Protecting Your Supply Network from Cyber Risk

How can you manage cyber risk in your supply chain? We present six common issues, along with actions you can take to monitor, identify, assess and mitigate supply chain cyber risk.

Data Risk Report

According to The Global Risks Report 2020 by the World Economic Forum, cyber-related issues such as cyberattacks, data fraud or theft are among the top risks to corporations: “More and more firms operate in global and digital service ecosystems that not only expose them to their own cyber and technological weaknesses, but also to those of other participants — including customers, suppliers and managed system providers.” Such weaknesses can arise, for example, when companies in your supply network do not have a strong focus on managing cyber risk. When threat actors attack, the consequences for enterprises can be enormous. In addition to direct revenue and profit loss, sensitive data or intellectual property could be stolen or compromised. The “long tail” can include customer compensation payments, production shortfalls or even shutdowns. So, what can you do? We present six issues, along with actions you can take to monitor, identify, assess and mitigate supply chain cyber risk.

Issue 1: Digital transformation increases vulnerability to cyber threats

Digital Transformation

Complex global ecosystems are vulnerable to cybersecurity risks from criminals or hackers — and digitalization is increasing the attack surface. For example, in manufacturing, you might employ Industry 4.0 and 3D printing. In procurement, supply chain processes such as enterprise resource management are IT-based, and you possibly use integrated online portals to collaborate with suppliers.

Ask yourself: Do I know which of my IT-systems my suppliers and vendors can access?

Solution: Protect your business and your supply network from cyber risk. Make cybersecurity and supply chain risk management a priority. The riskmethods Solution™ helps you identify, assess and mitigate cyber risk in your supply chain so you can be risk aware, react faster, and be proactive.

  • Stay on top of the cyber risk in your supply chain. Understand the impact, so you can set the right priorities.
  • Reveal and remove cyber threats and vulnerabilities in your supply network so you can efficiently reduce cyber risk.

Issue 2: Lack of supply chain transparency

Cybersecurity risk often emerges from sub-tier suppliers that have insufficient resources or knowledge to protect their networks, or they simply place a low priority on cybersecurity management. They might also lack transparency on the cybersecurity of their suppliers, vendors and other third parties. 

Ask yourself: How much do I know about the cybersecurity of my sub-tier suppliers?

Solution: Increase your risk awareness by getting a complete picture of your supply network.

Digitize your supply chain on an interactive world map with to understand at a glance where your suppliers are, and how they are interconnected. We uncover cyber threats to your supply network and provide you with objective risk data. Managing cyber threats becomes a whole lot easier.

  • Understand your cyber risk exposure: Instantly available risk scorecards provide you holistic risk profiles along with cybersecurity indicators. 
  • Uncover predictive patterns: With intuitive analytics tools, you get superior insights into cyber risk trends and vulnerabilities.
  • Don’t miss a thing with riskmethods Risk Intelligence™ real-time risk monitoring.

Issue 3: Lag in response time following incidents

Lag in response time following incidents

Data breaches can take months (280 days on average) for enterprises to identify and contain, according to a 2020 survey by IBM and Ponemon Institute. And imagine how much longer it could take to learn of an incident or breach in your suppliers’ systems.

Ask yourself: How can I find out about cyber incidents in my supply network? And do I know how to respond?

Solution: React faster with our artificial intelligence-based risk detection, early warning signals, and continuity plans. With the The riskmethods Solution you find out immediately if cyber incidents hit your supply network. We provide ready-made plans so you can streamline actions within your enterprise and with your suppliers.

  • Accelerate threat detection and mitigation: Real-time incident monitoring saves you time and effort so you can be the first to respond to cyber threats.
  • React faster to any risk: A library of mitigation plans enables you to coordinate your team's actions in one central tool when mitigating cyber risk. Everybody knows exactly what to do.

Issue 4: Insufficient preparedness for cyberattacks

When suppliers have access to your organization’s systems, they can unknowingly open the window to criminals. Threat actors increasingly use “island hopping,” which is attacking the system with the weakest cybersecurity, to gain access to supply chain networks. Take steps to reduce the impact that any cyberattack might have on your business.

Ask yourself: What strategies do I have to prevent data breaches in my supply network?

Solution: Be proactive. Move your cyber risk strategy beyond reaction towards prevention. The riskmethods Solution gives you the complete picture of how a potential cyber threat could impact your organization. With instant risk evaluation for every risk object (such as suppliers, customers, transport hubs), you can proactively set the right risk management priorities and take the right actions to prevent breaches.

  • Uncover vulnerabilities and reveal hidden risk in your supply network by knowing your (sub-tier) suppliers, their cyber risk, and their impact on your business.
  • Insist on robust cyber risk practices by your suppliers and take the right initiatives to reduce risk.
  • Make sound business decisions: Cybersecurity risk scores can be easily compared, so you can include them in supplier onboarding.

Issue 5: Strict compliance requirements and regulations

Regulators recognize the need to protect the economy and commerce from illegal cyber activities. Companies must comply with a rising number of regulations and perform audits to ensure that they meet cybersecurity standards. Failure to adhere to data protection legislation when reporting cyberattacks can lead to fines running into the millions. Here the cybersecurity policies of your suppliers and vendors are crucial as well.

Ask yourself: Do my vendor and supplier evaluations include cybersecurity?

Solution: Assess the cybersecurity practices at your business partners. The riskmethods Solution is your central authority for managing cyber risk in your supply chain. We continuously monitor cyber risk in your supply network. And you can seamlessly integrate additional specialized cyber risk intelligence, for example from our partners BitSight Security Ratings or IntegrityNext.

  • Accelerate audits by having all your cyber risk data ready at hand with our easy-to-use reporting and analytics tools.
  • Strengthen customer relationships and drive new business by proving that you meet cybersecurity requirements.
  • Ensure your suppliers adhere to cyber security regulations: Integrate supplier assessments and get notified instantly of any compliance violations

Issue 6: Complex reporting to stakeholders

Reporting to Stakeholders

Increasingly, cybersecurity is an executive issue, and chief information security officers (CISOs) must report on their performance to the board of directors. Yet a NASDAQ survey says that 91% of board members cannot interpret cybersecurity reports. At the same time, producing cyber risk and security reports is complex and time consuming.

Ask yourself: How can I reduce my cybersecurity reporting efforts?

Solution: Accelerate your cyber risk reporting by using intuitive reports and analytics tools With The riskmethods Solution you can treat cyber risk like other areas of supply chain risk. We help you assess the risk of your business partners with a standardized and intuitive risk score from 0 (no risk) to 100 (high risk) so that everybody can easily understand your risk exposure. And we process the vast amount of data for you — to make risk reporting a breeze.

  • Save time with easy-to-use analytics tools that allow you to instantly export data. Create data analyses, charts, and graphs with just a few clicks.
  • Earn the trust of investors, business partners, employees and customers with advanced supply chain risk management and cybersecurity monitoring

Managing Cyber Risk in Your Supply Network

The weakest link in your cybersecurity could be in your supply base. Are your suppliers putting you at risk? Learn more in this whitepaper:
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