Cybersecurity Issues Within Supply Chain
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Information Systems
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Nov 24, 2024
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Cybersecurity Issues Within Supply Chain
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Introduction
The gradual and continuous technological advancement has made every department in
the business operation depend on technology in one way, requiring proper cybersecurity
systems and protocols. Supply chain sections have shown significant dependence on
technology, resulting in many cyber security issues in the sector. The main issues that have
come up about cybersecurity in the sector include malware attacks that have appeared to
compromise overall operations. Attacks that affect the distribution of services, and insider
threats, among many other events and incidences that, have been reported to compromise the
smooth running of the supply chain. Cybersecurity is therefore needed to help in the overall
mitigation of the various technology-related challenges in the supply chain. The increasing
cases of security problems and threats that have compromised the overall operations of many
companies have made it important to learn more about cybersecurity issues arising in the
supply chain and identify the challenges, impacts, and solutions to the problems.
The Main Cybersecurity Issues Within Supply Chain
In the same way, technological advancement has brought improvement and
efficiency within the supply chain; it has also come with equal measures of cybersecurity
issues and threats. The first common one is malware attacks, where the criminals use
malicious software to help them get access to the system illegally and get the data or
information to that they need not access. The malware sometimes compromises the normal
working of the system, and in such cases, the supply chain activities might not be able to
work effectively. Malware can be introduced at various levels, which could be software or
hardware. The case of Target is one of the perfect examples of cybersecurity issues where the
system was infiltrated and compromised, causing huge losses both financially and in terms of
data. It was reported that the malware that was used in the Target breach was very
sophisticated and so hard to detect. (Sawik, 2022).
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The other issue is the social engineering attacks that have become very common in the
current world. The social engineering attacks have so much to do with human psychology,
which has become a major issue in the supply chain sector. This is the issue where human
psychology is exploited to get entry into the system. This kind of attack have become
common, and the attackers are known to target the individuals in the supply chain.
The other major issue that relates to cybersecurity is the human elements and
the weaknesses that relate to it. The human element can also be defined or termed as insider
threats. The insider threat is known to have so much to do with the employees who are in the
supply chain. When the employees are compromised, they can sell critical information or
aces to malicious individuals that might get to cause a cybersecurity attack. The issues of
human threats have been such a huge issue when addressing cybersecurity issues. This is one
of the issues that make the cybersecurity discussion such a major concern even for human
resources. It also brings ethical, moral, and trust issues in the same subject.
Impact of the Cybersecurity Issues Within Supply Chain
The supply chain is an integral part of any organization or even the economy at large.
Cyber security problems or threats can greatly affect the smooth operations of supply chain
activities or operations. It should be noted that the impact of cybersecurity can also come in
both positive and negative. When enhanced, it ensures confidence and overall reliability in
the supply chain operations. When the security is enhanced, it means that the supply chain
operations of an organization are free from any form of threat and that the data cannot be
stolen or misused. Latif et al., 2021).
The issues of cybersecurity have, however, brought about concern because of the
adverse effects. First, the issue of cybersecurity has an impact on the reputation of the supply
chain department and the organization at large. When working with any organization and the
supply chain activities, the reputation of the supplier or an organization is one of utmost
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importance. Cybersecurity and the breaches that relate to it in the organization's operations
greatly affect the organization's reputation. When the organization is not able to assure the
suppliers or the stakeholders it works with about the security because the system can be
easily breached, the reputation is affected significantly.
There are also issues of financial loss that are related to the issues of cybersecurity. It
is not easy to have in place proper cybersecurity systems, and it means the company has to
pat with a significant amount of money to maintain the systems. In the event that the
cybersecurity systems are breached, it means that the business could also lose a significant
amount of money to cyber criminals or even compensation. Financial losses that relate to
cybersecurity are related to the supply chain, either direct or indirect. There are many
organizations that report adverse financial losses as a result of cybersecurity breaches. The
2017 attack on the NotPetya system with malware caused a huge loss in the global supply
chains. The financial loss associated with the attack was projected to be $10 billion. (Boiko,
et al, 2019). When cybersecurity issues and attacks hit a company or the supply chain,
financial losses are inevitable. Funds can either be stolen or the operations of the supply chain
affected, and the businesses do not operate.
