The interconnectedness of modern business has never been more evident—or more vulnerable.
Even casual readers can feel the scope and scale of recent high-profile cyberattacks on companies like LoanDepot and 23andMe, which have underscored the fragility of today’s supply chains and exposed critical vulnerabilities that cybercriminals are exploiting.
As these supply chain-related attacks become more frequent and sophisticated, it’s clear that the traditional approaches to cybersecurity are no longer enough. In fact, a recent survey found that 91 percent of private- and public-sector organizations in North America experienced a software supply chain incident in the past year.
If your organization wants to steer clear of these dramatic headlines and the daunting financial impacts that these attacks can send throughout your supply chain network, now is the time for your business to reevaluate its security strategies and fortify its cyber resilience with a new approach.
Overview of the Challenge: The Supply Chain as an Ecosystem
No matter the industry, the supply chain functions as a global, fluid ecosystem, made up of interconnected links that span from the same town to halfway around the globe. Along the way, each part of this ecosystem constantly communicates with others, exchanging data, information, and resources to maintain productivity and efficiency.
However, this same interconnectivity also means that a vulnerability in one entity can compromise the entire system. A single weak link, such as the COVID-19 pandemic or Crowdstrike patch glitch, can disrupt operations, cause financial loss, damage reputations, and introduce new operational risks.
Similarly, a cyberattack on any one of these links can have a cascading effect, potentially bringing the entire system to a standstill. The complexity of these relationships and the continuous flow of information between them creates multiple entry points for cybercriminals. This reality has made supply chains an attractive target for malicious actors adept at exploiting these vulnerabilities to achieve their objectives.
The 3 Biggest Supply Chain Mistakes Companies Make
While businesses can enjoy operational efficiencies from having close ties with their suppliers, this same interconnectedness can also introduce weaknesses to their security programs. These vulnerabilities can be exacerbated when companies make these common mistakes:
- Failing to Acknowledge the Problem
One of the most significant mistakes companies make is failing to recognize the importance of cybersecurity within their supply chains.
Despite the increasing awareness of cyberthreats, many organizations still do not take the necessary steps to protect themselves and their partners. This inaction often stems from a belief that they are not a target or that their existing security measures are sufficient. It’s common for organizations to feel secure until an actual attack occurs, at which point vulnerabilities become starkly apparent and what were once considered sufficient protective measures are suddenly painfully insufficient.
However, as recent high-profile incidents have shown, even if an organization believes its security controls are sufficient for external threats, threats from trusted connections with partners can still lead to devastating consequences.
- Not Knowing Where to Start
The complexity of modern supply chains can be overwhelming, making it difficult for companies to determine where to begin when implementing cybersecurity measures—let alone when assessing them.
With multiple parties involved—each with its own set of processes, systems, and vulnerabilities—the task of securing a business’s entire supply chain can seem daunting.
This lack of a structured approach to risk management clarity can lead to inaction or piecemeal efforts that fail to address the root causes of cyber risk.
- Relying Too Much on Preventative Security Tools
Finally, many companies focus too heavily on preventative security tools, such as firewalls and antivirus software, to protect their network edges. While these tools are certainly essential, they are not enough on their own.
Cyberthreats have evolved to bypass these defenses, and once inside a network, they can spread quickly and cause significant damage. These threats can also be hidden within shared documents, long-standing integrations between systems owned by different partners, or patches to software.
Over-reliance on preventative measures that overemphasize protecting the edge of a network will overlook the reality that threats not only likely already exist within the network, but could also have come from a critical element of a business’s supply chain.
Proven Strategies to Overcome Supply Chain Security Challenges
Fortunately, while the vulnerabilities can be serious (and daunting) we have seen our customers and partners take control of their supply chain security challenges by following some proven strategies. These include:
- Implementing a Zero Trust Security Model
One of the strongest moves that businesses can make to tackle their supply chain cybersecurity challenges is to adopt a Zero Trust security model.
