Introduction
A supply chain is a sequence of complex processes that are prone to risks, which is why it is essential to identify and address them. According to Casado-Vara et al. (2018), it is a linear model that is ultimately focused on fulfilling supply needs. Since the 21st century is highly dependent on technology, the cybersecurity industry needs to be addressed as one of the main risk prevention measures that may positively benefit the supply chain domain. All the processes, communication between suppliers and producers, and relations in the market depend on modern technology. All supply chain actors depend on each other and have the same ultimate goal (Büyüközkan & Göçer, 2018). If one of the branches of the whole process is compromised, the outcome will not be satisfactory. In terms of global supply chains, the issue is even more critical. It is vital to create an environment that is beneficial for every participant in the process (Fan & Stevenson, 2018). Cooperation is essential when it comes to addressing cybersecurity-related risks on an international model because it is the only way in which the supply chain community can communicate, have logistical relationships, and provide timely services and products for the customer.
Supply Chain Risks
The supply chain involves many different stages and processes, which is why risk management is a subject that is critical in addressing the issues that may occur. Supply chain risk management consists of multiple strategies that are designed to assess, investigate, mitigate, and control certain conditions or processes that are unexpected and may impact any aspect of the chain (Baryannis et al., 2018). Since there are so many parties involved, it is crucial to assess every part of the process, from obtaining the raw material to the delivery to the customer. This is why researchers highlight the importance of having a holistic approach (Fan & Stevenson, 2018). However, the risk of cyberattacks is becoming more significant each day due to the expansion of the field of technology.
Cybersecurity is the critical answer to most of the modern-day problems that may occur within the supply chain. It has been mentioned that every actor, including the suppliers, dealers, manufacturers, and customers, need to communicate along the way (Büyüközkan & Göçer, 2018). If the cybersecurity domain is compromised, communication can become inefficient or impossible. Moreover, as internet availability and widespread use increase, the issue becomes even more relevant. Xin et al. (2018) point out that as cyberattacks are becoming more complex and frequent, cybersecurity is not at the level it should be. There are several possible issues that may occur during the entire supply chain process.
One risk is the limited security that does not cover all the branches of the supply chain. If the supplier pays attention to having secure technological experiences within the process while the manufacturers do not, the whole chain is compromised. Another possible issue may be the employees’ lack of information regarding the subject. If employees are allowed to bring their personal devices and connect them to a corporate network, the whole system will be at risk for unauthorized data access. This is why it is essential to inform each person about the general rules and policies that would ensure a secure work environment. One more problem may be hiring third-party services that may subsequently gain access to private data within the corporate network. In case one of the actors within the supply chain hires a third-party software engineer, the risk for illegal intrusion and stealing of data will become significantly higher.
There is also the risk of storing data on third-party data storage systems. This makes it possible for unauthorized people to access and use private data, which can become a factor that disrupts the supply chain. Last but not least, it is risky to buy compromised hardware or software from unreliable and unknown suppliers. The purchase will not add any benefits to the supply chain processes. Instead, the low-tier suppliers may control, distort, or use the private data regardless of the possible harm to the supply chain.
Due Diligence
Due diligence is crucial in addressing supply chain risk management in regard to cybersecurity. According to Crumpler and Lewis, cyber threats are becoming more complex and sophisticated (2019). Sun et al. (2019) also highlight the increasing rate of high-profile cyber-attacks and threats. This is why it is crucial to minimize or mitigate the possible risks. Due diligence refers to the processes of assessing and addressing the risks related to the network. The results are usually focused on examining potential gaps and issues in the system, which will then be filled in and fixed before every process of the chain supply is compromised. It is essential to create specific due diligence norms that would help mitigate possible issues (Shackelford et al., 2016). One of the aspects of due diligence is investigating the suppliers before entering into direct contact with them. Several questions that have to be addressed to the suppliers can benefit the domain of cybersecurity:
- What measures do the suppliers have for securing and monitoring the technological implications during all processes?
- Are all employees aware of possible security issues and the risks of working while using personal devices?
- Are third parties involved in technological processes? If so, how is security maintained, and what are background checks used to examine the companies involved?
- Is data stored on a third-party system? If so, how is security measured, and how are the credentials of the third parties assessed?
- Are the suppliers of software and hardware examined before making purchases? If so, when are the security practices involved in choosing reliable suppliers?
These five questions are helpful when it comes to assessing the possible risks and issues that may occur regarding cybersecurity.
