Written by Claire Greathead

8th March 2022

• ISO 27001

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A digital spring clean via third party risk assessments is a great way to ensure your organisation’s defences are up to scratch across your entire supply chain

Spring is a time traditionally associated with fresh starts and clearing out the clutter. In the same way you might contemplate a thorough tidy of your home now that winter’s over, you should be taking a fresh look at certain aspects of your organisation. And once you’ve finished getting your own house in order, the next step should be to turn your attention to your supply chain.

In recent years, we’ve seen many examples of data breaches suffered not because of internal errors or elaborate hacks, but as a result of supply chain weaknesses. Just this month, Toyota was forced to halt production and suspend its domestic factory operations due to a cyberattack which originated not with the brand itself, but with one of its suppliers.

As businesses become increasingly interconnected and interdependent – through the sharing of data, software and communications – following best practices for supply chain management becomes even more important.

What are the key supply chain requirements?

Every step of your supply chain requires effective management in order to ensure that your organisation is operating at full capacity and with security in mind. A well organised supply chain should meet certain requirements that are essential to helping your business run, including:

• Connectivity: the ability to exchange information across the supply chain with both ease and security, creating the right format for establishing inter-organisational collaboration
• Visibility: the ability to access the necessary data safely, in terms of its relevance and importance to the supply chain
• Responsiveness: the ability to react with speed and efficiency to customer needs, delivering the right product at the right time and for the right cost
• Integration: the ability to combine and coordinate separate functions so that they can interact with each other seamlessly and securely
• Data protection: the ability to identify data owners and data processors within business relationships and ensure that all data is handled and managed within the guidelines of the UK-GDPR

The importance of Supply Chain Management

Supply Chain Management, or SCM, is necessary in order to effectively manage the flow of assets and information throughout your supply chain. It includes the storage and movement of data, products and materials, taking each of these factors safely from source to consumer. SCM is useful for creating value to your organisation, building a competitive infrastructure that operates seamlessly. It can help you measure your performance more accurately and synchronise your supply with your demand in the long run.

SCM has a vital role to play in predicting and satisfying customer demand, delivering this back through to suppliers. It is also essential for accurately managing cost across the supply chain, and is pivotal in the efficient and effective management of all activities from primary suppliers all the way through to the point of sale.

Vetting your supply chain: third party risk assessments

By investing in third-party cyber risk management, you can mitigate third-party cyber risks while also boosting your business’s ability to recruit, manage and retain suppliers. The vetting process starts with identifying your vendors.

If you don’t have an inventory of your third-party suppliers, now is the time to create one. Begin with those who provide core supplies and move outwards to smaller vendors and support services. Any vendor, no matter their size or involvement, can be a risk to your cybersecurity.

Once you’ve identified your vendors, you should perform due diligence and take the time to assess the risk potential of working with them. Create a scoping risk questionnaire to capture vital information regarding the service being offered, the location and level of data being accessed, and other factors. As part of third party risk assessments, you can also determine whether or not your suppliers comply with key accreditations like ISO 27001.

From here, you can assess the level of the risks you’ve highlighted and address them in order of priority. Implementing controls like encryption, endpoint detection and multi-factor authentication can help to mitigate cyber risks in the long run.

Seeking supply chain cyber support

Increasingly, the team here at SRM are being asked to help audit, assess and monitor client supply chains. Our role as a third party is important because it enables us to ask the challenging questions of both our clients and their suppliers without causing friction in the relationship between the two parties.

In our role, we also provide an independent and objective view of your supply chain, providing confidence and reassurance that the suppliers you’re working with are resilient and value information security as much as you do.

An SRM risk assessment is a cost-effective and efficient service that can help you assess the risk profile of your suppliers – and isn’t a supplier audit a small price to pay for minimising the risk of a serious and damaging breach?

Find out more about our third party risk assessments by getting in touch with us today. Click here to contact our team.