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Cyber Security Risks: The Next Supply Chain Due Diligence Focus

April 4, 2019

Cyber security risks in Supply Chain (specifically cyber attacks and data breaches) are the second leading causes of supply chain disruptions— outdone only by unplanned IT or telecommunications outages. As buyers and suppliers become more dependent on technologies, including mobile communication, cloud computing, robotics, and manufacturing digitalization for process efficiency, they are exposed to greater risks of Information Security (IS) breaches. IS breaches, even if only one partner is exposed, can cripple the operations of the supply chain and subject individual partners to class-action law-suits and long-term reputational impacts. Therefore, companies must address supply chain IS collaboratively with each of their partners.

With information being managed electronically, the number of threat-actors has substantially increased from malicious and irresponsible employees to nation-states and hacktivists seeking political and national security goals, making it imperative that companies go beyond internal threat-actors in their data loss prevention efforts.

It is up to companies to protect stakeholders’ data through Corporate Social Responsibility.

 

Download our new whitepaper to learn more on how IS is affecting the supply chain and how you can help mitigate those effects.

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