The supply chain system needs an and effective and stable flow of operations or
activities. The working of the system of the supply chain means the technological bit of it is
running effectively. Technology breakdown that relates to the supply chain can affect the
normalcy or the normal running of the organization. The Distributed Denial-of-Service
(DDoS) Attacks have been such a major issue and impact the cybersecurity problems. The
supply chain is as success is dependent on the smooth flowing of operations. With the
advancement in the field of technology and most of the supply chain operations are run
through the use of technology systems. Cybersecurity attacks are also directed at the
operations where it greatly compromises the effective running of the services.
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Mitigation of Cybersecurity Risks and Problems in the Supply Chain
The dangers associated with cybersecurity threats are so huge, and no
organization in the supply chain wants to deal with such consequences. To ensure there is
effective running of the supply chain operations, several mitigation approaches can be put in
place. The first step is the establishment of proper and relevant cybersecurity standards. The
supply chain departments need to have the right standards that need to be met in terms of the
systems that are used in the sector, and the cyber security protocols, among others. The sector
can put in place the standards like the NIST Cybersecurity framework. The standards would
help the employees and the organization to come up with the right best practices to ensure
effective operations.
The other approach that can be used to mitigate the challenges is to ensure that
employees and all the stakeholders in the technology department are trained on cybersecurity
threats. One of the major issues of cybersecurity within the supply chain has been identified
to be the internal threat Melnyk, S. A., Schoenherr, T., Speier-Pero, C., Peters, C., Chang, J.
F., & Friday, D. (2022). It would be important, therefore to have in place the right team and
those who cannot jeopardize the security of the organization Cheung et lafmuly, 2021).
Having highly trained professionals who are loyal to the organization will be important for
effective operations.
The supply chain department should also promote the continuous assessment
of the supply chain systems and its operations to ensure that the threat is identified and
contained before it causes extensive damage to the system Cheung and El4tatc, 2021).. When
the supply chain is compromised it is like the entire economy is sabotaged and that explains
why there needs to be a proper way of dealing with the challenges through identifying them
early enough.
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The other way of mitigating the challenge would ensure that the supply chain
section has the best of the available cybersecurity infrastructure. Normally when the
technology is improved, it basically means the security features are also improved. The
supply chain should have in place the right system that protects it from any potential threats.
Technology threats can be contained effectively by having in place the right technology
measures.
Conclusion
It is safe to say that businesses in every sector are increasingly worried about hacking
threats in the supply chain. Because of their growing complexity and reliance on digital
technologies, supply networks are increasingly at risk from cyber assaults, which can cause
substantial financial losses and brand harm. Organizations in the supply chain need to take a
holistic approach to cybersecurity by doing things like assessing risks, putting in place
controls, laying out guidelines for suppliers to follow, keeping tabs on how well they are
following those guidelines, planning for and responding to incidents, training staff, and
bolstering the supply chain itself. Organizations can lessen the likelihood of computer
assaults and supply chain delays by implementing these measures. All companies in the
supply chain need to make cybersecurity a top concern if they want to keep their processes
safe and secure. The sensitive nature of the supply chain means that in the event that an attack
is experienced, the business should be able to respond appropriately. There have been losses
in the sector and the industry at large which means that the organizations in the supply chain
should be able to come up with not only a quality system but also one that is also keen on the
effective implementation of the systems,
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References
Boiko, A., Shendryk, V., & Boiko, O. (2019). Information systems for supply chain
management: uncertainties, risks and cyber security.
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Cheung, K. F., Bell, M. G., & Bhattacharjya, J. (2021). Cybersecurity in logistics and
supply chain management: An overview and future research
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Latif, M. N. A., Aziz, N. A. A., Hussin, N. S. N., & Aziz, Z. A. (2021). Cyber security in supply
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Melnyk, S. A., Schoenherr, T., Speier-Pero, C., Peters, C., Chang, J. F., & Friday, D. (2022).
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