The supply chain is only as strong as its weakest link. For logistics companies operating in an evermore complicated cybersecurity and technological environment, this is third-party partners.
A recent report from Hexnode surveyed 1,000 IT professionals across small and mid-sized supply chain organizations and revealed a deeply concerning trend. Over half (52%) of the organizations encountered cybersecurity incidents stemming from third-party vendors on at least one occasion.
Threat actors are exploiting this weak link by striking trusted partners to infiltrate their true targets. As a result, hackers bypass traditional defenses and get in the back door to wreak some real damage – disrupting operations, compromising data, and damaging reputations.
Strong third-party risk management (TPRM) programs are the solution, yet the report alarmingly found that almost one in five (15%) businesses bypass this critical process altogether. Let’s explore how logistics operators can safely leverage the expertise of third-party partners while protecting themselves from what’s increasingly the supply chain’s ignored vulnerability.
Third-Party Risks Are Real
Supply chains are built upon intricate networks of relationships between organizations and their third-party service providers. However, malicious actors know this and are more often trying to infiltrate the target organization by exploiting a trusted component or software within the supply chain, thereby circumventing traditional security measures and catching victims off guard.
In the face of constantly evolving tactics, organizations must remain vigilant against threat actors. How? By giving far more budget and attention to the programs overseeing these third-party relationships.
In light of this threat, companies have no choice but to strengthen their TPRM programs. This requires analyzing the risks posed by working with outside services, engaging with vendors to assess their security posture, and remediating any identified weaknesses. And, if push comes to shove, companies need to delay deployment until the resulting security issues are addressed.
Risk tolerance, vendor criticality, and compliance requirements should then guide organizations on whether it’s safe to onboard the vendor or find alternative solutions. If companies decide to proceed with the partnership, it’s important to keep an eye on their security and compliance with regular checkups. After all, these partners now have access to internal systems and sensitive data to deliver their services (the exact information hackers are targeting).
Alarmingly, more than 15% of businesses bypass this process and don’t look into how or if partners protect data. This just isn’t good enough. In this day and age, with known risks and increasing cyberattacks, the buck stops with logistics companies. It’s up to them to define their third-party risk tolerance, ensure a reliable method for handling such risks, and create a system for continually assessing and monitoring the security of the partnership.
Be Proactive With Partners
Of course, this isn’t to say third-party platforms and partners are without value. They can be important external resources that take the pressure off internal teams with time-consuming or technical tasks. But, and it’s worth reporting, these partnerships should be entered into with a healthy dose of caution.
Therefore, logistics can no longer afford to treat third-party cybersecurity as an afterthought. Increasingly, it’s just as important as internal defenses. This demands investing in better internal and external security as well as better partner vetting. If companies aren’t up to standard, don’t take the risk. It’s that simple.
Additionally, train your staff with regular security seminars and workshops. Employees are the first line of defense and can be your eyes and ears on the ground. If there’s something wrong on the backend, or partner profiles are acting strangely, they can see and say something. Help them help you.
The takeaway here is to take matters into your own hands. Instead of waiting for clients or customers to discover breaches, supply chain companies today must arm themselves with the necessary tools and training to detect and respond immediately. Only by championing a holistic, vigilant approach can supply chain companies weed out poor partners and protect themselves from this underappreciated threat.