There are, however, many more aspects that may have a negative influence on supply chain management. In order for the possible problems to be investigated, the social, political, and economic factors have to be taken into consideration. The social risks are often linked to corruption or the comprehensive screening of suppliers. If one of the supply chain actors is involved in unethical practices or unfavorable business practices, the whole process will suffer from negative consequences. In terms of the political environment, global supply chain management is most favorable in areas where political regimes are stable and are eager to have a flourishing economic system that allows companies to develop and expand. A suppressive country that cannot create an open environment for fair trade is one of the most substantial risk factors that can negatively influence supply chain management. The economic factor also correlates with risk management. Poorly-managed economical systems may lead to demand shocks, unstable markets, sudden price changes, and other risks that impact global supply chain risk management.
Best Practices
As mentioned before, managing global supply chain risks in the cybersecurity industry is a critical aspect of maintaining a favorable work environment and having positive outcomes. According to Sarker et al. (2020), recent days are described as being revolutionary in terms of cyber strategies for mitigating threats and attacks. Since due diligence is a key part of effective cybersecurity practices, more norms have to be implemented (Shackelford et al., 2016). Researchers suggest that it is vital to pay attention to every process within the whole cyber domain (Fan & Stevenson, 2018). It is crucial to resort to certain promising practices that would lead to the improvement of all the processes included in the supply chain and the cybersecurity field in general.
Starting with employees is an acceptable way of addressing the security issue. Each employee that begins working for the company has to sign a contract that specifically mentions certain aspects of cybersecurity, such as not using personal devices while connecting to the company’s network, not sharing passwords and other private data, and not downloading unreliable files. This practice will potentially mitigate certain risk factors related to supply chain management in cybersecurity.
Another important policy is controlling every new component and device purchased from third-party suppliers. If the new components are intentionally compromised, the possibility for a leak of private data and information substantially increases. While making such purchases, it is essential to carefully select vendors and examine all the new parts that are purchased by inspecting them before installing them. This is another practice that can be used to minimize possible problems with cybersecurity.
Hiring a security team that will guide the whole staff in regard to cybersecurity is also a good solution. Specialists can assess possible gaps in the systems, teach other employees about securing their data, and provide a comprehensive report on potential changes that need to be done for a more clear cybersecurity strategy. Moreover, the security team will be in charge of every new device and part purchased, which will allow them to examine every detail before installing and connecting the new element to the corporate network.
Besides controlling new purchases, it is essential to assess the suppliers of the goods. Depending on how reliable and reputable they are, vendors can have a significant influence on the cybersecurity domain. An unreliable vendor will not only cause the company to spend money on goods that are not in working condition but also compromise the whole spectrum of supply chain risk management assessments. Implementing set policies when it comes to choosing vendors will result in having transparent transactions and devices that are not altered to store and share important information with third parties that should not have access to it.
Limiting the access to software imposed on vendors is one more security measure that can be applied. Allowing access to software is a risky procedure, which is why only a few trusted vendors can be granted the needed authorization to enter the system. The situation is different with hardware vendors since control systems have no involvement, and only the mechanical aspects are included. Being cautious about the limitation of access to the software will ensure low risks for outside attacks and threats regarding the cybersecurity system.
Conclusions
The supply chain is a complex scheme that consists of multiple interconnected processes and tasks performed by multiple actors. This is why the cybersecurity industry is a valuable tool that the global supply chain relies on when it comes to securing data and information. According to researchers, lack of cybersecurity leads to a higher risk of equipment malfunctions, data leakage, and unethical use of private corporate information (Corallo et al., 2020). The problems that may occur within the cybersecurity industry imply bad outcomes for all the actors within the supply chain. Compromised technology makes communication, logistics, and coordination impossible. This proves that assessing the risks and mitigating them is crucial. There are certain practices that can be used to minimize the risks related to the cybersecurity industry. This is why due diligence is used to examine possible problems and suggest favorable solutions. These include implementing specific regulations for all employees, reviewing all newly purchased devices and parts, having a reliable security team, choosing trustworthy suppliers, and limiting access to the software. Moreover, supply chain risk management has to be approached holistically since many aspects may impact the workflow in such complex processes.
Certain political, economic, and social factors may also increase or decrease the risks in the supply chain. However, such implications are often impossible to mitigate without making drastic changes. However, the stakes for cyberattacks are manageable through some of the practices mentioned above. Risks such as using personal computers and connecting them to the corporate network, purchasing compromised devices, lack of a professional security system, and hiring third parties while giving them access to the software can negatively affect the global supply chain. All these actions have the potential to cause the whole supply chain to have bad outcomes even if only one actor does not follow the cybersecurity guidelines highlighted earlier. Since technology is the most efficient way in which the global supply chain can maintain communication, cooperation, and timely services, addressing the cybersecurity industry is the critical minimizer of all the risks related to the subject.
References
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