Supply Chain Cyber Risk

Managing Cyber Risk in Your Supply Chain
Cyber risks

What is Supply Chain Cyber Risk?

Supply chain cyber risk is the possibility that your business is harmed by your suppliers’ use of technology. This could be caused by malicious activity, but may also occur due to poor practices by your suppliers.

Cyber Risk Example: Maersk and Ransomware

In 2016 and 2017, there was a widespread ransomware attack that affected thousands of computers worldwide. The virus would make victims’ computers inaccessible, and then display a message explaining how they could pay in Bitcoin to get their data back.

The ransomware virus hit A.P. Moller Maersk, a container shipping company that manages about 18% of all container trade. The attack had immediate consequences: Maersk-run port terminals all over the world experienced massive disruptions in normal operations, such as the inability to receive containers, and Maersk customers didn’t know where any of their cargo was.

The cyber attack was among the biggest-ever disruptions to hit global shipping, and brought new attention to the topic of cyber risk in supply chains.

 3 Things To Know

1. Cyber Risk is About Supply Disruption

No one can argue that the use of information technology has increased exponentially in the last few years—from self-driving cars to Internet-enabled thermostats, it seems like everything we do involves a machine. The same is true of the supply chain—and that means that the risk of a disruption affecting your supply chain is only increasing.

2. Cyber Risk is Also About Managing Brand Image

Even if a cyber incident doesn’t directly affect your supply chain, it can affect your brand. News travels fast, and if one of your suppliers has been the victim of a cyber event, your own reputation may suffer the consequences.

3. Active Monitoring Is Crucial

A cyber incident can unfold rapidly—and its impact can be felt even more quickly. To stay on top of it all, it’s essential that you have a system that actively monitors all information outlets to identify events as quickly as possible.

Supply Chain Cyber Risk

In 2017, supply chain malware attacks increased by 200%. What is supply chain cyber risk, and why should you care? Find out in this whitepaper.
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