In 2023, the aerospace giant Airbus fell victim to a major supply chain cyber attack. It served as a reminder that, no matter how large or small an organization is, securing the supply chain should be a cornerstone of business operations.
In 2023, roughly 138,000 customers around the world were affected by supply chain cyber attacks.
Supply chain networks are meant to work collaboratively as a well-oiled machine. As with any machine, every connection and element is crucial for function. Technology advancements have enabled supply chains to accelerate and work more efficiently than ever before. However, they have also introduced a litany of supply chain cybersecurity risks.
In 2023, roughly 138,000 customers around the world were affected by supply chain cyber attacks. That same year, in the US alone, 2,769 entities were impacted by supply chain cyber attacks.
It is no wonder, then, that 44% of organizations are expected to substantially increase year-on-year spending on cybersecurity for supply chains, according to a 2024 report by Gartner.
It is worth noting that cybersecurity in supply chain management extends beyond an IT concern. It encompasses risks associated with sourcing, managing vendors, ensuring supply chain continuity and quality, maintaining transportation security, and various other functions. Addressing these risks demands a coordinated effort across all aspects of the organization.
In this article, Silverse’s experts cover the types of supply chain cyber risks, and how to mitigate them.
To effectively manage supply chain cybersecurity risks, organizations must adopt a proactive approach to assess and identify potential vulnerabilities within their vendor network. This begins with conducting comprehensive risk assessments to evaluate the security posture of each vendor and understand the potential impact of their operations on your organization.
Organizations may face various supply chain cyber risks, from compromised proprietary software to data theft to impersonation of suppliers for fraud.
The most prominent vulnerability, however, lies in third-party relationships, which are considered the weakest cyber link in the supply chain.
Key challenges include the following:
Other key supply chain cybersecurity risks include:
Build Cybersecurity Awareness
Create or adopt an information security awareness initiative aimed at notifying employees about potential attack routes and typical attack methods within your supply chain.
Provide training to your teams on identifying secure vendors and spotting supplier vulnerabilities. Foster accountability by appointing a cybersecurity awareness leader within each team.
Establish a Formal Policy
This policy should delineate your expectations for minimizing supplier risk, encompassing any necessary SLAs. Therefore, it acts as a cornerstone, detailing expectations, standards, and protocols that suppliers must follow to safeguard the security of the entire supply chain.
Carry Out Due Diligence on New Suppliers
This entails verifying that their security program meets your standards and includes basic measures for threat protection, detection, and response.
For software suppliers, this assessment should also extend to determining whether they have a vulnerability management program in place and assessing their reputation regarding product quality.
Some relevant vendor assessment questions include:
Manage Open-Source Risks
This may involve employing software composition analysis (SCA) tools to gain insight into software components, conducting ongoing scans for vulnerabilities and malware, and promptly addressing any identified bugs through patching.
Additionally, ensure that developer teams grasp the significance of implementing security measures from the outset when creating products.
Maintain a comprehensive list of approved suppliers and regularly update it based on audit findings.
Conduct a Risk Review
This begins by identifying your suppliers and verifying if they have implemented basic security measures. Extend this scrutiny to their own supply chains. Conduct regular audits and ensure compliance with industry standards and regulations where applicable.
Maintain a comprehensive list of approved suppliers and regularly update it based on audit findings. Consistent auditing and updating of the supplier list empower organizations to perform thorough risk assessments, pinpoint potential vulnerabilities, and guarantee adherence to cybersecurity standards.
Manage Supplier Access Risks
Implement the principle of least privilege among suppliers if they require access to the corporate network. This approach can be integrated as part of a Zero Trust strategy, where all users and devices are treated as untrusted until verified, with continuous authentication and network monitoring providing an additional layer of risk mitigation.
Develop a comprehensive incident response plan. In the event of a worst-case scenario, ensure you have a well-rehearsed plan to contain the threat before it can impact the organization. This plan should also include procedures for coordinating with teams affiliated with your suppliers.
Provide Current, Relevant Information
People tend to disregard or overlook information that seems irrelevant.
Create scenarios showcasing the consequences of cyber attacks on different employee roles, the organization as a whole, and partners within the supply chain.
Keep your teams informed about emerging threat techniques and equip them with tools and knowledge to enhance their cybersecurity practices.
Train Employees
One simple mistake can lead to numerous crippling cyber attacks. It only requires one malicious email link or one malware download.
Emphasize to your users the criticality of login and password security in preventing cyber attacks and maintaining supply chain resilience. Educate and evaluate your employees to recognize phishing emails, secure their software and devices, and detect malware.
Practice Continuous Monitoring
Last but not least, regular monitoring is essential, because your business partners frequently alter their processes. Keeping watch on changes within your own business, your supply chain network, and regulatory and industry standards is challenging but imperative.
In numerous instances, relying solely on due diligence isn’t sufficient for cybersecurity. Consistent monitoring can mitigate the risk of cyberattacks and data breaches for both your organization and the third parties within its supply chain.
In an era of heightened cyber threats and supply chain vulnerabilities, organizations must prioritize the assessment and mitigation of risks within their vendor network to safeguard their operations and protect sensitive data.
By conducting thorough risk assessments, implementing robust mitigation strategies, and fostering collaborative partnerships with vendors, businesses can enhance their supply chain cybersecurity posture and mitigate the impact of potential cyberattacks.
However, supply chain cyber risk management can be time- and resource-intensive. In-house processes are not always possible.
Silverse offers comprehensive cybersecurity services, including strategy and consulting and managed security services. Contact us to speak to a cybersecurity consultant today.
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