5 Global Supply Chain Security Concerns in 2021
Faced with the new world of remote systems and greater reliance on cloud computing, companies must think carefully about their business processes. Remote systems impact many core aspects of their existing supply chain security management, including:
- Data protection
- Data locality
- Fraud prevention
- Data governance
- Third-party risk.
It can be hard to do two things at once. You need to keep your data connected because you need data workflows to run a successful business. At the same time, protecting your data from breaches and attacks is an ongoing challenge.
Data protection is vital in finance and health care, and it’s under increasing threat in the growing e-commerce industry due to the rapid growth in the past year. Global e-commerce sales will reach $4.5 trillion this year and top $969 billion in the U.S. alone by 2023. With so much on the line, attackers and bad actors have plenty of incentive to launch attacks.
Local Rules for Data
Supply chain workers must collect and store data at all tiers of the supply chain to protect the data and use it to make informed decisions.
Of course, data laws and industry standards vary by country and region. Some companies will risk trade secrets and the personal privacy of their consumers and suppliers by exchanging data as required by government laws.
Supply chain workers must collect and store data at all tiers of the supply chain to protect the data and use it to make informed decisions.
Of course, data laws and industry standards vary by country and region. Some companies will risk trade secrets and the personal privacy of their consumers and suppliers by exchanging data as required by government laws.
Data Governance
More companies today adopt remote work and encourage their employees to talk via project management software and mobile apps. So, the surface area the business must oversee becomes larger. Companies must use best practices for handling threats and enforce new standards on how their employees and suppliers access and share data.
At the same time, the Internet of things (IoT) is growing. How that data is secured and managed could have a major effect on people.
More companies today adopt remote work and encourage their employees to talk via project management software and mobile apps. So, the surface area the business must oversee becomes larger. Companies must use best practices for handling threats and enforce new standards on how their employees and suppliers access and share data.
At the same time, the Internet of things (IoT) is growing. How that data is secured and managed could have a major effect on people.
Fraud Prevention
As the number of data touchpoints increases in a supply chain, the need for better defense increases too. Each node is a potential gateway for attacks or losing data by mistake.
Fraudulent emails and social engineering cases soared during 2020, with KPMG reporting two cases of supplier remittance fraud that used voicemail and email.
In one case, a spoof voicemail, enabled by DeepFake AI, resulted in a loss of millions of dollars. In another event, fraudsters grabbed an email carrying an invoice and altered the bank account details, robbing hundreds of thousands of dollars from the company.
As the number of data touchpoints increases in a supply chain, the need for better defense increases too. Each node is a potential gateway for attacks or losing data by mistake.
Fraudulent emails and social engineering cases soared during 2020, with KPMG reporting two cases of supplier remittance fraud that used voicemail and email.
In one case, a spoof voicemail, enabled by DeepFake AI, resulted in a loss of millions of dollars. In another event, fraudsters grabbed an email carrying an invoice and altered the bank account details, robbing hundreds of thousands of dollars from the company.
Third-Party Risk
Everyday products like computers, mobile phones and cars are growing more complex. They may require four or more supplier tiers to reach the finished product.
Although better products are good for the market, working with external partners also increases the risk to the supply chain. With 60% of supply chain workers surveyed not watching third parties for ongoing risks, engaging with unknown people increases their risk exposure.
Everyday products like computers, mobile phones and cars are growing more complex. They may require four or more supplier tiers to reach the finished product.
Although better products are good for the market, working with external partners also increases the risk to the supply chain. With 60% of supply chain workers surveyed not watching third parties for ongoing risks, engaging with unknown people increases their risk exposure.
Source: Security Intelligence News
