When bad actors behind cyberattacks look for targets to carry out their acts, they often look for targets that appear weak. Among weaker targets are often supply chains, which have become a prime target for cybercriminals due to the inherent vulnerabilities within their networks. The lack of mature IT and security functions among suppliers, contractors and vendors makes them easy prey for malicious actors.
The gravity of this issue becomes even more evident when considering the following alarming statistics:
According to Gartner, an estimated 45% of global organizations will experience the detrimental effects of a supply chain cyberattack by 2025. The far-reaching consequences of such attacks emphasize the urgent need for enhanced security measures within supply chain networks.
A study by IBM revealed that a staggering 75% of organizations have fallen victim to ransomware attacks. Disturbingly, 64% of these targeted organizations opted to pay the ransom, hoping to regain control of their systems and data. However, even after paying, a disheartening 40% were unable to recover their valuable information.
The cyberattack on the Colonial Pipeline also serves as a reminder of the vulnerabilities within supply chains. By exploiting a single stolen password, a hacker crippled fuel supplies across the country, leading to widespread disruptions.
Such attacks can cause severe business interruptions, including data theft, system lockouts, and operational downtime, casting a dark shadow on the entire supply chain industry.
Moreover, the repercussions of supply chain cyberattacks go beyond immediate financial losses and operational challenges. They also pose a significant threat to a company's reputation. The public scrutiny and negative perception that follow high-profile attacks can tarnish an organization's image and erode consumer trust.
To avoid those repercussions, organizations need to gain visibility of cybersecurity within their supply chain. And Avetta, a provider of supply chain risk management software, is there to help with the launch of the Cyber Risk Solution, providing a quantitative score that evaluates cyber health in 10 areas and delivers an aggregate grade for each supplier.
This feature offers real-time visibility into the cyber health of a company's entire supply chain, enabling continuous monitoring and immediate alerts when risk scores exceed acceptable levels.
With the ability to identify potential vulnerabilities that may lead to cyberattacks, Avetta's Cyber Risk Solution plays a critical role in understanding overall supplier and contractor risk. For instance, suppliers with lower ratings are seven times more likely to fall victim to cybersecurity breaches compared to those with higher ratings.
While applicable to businesses of all sizes and industries, this feature is particularly relevant for companies heavily reliant on supply chains for their operations and deliveries. Industries such as power generation and utilities face heightened vulnerability, as any cyber incident could result in significant business interruptions impacting thousands (or even millions) of consumers.
Powered by SecurityScorecard, a security ratings and response company, Avetta's Cyber Risk Solution leverages their extensive insights on over 12 million organizations. SecurityScorecard's patented rating technology is trusted by more than 25,000 organizations for various risk management purposes, including third-party risk management, due diligence, and cyber insurance underwriting.
An additional notable aspect of Avetta's Cyber Risk Solution is the ability for clients to share suppliers' Cyber Health Scores with their respective suppliers. This facilitates a collaborative approach to address cyber gaps and implement mitigation and corrective action plans, ultimately reducing potential cyber threats within the supply chain.
“Suppliers and contractors are often an overlooked cybersecurity risk, but supply chain cyberattacks are increasing and can have devastating consequences,” said Taylor Allis, Avetta’s chief product and marketing officer. “Avetta's Cyber Risk Solution transforms the supply chain risk management landscape by offering a comprehensive way for businesses to constantly monitor all third parties for safety, financial health, ESG and now cybersecurity.”
By integrating Avetta's Cyber Risk Solution into their risk management practices, organizations gain a deeper understanding of their supply chain's cyber health, proactively respond to risks and fortify their cyber defenses.
Edited by Alex Passett