The Importance of Data Security in Your Business's Supply ChaiN
The world is witnessing a surge in cyber-attacks, with businesses across sectors falling prey to these digital threats. Two recent incidents that made headlines are the Capita and MOVEit attacks.
In the Capita attack, hackers exploited what the BBC called, ‘a pool’ of unsecured data. Capita estimate that they will need to spend between £15-£20 million pounds to recover and secure their systems going forwards.
So far 90 organisations, including NHS England have reported data breaches to the Information Commissioner’s Office because of this attack.
The MOVEit attack, on the other hand, saw cybercriminals allegedly steal tens of thousands of UK workers' details, via a flaw in the popular file transfer tool. British Airways, Boots, and the BBC have been confirmed as victims of this attack, with more expected.
Both attacks have come via Russian-backed criminal enterprises. The Capita breach has been claimed by Black Basta, one of the most prolific ransomware operators in the world. The MOVEit breach has been claimed by Cl0p.
These incidents have not only resulted in significant financial losses but also caused severe reputational damage to the affected companies.
The Importance of Data Security
In light of these events, the importance of data security in business operations, particularly in the supply chain, is growing.
With the increasing interconnectivity of systems and the growing reliance on third-party suppliers, businesses are more vulnerable than ever to cyber threats.
A breach in any part of the supply chain can compromise the entire network, leading to significant operational disruptions and financial losses.
Identifying Secure Data Handlers: Key Accreditations
When engaging with suppliers, it is crucial to ensure that they are reliable and secure data handlers. Two key accreditations can provide assurance in this regard: Cyber Essentials Accreditation and ISO27001.
Cyber Essentials Accreditation:
Cyber Essentials Accreditation is a certification provided by the UK Government to demonstrate that an organization has met certain basic cyber security standards. It provides assurance to customers and other stakeholders that appropriate measures have been taken to protect against common online threats.
The National Centre for Cyber Security advises that all suppliers should be Cyber Essentials accredited.
ISO27001:
ISO27001 is an international standard for information security management that provides a framework for organizations to manage risks associated with the use, processing, storage, and exchange of information.
This accreditation is important as it signifies that a supplier has robust systems and processes in place to safeguard data, thereby reducing the risk of a security breach.
Assessing Supplier Security
Conducting a supplier security assessment is a critical step in ensuring the integrity of your supply chain. Here are some steps to guide you through this process:
Identify Critical Supplier Risks: Start by focusing on the most significant risks to your operations. This could include operational risks, such as delayed orders or damaged goods.
Create Supplier Risk Assessment Questions: Develop a list of questions to help identify potential risks associated with working with a particular supplier. These questions could relate to the supplier's financial stability, reputation, history of quality or delivery issues, compliance with regulations, and more.
Use a Supplier Risk Assessment Matrix: This tool can be used to rate suppliers on various factors, such as financial stability, quality of products or services, delivery reliability, and customer satisfaction. This allows you to evaluate threats according to probability and impact.
Plan Your Course of Action: Based on the assessment results, you should have a clear understanding of which suppliers pose the greatest risk to your organization. Use this information to make informed decisions about which suppliers to work with and how to mitigate the risks they pose.
Data security in the supply chain is a critical aspect of business operations in today's digital age. By ensuring that your suppliers are secure data handlers and by regularly assessing supplier security, you can protect your business from potential losses and ensure the integrity of your supply chain.