The foundational assumption of Zero Trust is that threats are already present within a network and that no entity—internal or external—should be trusted by default. Instead, every access request must be verified and authenticated, regardless of where, when, and from who it originates.
Having a security program and related tools in place to enable this Zero Trust architecture ensures that even interaction is validated using predefined rules, which will block connections that utilize unusual protocols, impersonated authentication methods, or abnormal sources.
Fortunately, the process to make the shift to a Zero Trust security model can be straightforward. Here are three high-level steps:
- Identify components: The first step in implementing Zero Trust is to identify all components within your organization, including devices, applications, and users. This inventory should be comprehensive, covering every aspect of your enterprise and its interactions with the supply chain.
- Secure components individually: Once the components are identified, determine how to secure each one individually. Establish clear policies that define who can access what, with which devices, and under what conditions. These policies should be enforced consistently across your organization and supported by supply chain partners to ensure cohesive security practices.
- Turn policies into practice: Translate these guidelines into actionable policies and enforce them through technologies like multi-factor authentication (MFA), encryption, identity and access management (IAM) tools, and continuous monitoring. This ensures that only authorized users have access to critical systems and data, minimizing the risk of a breach.
- Starting Small, Thinking Big
As with any project, going too big too fast can lead to burnout, mistakes, and wasted resources. That’s why we recommend taking deliberately limited steps at first while also keeping broader organizational goals in mind—this approach allows for scalable improvements that can be expanded across the entire enterprise.
- Start small and scale up: For organizations with complex supply chains, implementing a comprehensive cybersecurity strategy can be even more overwhelming. To make it more manageable, we recommend starting small by focusing on a single, manageable aspect of the supply chain. Gradually expand security measures as your organization gains confidence and capability.
- Focus on one thing at a time: Select a specific area of the supply chain to begin with, such as securing a particular supplier relationship or protecting a critical piece of infrastructure. By narrowing their focus, security teams can develop effective solutions that can later be scaled up to encompass the other elements of the supply chain.
- Collaborate with partners: Work closely with your supply chain partners to promote more cohesive and effective security measures. Collaboration can include sharing threat intelligence, conducting joint security assessments, and aligning on security standards and protocols.
- Having a Proactive Approach to Cybersecurity
Cyberthreats are constantly evolving, and your security measures must evolve with them. A proactive approach to cybersecurity involves regularly reviewing and updating your security protocols to adapt to changes in your supply chain and operating environment. This means having the necessary roles and mechanisms in place to:
- Regularly review and update security protocols: Conduct regular security audits to identify and address any gaps or vulnerabilities in your current strategy. As new threats emerge, update your protocols to ensure they remain effective.
- Adapt to changing conditions: The dynamic nature of supply chains means that your cybersecurity strategy must be flexible and adaptable. As your supply chain grows or changes, update your security measures to reflect new risks and ensure continuous protection.
Bringing It All Together
Facing the complex cybersecurity challenges of today’s supply chains can be daunting, but taking a proactive and comprehensive approach can make the problem manageable.
The strongest move, however, is to adopt a Zero Trust security model. Implement the practices and program at a small scale and then broaden it out to the rest of your network while collaborating with partners.
As we all know, the work won’t stop there. Teams will need to regularly review and update security protocols to ensure that their supply chain remains secure in the face of evolving threats.
However, we believe that with these strategies in place, businesses can protect their operations, maintain productivity, and safeguard their reputations against tomorrow’s biggest cyber risks.
About the Author
Dr. Jaushin Lee is Founder and CEO of Zentera Systems. He is a serial entrepreneur with many patents. He is also the visionary architect behind CoIP® Platform, Zentera’s award-winning Zero Trust security overlay. Jaushin has over 20 years of management and executive experience in networking and computer engineering through his experience with Cisco Systems, SGI, and Imera Systems. Jaushin can be reached online at https://www.linkedin.com/in/jaushin-lee-ph-d-6393791/ and at our company website https://www.zentera.net/
