• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Cyber Security Solutions, Compliance, and Consulting Services - IT Security

We offer It security management, data, network, & Information security services for protecting information & mitigating security risks to your organization.

  • Home
  • About Us
  • Solutions & Services
    • Security Governance
    • NETWORK SECURITY
    • CLOUD SECURITY
  • COMPLIANCE
  • SECTORS
  • Blog
  • CONTACT

Tips for Supply Chain Risk Management

By Robert Roohparvar | At June 4, 2022

June 4, 2022

Tips for Supply Chain Risk Management

Cyber risk management is a rather challenging feat, even for the most experienced cybersecurity teams. Many day-to-day business functions depend on outsourcing to third-party companies to create a vast digital trail that ultimately requires cyber protection and monitoring. Therefore, relationship management is essential for managing cybersecurity risks in the supply chain or the vendor network. 

Growth in outsourced IT signals increased risk

The Software as a Service (SaaS) model has presented new cybersecurity challenges for businesses after witnessing a dramatic increase in growth. As per the Harvey Nash/KPMG 2018 CIO Survey, approximately 75% of the survey respondents reported a moderate or significant investment in cloud infrastructure. 

Critical business services, including finance, billing, human resources, enterprise resource planning (ERP), and customer relationship management (CRM), are already being outsourced by many businesses. Although convenient, outsourcing complicates vendor risk management by introducing networks that the business does not own. 

Therefore, in order to manage your vendor supply chain, it is critical to establish a vendor risk management program that integrates metrics for vendor performance. 

Shortage of experienced cybersecurity staff contributes to increased risk

Businesses require a team of qualified cybersecurity personnel to control information security. The supply of qualified individuals, however, has been unable to keep up with the demand, as noted by the National Institute of Standards and Technologies (NIST) in 2018. 

Moreover, the lack of cybersecurity staff predicts the widening of the current skill gap. The cybersecurity skill gap and the rising complexities of third-party partner companies enable vendor management to become a constantly evolving process.

Four vendor risk management best practices

1. Risk Assessment of Individual Vendors

Every vendor provides you with a unique service to enable your business. Categorize your vendors to determine the ones that pose the highest risk, depending on the systems and the information they can access. Vendors, however, come with third parties. Therefore, you must assess individual vendors as per their supply chain associated risk. 

2. Define Vendor Performance Metrics

If you are considering entering a long-term relationship with a vendor, you must define the key performance indicators (KPIs) that govern the relationship. Vendor IT’s are crucial since your vendor’s risks are directly related to you. Defining KPIs for product delivery is easy, unlike defining them for cybersecurity, which is complex. 

3. Create Clear Vendor Contracts

Define your risk tolerance in your contracts. Define metrics for terminating the relationship with the help of the KPIs you establish. If your vendor does not promise security after the contract signing, you must figure out a way that keeps you protected. 

4. Establish a Clear Line of Communication

It is critical to establish a clear line of communication down your supply chain. A fourth-party data breach may run your business to the ground and leave you responsible for any stolen customer information. 

Filed Under: Vendor security

Primary Sidebar

Archives

  • [+]Cloud security (17)
  • [+]Compliance (14)
  • [+]Cyber security news (101)
  • [+]Cyber security threats (258)
  • [+]Cyber security tips (239)
  • [+]E-Commerce cyber security (3)
  • [+]Enterprise cyber security (2)
  • [+]Financial organizations cyber security (2)
  • [+]General (22)
  • [+]Government cyber security (2)
  • [+]Healthcare cyber security (7)
  • [+]Law Firms Cyber Security (5)
  • [+]Network security (5)
  • [+]Newsletter (1)
  • [+]Ransomware (10)
  • [+]Risk assessment and management (5)
  • [+]Security management and governance (4)
  • [+]Supply Chain Attacks (2)
  • [+]System security (3)
  • [+]Uncategorized (14)
  • [—]Vendor security (10)
    • 6 Tips for Vendor Management Success in 2022
    • How to Alleviate Third Party Cyber Security Risks
    • Is Your Small Business Safe From Cyber Attacks?
    • Third-Party Vendor Assessment: Importance and Steps
    • Third-Party Vendors: A Company’s Achilles Heel
    • Tips for Supply Chain Risk Management
    • Vendor Due Diligence: Best Practices to Secure Your Supply Chain
    • Why We Need to Be Aware of the Rising Supply Chain Attacks
    • Why Your Business Must Have a Vendor Risk Management System
    • Why Your Must Secure Your Cyber-Physical Supply Chains

Footer

Infoguard Cyber Security

San Jose Office
333 W. Santa Clara Street
Suite 920
San Jose, CA 95113
Ph: (855) 444-6004

Irvine Office
19800 MacArthur Blvd.
Suite 300
Irvine, CA 92612

Recent Posts

  • Cybsersecurity in the Metaverse
  • How to Integrate AI into Your Cybersecurity Strategy
  • Cybersecurity Governance in the Age of Remote Work: Balancing Security and Productivity

Get Social

  • LinkedIn
  • Home
  • About Us
  • Solutions & Services
  • COMPLIANCE
  • SECTORS
  • Blog
  • CONTACT

Copyright © 2023