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Understanding Supply Chain Risk in the Cybersecurity Landscape

Article

Publish Date:

9 April 2025

In today’s interconnected world, businesses rely on vast, complex supply chains to deliver products and services efficiently.
However, with these efficiencies come significant risks – especially in cybersecurity. Supply chain risk management has become a critical priority for organisations looking to protect their operations, data, and reputation.

Trustack MSP Cyber Security, IT Services, IT Support. A 3D word cloud centered around "Supply Chain" highlights key elements like "Understanding Risk" within the cybersecurity landscape. Surrounding words, including "distribution," "management," and "logistics," appear in shades of gray on a blue background, weaving risk awareness into traditional practices.

What is Supply Chain Risk?

Supply chain risk refers to potential problems  that can disrupt the movement of goods, services, or information in a supply network.
These risks can stem from natural disasters, geopolitical instability, financial failures, or cybersecurity threats. Supply chains are now prime targets for cybercriminals.

Why is the supply chain a cybersecurity risk

Cybercriminals are increasingly targeting supply chains because they often provide an indirect pathway into larger organisations. A report from IBM reveals that 62% of security experts indicate their organisation has faced a cyber-attack linked to their supply chain.

Moreover, according to the National Institute of Standards and Technology (NIST), there has been a rise of more than 430% in supply chain attacks over the last ten years.

These attacks can take various forms, including:

  • Third-party data breaches: A vendor or supplier with inadequate security measures can serve as the gateway for an attack on a larger corporation.

Software supply chain attacks: Cybercriminals hack software updates or source code to break into systems. This was seen in the famous SolarWinds attack.

  • Counterfeit or compromised hardware: Malicious actors insert vulnerabilities into hardware components before they even reach their intended users.

The Benefits of Supply Chain Risk Management

A proactive approach to supply chain risk management offers several benefits, including:

 

  • Enhanced Security Posture: Finding and reducing risks lowers the chances of cyber attacks and data breaches.
  • Regulatory Compliance: Many industries now need strong cybersecurity practices in their supply chains. This includes rules like GDPR, ISO, and NIST guidelines.
  • Operational Resilience: By checking and watching suppliers, businesses can avoid expensive problems.
  • Reputation Protection: Preventing supply chain breaches maintains  customer trust and protects brand integrity.

Key Strategies for Mitigating Supply Chain Cyber Risks

  1. Conduct Risk Assessments: Consistently assess vendors for cybersecurity threats and adherence to best practices.
  2. Implement Vendor Security Policies: Set explicit cybersecurity standards and demands for every third party.
  3. Use Zero Trust Architecture: Limit access privileges and verify all internal and external network activities.
  4. Monitor for Threats: Deploy real-time monitoring tools to detect and respond to potential supply chain threats.
  5. Enhance Employee Awareness: Educate employees on the risks associated with third-party vendors and how to identify potential threats.
Trustack MSP Cyber Security, IT Services, IT Support. An image of blue and white interlocking arrows labeled "Understanding Supply Chain Risk in the Cybersecurity Landscape" with a background of a bright blue sky and scattered clouds. The arrows point right, suggesting direction or progress in managing new risks.

The Cost of Inaction

Not dealing with supply chain risks can lead to serious problems.

The Ponemon Institute says that a supply chain data breach costs over $4.35 million on average. Furthermore, 77% of organisations believe that a significant attack on their supply chain would severely impact their business operations

Secure Your Supply Chain Today

The growing prevalence of cyber threats makes supply chain security an urgent priority. Organisations need to actively assess and manage their risks. This helps prevent costly disruptions and protects sensitive data. 

Is your business prepared for supply chain cyber threats? Contact us today to see how we can protect your supply chain. We can help keep your business running smoothly in a changing world.

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