Black Friday is the time of year that is bound to put stress on many businesses’ supply chains. With demand soaring for items across the board, supply chains have already come under pressure from the effects of the past two years, and these delays are becoming more evident every day. So what does this mean for your risk management?
Unfortunately, not all risks originate internally. As you know, risks can also arise from within your supply chain. With increased strain (American consumers spent $8.9 billion online during Black Friday 2021), comes increased focus on your business’s reputation and possible fast tracking vetting of alternative vendors in your supply chain to keep up with demand. But thorough vetting should not be sidestepped.
The Consequences Of Poor Supply Chain Risk Management On Black Friday Sales
Supply Chain Risk Management strategies that focus only on internal threats and ignore the supply chain fall short for 2 main reasons:
More threat opportunities
The threats that impact internal systems represent only a subset of all threats. But within your supply chain, attack vectors are far broader and numerous. You can’t always control the types of security exposures that your vendors or suppliers introduce to their products. And the last thing you want is this impacting your Black Friday sales.
Lack of efficiency
If supply chain risk management isn’t part and parcel of your broader risk management strategy, it’s hard to manage supply chain risks efficiently. If you protect against supply chain threats at all, it ends up being through one-off audits or action against isolated threats.
At one of the busiest times of year, time and efficiency take center stage and It’s much more efficient to monitor for and address all types of risks – internal and external – through centralized tools and processes.
Major Holidays Leave The Door Open For Major Attacks
Kaseya Attack Affecting the Supply Chain
Though initially thought to only affect 40 of its clients, it was further discovered that over 1,000 downstream companies were affected by this 4th July attack by Russian group, REvil. With over 40,000 organizations worldwide using at least one Kaseya software solution, the potential impact of this supply chain attack was massive. By exploiting zero day vulnerabilities in Kaseya’s software, it caused a major Swedish grocery store to completely shut for 24 hours as well as 11 schools in New Zealand.
Magento Magecart Attack Prevented in 2021
With millions of transactions being carried out over the Black Friday period, it’s no surprise that this is a key target for threat actor’s to leverage vulnerabilities in the supply chain. In fact the UK’s National Cyber Security Centre (NCSC) notified small businesses about the risk of magecart attacks on and around Black Friday last year. They’re unique because they exploit third party scripts on companies’ websites. Because highly critical services, like Adobe’s Magento, are trusted and there are not many services like them, these attacks can impact 1000s of sites simultaneously. When the NCSC notified these businesses over 4000 were at risk.
A Better Approach To Supply Chain Risk Management And Intelligence
How do businesses avoid those shortcomings this Black Friday? How can they implement risk management that addresses both internal and external threats?
The answer is to deploy risk management processes and tools that provide the following features:
- Continuous, real-time intelligence: Businesses need to know – immediately, before performance and security is affected – whenever a risk emerges within any internal or external asset.
- Complete supply chain risk management: It’s crucial to identify risks that exist at any point in the supply chain. This includes risks introduced not just by third-party vendors with whom you do business directly, but also “fourth-party” vendors, meaning those who supply your direct vendors. Risks can arise from these vendors, too.
- Automated, scalabile compliance: Checking for risks manually doesn’t scale (and takes away precious time, when time is a short commodity). Whether you have one vendor or one thousand, you need automation to ensure that you can detect all potential risks across all internal and external assets – and that nothing falls through the cracks.
- Centralized compliance: Risk management is inherently fragmented because risks come in many forms and affect many types of systems. Nonetheless, businesses should be able to manage all risks comprehensively using a platform that works across the enterprise. When you centralize risk management, you save time and maximize risk coverage.
The Findings Difference
With Findings, you are provided with an automated, comprehensive supply chain risk management solution that empowers businesses to manage supply chain risks proactively by getting ahead of issues before they happen. Instead of treating the supply chain as a black box from the perspective of compliance, leverage Findings to implement centralized, enterprise-wide supply chain risk management for both internal and external threats.
Don’t get caught out this Black Friday (or any day!). Get started at Findings.co.