolkits.
2. When were their last risk and vulnerability assessments?
Organizations should ideally be scanning their internal and external systems monthly – or quarterly at the least. These performances should include risk and vulnerability assessments and penetration tests to ensure the full swath of possible entry points is covered and difficult to exploit.
3. How large is their current security staff?
Responsiveness and readiness partially depend on how many people are on staff, managing threat assessments, and staying abreast of the current state of cyber security in your sector.
4. What do they leverage for multi-factor authentication?
Multi-factor authentication (MFA) is an essential security tool within many organizations, and the way it’s implemented will be incredibly telling of how vendors are prepared to respond to attacks.
Do they have cybersecurity insurance? The answer to this question will allow you to better understand the prerequisites they must meet to obtain their insurance. This alone will tell you a lot about how they will choose to respond to any threats against their organization – or yours!
See More: Address and Improve Supply Chain Resilience With Technology
As you read the above list, you’re probably wondering how your current third-party vendors stack up in terms of cyber security. There are a few simple steps you can take today to ensure they’re maintaining quality security practices:
Of course, no single tool can solve all the problems with leveraging vendors or ensuring your company is protected against hackers and cybercriminals. That said, these steps can reduce the risk of a hack or a breach. Remember to ask questions, require annual cyber security audits, penetration tests and vulnerability assessments, and don’t be afraid to continually look hard at each of your existing vendors in order to ensure the integrity of your business and your supply chain.
How are you protecting the integrity of your supply chain? Let us know on Facebook, Twitter, and LinkedIn.
Image Source: Shutterstock
COO, Logically
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