The Weak Link in the Chain: Managing Supply Chain Risk

Posted by John Price on Nov 7, 2019 10:10:06 AM
John Price

All businesses face potential risks. It is inevitable fact in any company and in any industry. Events that threaten businesses are ever present and can occur anywhere, at any time with little or no warning. That risk is especially evident in the supply chain. The supply chain can be detrimentally affected by weather, cyber-attacks, human error or sabotage, and so much more.

These risks can occur anywhere and at any time and are often responsible for a production halt, costing organizations’ and their partners millions of dollars.

While it is impossible to eliminate all risks from your supply chain, you can help minimize your potential exposure by planning for them. Proper supply chain risk management can save your company. An important aspect to supply chain risk management, is protecting against cyber-related disruption and better securing your information assets from loss, attributed to cyber security incidents.

With the emergence of new technologies both as a deliverable and within the supply chain, the manufacturing industry has never been at higher risk of cyber-attack.

Protect Your Supply Chain

Prior to launching a supply chain risk management program, an organization must do its due diligence on vendors they are using. If you don’t fully vet your suppliers in the chain, one small problem can disrupt the entirety of the chain.

Are your suppliers financially sound? Do they have reliable references and good reviews? Do they have subsidiaries or parent companies and are those companies in good financial standing? Have they ever been the victim of a cyber-attack or data breach? Once you answer these questions, you will know if your vendor can stay in your supply chain.

Set a framework upfront for all new vendors to meet to ensure they are low risk to your supply chain. A risk framework should have considerations for your organization’s mission, as well as the current regulatory environment. With the amount of cyber-attacks and threats on the rise, any supplier that does not have effective cybersecurity plans in place and tested regularly should be flagged as high risk.

Once you vet your suppliers and develop your framework, you are not done. You have to regularly check back in to make sure your suppliers are holding up their end of the bargain. As we experience an increase in data breaches, you must continually be aware of your suppliers risk. If they are breached, your company is at risk too because they are a part of your supply chain and could have access to your network. By utilizing an effective cybersecurity risk management program, you can easily run their risks and ensure they are up to par.

Does Your Company Have an Effective Plan?

Don’t let your company be unprepared. Your supply chain is at risk. Protect it by implementing a thorough supply chain risk management plan, complete with cyber-attack prevention. SubRosa Cyber Solutions specializes in both supply chain risk and risks posed by technologies used in manufacturing and can help your organization build and maintain its information security program to protect your supply chain from cyber-related disruption and better secure your information assets from loss, attributed to cybersecurity incidents.

Topics: Supply Chain Risk Management, Vendor Risk Management, Risk Management