Because there's a vulnerability that gets nested and embedded within it, a manufacturer such as my . The Target breach of 2014 is still one of the most well-known third-party vendor attacks. Therefore, the supply vulnerability which presents as the efficiency score is defined as one of the inputs of CoDEA. According to Sonatype's 2020 State of the Software Supply Chain Report, supply chain attacks targeting open-source software projects are a major issue for enterprises, since 90% of all. In an earlier MIT Sloan Management Review article,2 we considered different supply chain configurations for risk and performance. By understanding the different components of your supply chain, you can better identify potential cyber risks and take . The report examines vulnerabilities in the U.S. government information and communications technology (ICT) supply chains posed by China, and makes . Industrial policies adopted by allied, partner, and competitor nations. That to me highlights the level of fragility that exists in supply chains." Uber Freight found in an analysis that even if just 20% of rail freight had shifted to trucking due to a strike,. Addressing Supply Chain Cybersecurity Risks To remain resilient against the wave of cyber threats impacting an organization's supply chain, they first need to understand and reevaluate. Supply chain compromises. The Case for a Whole of Nations Approach. Like any business, financial companies are only as secure as the weakest link in their supply chain. Part of the problem is that global networks of secondary and tertiary suppliers can become so complex that even the . As the Covid-19 pandemic gathered pace in March, the chief executive of Nestl warned his almost 300,000 staff: "Get ready for the storm to hit.". President Joe Biden signed an executive order Wednesday that will result in a 100-day review of supply chains by the executive branch for pharmaceuticals, critical minerals, semiconductors and large capacity batteries. 28% of companies analyzed showed evidence indicating they would fail . Of course this applies to inadvertent vulnerabilities, but what about malicious actors (though note that Brewer et al. Key factors that would disrupt business continuity. The head of the world's . as SC vulnerabilities were exposed during the H1N1 and Ebola outbreaks in 2009 and 2014, respectively . . With the supply chain, it becomes a force multiplier because a single attack can be the access point to multiple targets. With the transformation to the digital age, supply chain attacks have become harder to defend against cyber-attackers. Some of the static code analysis tools detect security vulnerabilities in the source code itself or other general issues. To achieve these goals, the first imperative is to get the facts straight. Dozens of bills as well as executive branch actions propose to address these vulnerabilities. not the supply-chain itself, it is an important area to help secure the root of the value you're trying to . As we mentioned above, globalized supply chains can diversify supplier choice, reduce costs and smooth logistical volatility. Supply Chain Vulnerability Modern supply chains are very complex, with many parallel physical and information flows occurring in order to ensure that products are delivered in the right quantities, to the right place in a cost effective manner. Third-party vendors as an attack avenue This is one of the most common supply chain vulnerabilities. observe that "Taking a step back, although supply-chain attacks are a risk, the vast majority of vulnerabilities are mundane and unintentionalhonest errors made by well-intentioned developers.")? Our latest Vulnerability Insights Series analysis shows both an increased risk of shortages for some types of antimicrobials and the geographic concentration . Our team also has experience with modeling and working with supply chain data and running simulation exercises that test the resiliency of supply chains during disruptions . Over half of the 300 SMB defense contractors had critical vulnerabilities to ransomware. These emotional vulnerabilities can lead to three different types of medical supply chain risks: (a) increased likelihood of fake drugs, inferior testing kits and poor-quality masks or ventilator pieces being brought into care centres. Misaligned incentives and short-termism in private markets. A systematic process for managing supply chain risk by identifying susceptibilities, vulnerabilities, and threats throughout the supply chain and developing mitigation strategies to combat those threats whether presented by the supplier, the supplies product and its subcomponents, or the supply chain (e.g., initial production, packaging, handling, storage, transport, mission operation, and . The recent pandemic has caused major supply chain disruptions that will take many quarters to recover, and maybe years depending on the industry. Supply Chain Attacks vs Supply Chain Vulnerabilities. . . To reduce supply chain cybersecurity vulnerabilities, it is important to first understand your supply chain fully. "Furthermore, the complexity of the ICT supply chain has led many original equipment manufacturers (OEMs) to outsource firmware development to third-party suppliers . Contractors engaged in these areas must be vigilant about their supply chain vulnerabilities. by Cody Bann WIN-911 09/16/2022 Even before the COVID-19 pandemic started, global supply chains were experiencing growing pains as they adapted to meet the pressures of rising demand and a delivery system in need of an overhaul. . The Vulnerabilities that Adversaries Target in Supply Chains. 