Managing supply chain risk in an expanding threat landscape has become extremely complex, and events like the global pandemic and conflict in Ukraine have only exacerbated the issue. It has become necessary to go beyond a traditional risk management approach to understand supply chain risk.
What can you do to manage your supply chain risks effectively? Set up a third-party risk management program that includes assessing and managing the cyber risk from your vendors to improve the efficiencies and ensure better risk outcomes for your organization from your supply chain management program.
To develop an effective strategy, you must understand your supply chain risks and how to mitigate those risks. Some key supply chain risks to consider are cyberattacks, natural disasters, and supply chain disruptions.
When considering cyberattacks, it is critical to have a cyber risk management strategy in place. Think about catastrophic events like the SolarWinds breach and the Log4J vulnerability. Both events illustrate that cyber threats that impact nth parties can have a downstream effect on your business.. Your organization relies on your third, fourth and nth party vendors to do business, but that can also put your company’s sensitive data at risk. As part of your strategy, develop partnerships with your suppliers and understand the controls they have in place to mitigate cyber risk. You can then determine if your supplier’s cyber risk management strategies align with your standards.
Natural disasters are a supply chain risk that can impact multiple suppliers in a specific region. These disasters can have a global impact. You must develop a strategy to prepare for a natural disaster to minimize the disruption of your supply chain and the impact on your business. It’s important to understand not only the location of critical vendors and nth parties, but concentrations that may exist within a specific region.
Supply Chain Disruptions
Supply chain disruptions have become more common on a global scale. Covid, the Colonial Pipeline attack, and the conflict in Ukraine are just a few examples that have led to supply chain disruptions. Organizations can evaluate supply chain dependencies and identify regional dependencies to understand supply chain risk. This information can be beneficial to understand the risk level and how to mitigate those risks if an unforeseen event causes a supply chain disruption.
Watch our on-demand webinar “Monitor and Manage Your Supply Chain Risk” featuring Archer’s Wes Loeffler and RiskRecon/Mastercard’s Mark Nafe to learn what steps you can take to better manage your supply chain risk.
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