20. Feb. 2025

5 Key Steps to Mitigate Cyber Risks in Your Supply Chain

Since 2018, CyberVadis has partnered with major global organizations to assist in managing thousands of vendors connected to their systems or handling their data. Beyond assessing these vendors, it is crucial to track remediation efforts and work with internal stakeholders to effectively minimize risks. In this context, the following five steps have been identified as critical for mitigating cyber risks in the supply chain.

Table of Contents

  1. Identify all at-risk vendors: Empower end users
  2. Estimate vendor risk exposure: Centralize insights
  3. Engage high-risk vendors for deeper assessment
  4. Collaborate with vendors to drive improvements
  5. Establish a business-to-business feedback loop for meaningful impact

  1. Identify all at-risk vendors: Empower end users

    InfoSec teams cannot be responsible for identifying every vendor engaged by thousands of employees. Instead, employees must take ownership and follow a simple process to flag at-risk vendors for assessment. Here are some ways to onboard business users:

    • Set clear, simple selection criteria: For example, ensure a vendor goes through the assessment process if:
      • They handle personal data.
      • They process sensitive or strategic data.
      • They are connected to your systems.
      • They are critical to your business operations.
    • Simplify vendor onboarding into your program:
      • Implement SSO or API for effortless vendor data collection.
      • Minimize the need for additional InfoSec-specific data.
    • Educate and coordinate stakeholders:
      • Build a cross-functional team (InfoSec, Procurement, etc.)
      • Provide concise, targeted materials for end users
      • Conduct webinars and training sessions.

  2. Estimate vendor risk exposure: Centralize insights

    End users often possess valuable information to assess vendor risk. Ensure that all relevant data is collected and supplemented with automated insights. Key data points include:

    • Business insights:
      • Company details (e.g., size, revenue, location)
      • Procurement data (e.g., vendor criticality, service provided)
      • Vendor relationship (e.g., data shared, IT connections)
      • Regulatory compliance (e.g., NIS2, DORA)
    • Automated insights:
      • Detect certifications (ISO27, SOC2, TISAX)
      • Continuous monitoring and screening

  3. Engage high-risk vendors for deeper assessment

    The collected data may provide enough confidence to recommend certain vendors. However, for critical vendors, deeper engagement is necessary. Actions include:

    • Request additional reports (e.g., penetration test results).
    • Conduct evidence-based, in-depth assessments.
    • Arrange onsite audits if needed.

    These steps provide clear visibility into the maturity of your supply chain. However, the next two steps are crucial for reducing risks effectively.

  4. Collaborate with vendors to drive improvements

    • Translate assessments into specific risks: Identify weaknesses in the vendor relationship that could pose a threat to your organization.
    • Prioritize improvement efforts: Work with vendors to address critical risk factors first.
    • Review regularly: Ongoing reassessments encourage vendors to improve their security practices and scores.

  5. Establish a business-to-business feedback loop for meaningful impact

    In today’s highly interconnected business landscape, managing cyber risks in the supply chain has become increasingly crucial. As vendors play a key role in handling sensitive data and accessing critical systems, organizations need to implement a comprehensive and collaborative approach to address potential threats. By adopting the five key steps outlined, companies can strengthen their supply chains and enhance security for the future.

Teilen