Since 2020, software supply chain attacks have impacted over 490 million Microsoft customers – such as SolarWinds, Log4j, Codecov and Kaseya. An average yearly increase of 742% in attacks since 2019. Safeguarding your organisation against these threats is imperative as the repercussions of a supply chain security breach extend far beyond immediate financial losses, encompassing reputational damage, legal ramifications, and potential disruption to critical operations.
Ranked among the leading supply chain threats are ransomware, phishing, and malware. It is imperative for enterprises to cultivate a comprehensive understanding of their supply chains, meticulously identify potential risks, and collaborate proactively with suppliers. By fostering a collective effort, businesses can not only deter future attacks but also expedite recovery in the event of a breach, thereby fortifying their overall resilience against the evolving landscape of cybersecurity challenges.
In this blog we delve into the use of emerging technologies in Artificial Intelligence to transform your security systems. We will also share other strategies to tackle supply chain risks.
What are Supply Chain Risks?
Supply chain risks encompass economic, environmental, political, ethical, and cybersecurity threats that have the potential to disrupt the flow of services and goods within a supply chain network. This includes exposures, threats and vulnerabilities associated with the products and services coming from the supply chain as well as exposures, threats, and vulnerabilities to the supply chain.
To mitigate these, businesses need to introduce strategies, such as diversification, enhancing supplier relationships, introducing a ‘just in case’ approach and regularly reviewing and updating risk mitigation plans and the use of digital technologies like AI. These proactive steps contribute to building resilience against potential disruptions in the supply chain.
Addressing supply chain risks with Artificial Intelligence
Innovating the security systems within your business is vital to ensure a robust and secure supply chain. According to the Microsoft Digital Defense Report 2023, a staggering 61% of businesses have been impacted by supply chain attacks in the past year. The daily occurrence of cybersecurity incidents highlights the extensive attack surface of supply chains and emphasises the urgent need to take proactive measures to address these challenges effectively. Strong, digital supply chains will help suppliers make similar commitments to safe, secure, and trustworthy AI systems and supply chains that Microsoft has. This can be done by incorporating controls to mitigate evolving AI and privacy risks into supplier governance processes. With the announcement of Microsoft Copilot, the Microsoft Supply Chain Centre allows support to customers to predict and act on supply chain disruptions with the use of Artificial Intelligence and Machine Learning. It also uses Azure OpenAI to create contextual emails to suppliers to help minimise disruptions in real-time. These technologies will enhance human decision making and analysis which results in revolutionised supply chain risk management. Knowing where your data comes from and how it was generated creates a better view on how to manage supply chain risks.
Read our blog ‘Unleashing the Power of AI for Cyber Security’, to explore the synergies between cyber security and AI.
While AI-solutions show great potential for cybersecurity, they do not replace human cybersecurity experts. Ensuring the right expertise is essential when utilising AI for cybersecurity. By bringing together the skills of AI professionals and cybersecurity experts, productivity can be enhanced to effectively tackle cyberthreats.
Additional Strategies to Mitigate Supply Chain Risk
Diversification: Avoiding the risk of concentrating all your resources in one area is crucial for a robust supply chain strategy. Relying on a single region, source or supplier can leave you vulnerable to disruptions, hence why it is advised to diversify your suppliers to create a more resilient supply chain.
Strengthened Supplier Relationships: Building a robust relationship based on mutual trust and understanding contributes to improved communication, and shared risk management. This can be enhanced by investing in your suppliers, either through training or technology to improve their efficiency and reliability so they can grow with you. It is also essential to have regular check-ins and feedback loops to create a culture of transparency and discuss mutual goals and objectives so both parties can benefit from the collaboration.
Implement a ‘just in case’ approach: Adopting a Just in Case (JIC) approach involves maintaining a buffer inventory and excess production capacity. This may increase costs but allows to continue operations during unexpected disruptions.
Regular review of risk mitigation plans: Risk mitigation plans need to be reviewed and updated regularly to ensure relevance and effectivity in changing circumstances. This way potential weak points in the supply chain can be identified and resolved. It is also recommended to train your employees in basic risk management and mitigation strategies, as they will most likely be the first to be exposed to disruptions. More effective crisis response will follow from enhanced skills and knowledge.
Improve Supply Chain Security and Resiliency with Microsoft
Cybersecurity breaches can be particularly devastating as they are involved with multiple parties and sensitive information. Operational technology (OT) devices are becoming more connected which blurs the gap between IT and OT environments and increases the risk of hackers targeting sensitive data from supply chains. Luckily, there is a solution to leave this in the past. Microsoft Security offers tools and services, including Internet of Things (IoT) and OT solutions in Microsoft Defender for IoT and identity access management (IAM) solutions in Microsoft Entra, which support businesses to secure their supply chains and prevent cybersecurity breaches.
As a Microsoft Solutions partner and a member of the Microsoft Intelligent Security Association (MISA), CWSI has the expertise in privacy and data protection required to help you govern and safeguard your data as well as improve your compliance posture.
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Resources
https://csrc.nist.gov/glossary/term/supply_chain_risk
https://www.microsoft.com/en-us/security/security-insider/microsoft-digital-defense-report-2023
