In today’s interconnected world, the reliance on supply chains is more important than ever. These networks provide the connective tissue that facilitates global trade and prosperity. However, with the increasing complexity and opaqueness of these chains, there is a growing concern over the security of these interconnected companies that supply software and digital services. This puts these chains at risk from disruption and compromise, making it imperative for businesses to take control of their supplier risk management.
When it comes to understanding supply chain risk, it’s important to recognize the various forms it could take, from ransomware and data theft to denial of service (DDoS) and fraud. These risks can impact traditional suppliers such as professional services firms and vendors of business software, as well as managed service providers (MSPs). Recent research has shown that a staggering 90% of MSPs suffered a cyberattack in the previous 18 months, highlighting the severity of the threat.
As cybercriminals become more audacious, they have found ways to compromise software developers and insert malware into code that is delivered to downstream customers. This was evident in the Kaseya ransomware campaign and the recent compromise of the MOVEit file transfer software, impacting millions of customers. Additionally, threat actors have begun exploiting vulnerabilities in open source components, inserting malware and exploiting unpatched code, as seen with the Log4j bug. Furthermore, attackers may impersonate suppliers for fraud, steal credentials, or engage in data theft, putting clients’ sensitive information at risk.
To effectively assess and mitigate supplier risk, businesses need to adopt industry best practices. This includes conducting due diligence on new suppliers, managing open source risks, conducting regular risk reviews of all suppliers, establishing a formal policy for suppliers, managing supplier access risks, and developing an incident response plan. Additionally, implementing industry standards such as ISO 27001 and ISO 28000 can provide valuable frameworks for managing supplier risk.
It is clear that businesses can no longer afford to blindly trust their partners and suppliers on their cybersecurity posture. The grim reality is that supply chain attacks are on the rise, resulting in breaches impacting millions of individuals. Therefore, it is essential for businesses to take proactive steps to manage these risks effectively. By doing so, they can mitigate financial and reputational damage, reduce the risk of operational outages, and protect their customers from the repercussions of supply chain cyberattacks. Ultimately, a more effective approach to supplier risk management is crucial for safeguarding the security of the overall supply chain.