Best Practices In Cyber Supply Chain Risk Management

Many organisations are adapting to accommodate modern technology, but becoming up-to-date and embarking on the much-used term “digital transformation”, comes with its own set of challenges.  

A supply chain concerns people, technology, and processes used to send services or goods between groups. The internet plays a crucial role in digital supply chains, as it supplies access to goods and services required for routine business tasks. However, this reliance on interconnected systems also introduces significant cyber risks. 

A Blackberry commissioned 2024 study found that nearly three-quarters of software supply chains were exposed to cyberattacks in the last year, while the attacks themselves are having increased financial consequences compared to two years ago.

Other issues can occur as a result of cyber supply chain attacks, like a complete shutdown of company operations, reputation damage, or data loss. 

With the threat of cyber attacks targeting supply chains ever-present, businesses need to take steps to safeguard their supply chain, through an extensive Cyber Supply Chain Risk Management strategy (C-SCRM).

We’ll outline some of the best practices in cyber supply chain risk management below, which can help organisations minimise security weaknesses, protect their assets, and maintain continuous operations. 

What Is Cyber Supply Chain Risk Management?

The NIST defines Cyber Supply Chain Risk Management (C-SCRM) as a ‘systematic process for managing exposure to cybersecurity risks throughout the supply chain and developing appropriate response strategies, policies and procedures. 

So, what does this mean?

Essentially, Cyber Supply Chain Risk Management involves identifying and addressing risks that can emerge from supply chain vulnerabilities, including software vendors, service providers, and third-party suppliers. 

This includes ensuring that all entities involved in delivering goods or services to an organisation follow robust cyber security practices to prevent data loss, security breaches, or additional disruptions. 

Through establishing robust response strategies, Cyber Supply Chain Risk Management helps organisations build resilience against cyber threats across a complete supply chain. 

Best Practices In Cyber Supply Chain Risk Management

Now that you know what C-SCRM is, let’s look at the best practices in Cyber Supply Chain Risk Management. 

1. Carry Out A Supply Chain Risk Appraisal

Start by mapping out all areas of your organisation’s digital supply chain. This should include all platforms, services, and applications. This first phase is crucial to identify security weaknesses across a supply chain.  

Next, you should assess the cyber security posture of your organisation’s third-party suppliers, vendors, and partners. This involves evaluating the sensitivity of the information and data that they can access, as well as the potential impact on your company if they experience a breach. Based on this information, appoint risk levels (high, medium, low) to each supplier, then implement explicit cyber security measures tailored to each risk category. 

Maintain constant communication with your suppliers concerning cyber security measures they are required to follow. Request action plans which outline how and when they will implement these security controls, then establish a process for tracking their compliance. 

2. Take Steps To Avoid Shadow IT

Shadow IT occurs when employees use unauthorised applications or software without approval from the IT department, increasing the organisation’s risk of security breaches. Each unsanctioned application widens the business’s attack surface, while security departments cannot address cyber threats they aren’t aware of. 

To combat this, consider adding a CASB (Cloud Access Security Broker) solution which detects unauthorised applications and enforces policies concerning software usage. CASBs can provide insights into user activity and data flows, helping to prevent unauthorised installations and keep your IT environment secure. 

Additionally, develop strict security policies which limit employees’ ability to install applications without proper vetting. Regularly communicate these policies to your workforce to raise awareness about the risks of shadow IT and the importance of compliance with IT protocols. 

3. Look At Patching Cadence

Patching cadence assesses the number of security weaknesses in your system and how many crucial vulnerabilities still need to be patched. This process includes the time required to add patches and software updates to your systems, software, and networks. 

Some software weaknesses that malicious actors take advantage of have been fixed by their vendors with security updates, but a significant number of data breaches result when businesses fail to update their systems. This may be to avoid interruptions to business operations, or if they have concerns about limited resources. 

To mitigate cyber risks, organisations should aim to add security patches within 30 days of the software’s release. Develop a patch management process to stay aware of which applications have known security weaknesses and when an update is released to fix the issue. 

A comprehensive digital supply chain risk management plan should also check that your partners follow robust patch management practices to safeguard your entire infrastructure. 

4. Consistently Monitor IT Infrastructure

Cyber threats are always developing, but the nature of modern supply chains requires more than occasional security assessments. Consistent monitoring is crucial to sustain visibility into new security risks as they emerge, particularly when dealing with an ever-changing array of technologies and third-party vendors. 

An extensive monitoring solution can deliver real-time insights into your IT infrastructure, identifying anomalies and potential threats before they can escalate. This helps reduce response times and ensures you are aware of emerging vulnerabilities, unauthorised access attempts, and changes in third-party risk levels. 

At Net Consulting, our Supply Chain Attack Surface Protection service continuously scans your infrastructure to detect vulnerabilities before they turn into security breaches. 

Contact us today to find out more. 

5. Create An Official Cyber Supply Chain Risk Management Program

Establishing a structured and documented C-SCRM program is essential to integrate all of your risk management strategies into a cohesive framework. 

Your supply chain management program should outline your organisation’s approach to managing supply chain risks, including the specific roles, procedures, and policies that you will use.

The important elements of a successful C-SCRM program include:

• Clearly defined roles and responsibilities for employees involved in risk and third-party management.
• Detailed security policies for third-party vendors and suppliers, as well as expectations for compliance.
• A roadmap for regular risk assessments, consistent monitoring, incident response, and patch management.
• Procedures for communicating with suppliers, tracking compliance, and addressing non-conformance with security protocols.

This program maintains consistency across an organisation’s supply chain risk management efforts and provides a reference for all participants involved in securing the supply chain. 

The Bottom Line

We hope that this post helped explain the best practices in cyber supply chain risk management.

Implementing these customs can help organisations better manage the increasing complexity of cyber risks in supply chains. 

Net Consulting specialises in providing supply chain protection solutions to help businesses proactively address their security vulnerabilities. 

Call us at +44(0)2920972020 or browse our Supply Chain Attack Surface Protection service to find out more.