As cybercrime continues to evolve, supply chain attacks are becoming more prevalent. This article explores the rising threat and the importance of standards like ISO 27001 in managing third-party risks.
The Rising Threat of Supply Chain Attacks
Cybercrime has seen exponential growth over the past decades, with the global cost currently estimated at $8.15 trillion. Cybercriminals are becoming increasingly innovative, exploiting new avenues such as distributed denial of service (DDoS) attacks, phishing, and crypto-jacking.
Supply chain attacks, where cybercriminals infiltrate the least secure aspects of a company’s digital ecosystem, are becoming more common. These attacks exploit the interdependencies between enterprises and their digital service providers, making them particularly challenging to defend against.
Recent examples of supply chain attacks include the Okta, Change Healthcare, and Home Depot breaches. A survey by ISMS.online revealed that 43% of U.S. businesses have experienced a partner data compromise in the last year, with 84% having experienced at least one security incident originating from their supply chain or third-party vendors in the previous 12 months.
The Role of Standards in Managing Third-Party Risks
To manage these growing risks, companies can turn to best-practice frameworks like ISO 27001. This international information-security management standard provides a structured approach to safeguarding information assets. It promotes a holistic approach to information security, vetting people, policies, and technology, making it well-suited to managing third-party risk.
ISO 27001 lays out specific guidelines to ensure everyone in the supply chain is aligned on security. It requires third parties to adhere to the same security standards as the main organization, keeping the entire information security management system (ISMS) consistent and strong.
An effective third-party risk-management program under ISO 27001 centers on three key components: risk-assessment procedures, due-diligence processes, and regular audits.
The Importance of an ISMS
Adopting an ISMS is crucial in managing these components. An ISMS platform integrates third-party risk management by systematically identifying, evaluating, and addressing security risks linked to external suppliers. It enables the setting of pre-defined security criteria and conducting of periodic assessments.
Effective documentation is also crucial for compliance and audit purposes. An ISMS platform enables the maintenance of records of all third-party interactions, including risk assessments, security requirements stipulated in contracts, and ongoing performance monitoring.
Given the growing threat of supply chain attacks, it’s imperative that companies embrace cybersecurity best practices both internally and among suppliers, service providers, and other partners. Now, more than ever, protecting your organization from evolving supply chain threats must be a priority.