1. Through performing a Supply Chain Vulnerability Assessment, a business's supply chain resilience is increased through risk mitigation strategies that the assessment helps uncover. The impact is expected to affect businesses indefinitely; thus, the SC is unlikely to resume its preCOVID19 status. Below are six proactive actions supply chain leaders can take to address the above problem areas both in the immediate as well as the long term to refortify their supply chains. Organizations that optimized cost over resilience, relying on single-sourcing or low-cost sourcing from. Protecting Supply Chains for Critical Technologies Your organization must adopt an aggressive approach to protect the entire attack surface to meet this potential threat. As investors, these vulnerabilities offer opportunities, with areas such as robotics or the need for smart last-mile fulfilment solutions seeing accelerated adoption and growth as supply. As the following pages of this white paper will elaborate An advanced persistent threat (APT) actor is responsible for compromising the SolarWinds Orion software supply chain, as well as widespread abuse of commonly used authentication mechanisms. To implement those strategies we find, broadly speaking, that today's managers have two choices for achieving lower risk in the supply chain: They . We discussed different mitigation strategies that companies could tailor to the type and level of risk they faced. Supply chain vulnerability indicates the responsiveness of a supply chain to disruptions, and can be defined as an exposure to serious disturbance arising from supply chain risks and affecting the supply chain 's ability to effectively serve the end customer market. Supply Chains' Digital Transformation Exposes Vulnerabilities Remote alarm notification software adds protection. Supply chains often comprise thousands of vendors, many of which might be vulnerable. Without visibility into the threats surrounding these intricate systems, organizations are at risk of cyberattacks with significant consequences. It achieves this by aggregating software security metadata from a mix of public and private sources into a "knowledge . Supply chains are targeted by hackers seeking a 'back door' into larger companies. This past August, Google further introduced a bug bounty program to identify security vulnerabilities spanning a number of projects such as Angular, Bazel, Golang, Protocol Buffers, and Fuchsia.. GUAC is the company's latest effort to bolster the health of the supply chain. The breach exploited a vulnerability that was leveraged to gather intelligence, mine data, and to sow animosity and resentment between organisations. By most accounts, even the most sophisticated organizations have real-time visibility into only a fraction of their supply chain. The Food Protection and Defense Institute team has in-depth knowledge of various typical food supply chain structures and the evolving nature of supply chain vulnerabilities. In this paper, a methodology is provided for dealing with vulnerabilities in an agrifood supply chain. The software provider could be an enterprise software company such as SolarWinds, an open-source project . They also need to be aware of the regulatory risks posed by foreign investment, including review and potential intervention by the Committee on Foreign Investment in the United States (CFIUS). Software components can contain software vulnerabilities (log4j/text4shell etc.). The U.S. government needs a national strategy for supply chain risk management (SCRM) of commercial supply chain vulnerabilities in U.S. federal information and communications technology (ICT), including procurement linked to the People's Republic of China (China or PRC). Adversaries are constantly lurkingseeking vulnerabilities in your supply chain that could be exploited to gain access to networks, data, or weaknesses that could lead to disruptions in service or the failure of critical systems. "The ubiquitous use of open-source software can threaten the security of the software supply chain given its vulnerability to exploitation," reads Commerce and DHS's report. The 100-day report identified five interrelated themes that contribute to supply chain vulnerabilities: Insufficient U.S. manufacturing capacity. By Jill McKeon. In the context of supply chain vulnerability, the supply nodes are a vital resource of a network. For example, if the USS Gerald R. Ford, the Navy's new $13 billion aircraft carrier, requires a small auxiliary part that's made overseas and a trade war or conflict breaks out, the US wouldn't be able to replace that part. And what tools and capabilities are available to help companies assess and analyze those vulnerabilities? However, the Covid-19 pandemic exposed many of their vulnerabilities. A Supply Chain Vulnerability Assessment is a specific risk assessment tool to find potential weaknesses that can eventually impact your company's supply chain. Traditional cyberattacks are a one-to-one relationship between adversary and target. The Freight and Logistics Supply Chain Assessment responds to Executive Order 14017: America's Supply Chains by identifying and addressing current transportation supply chain vulnerabilities and challenges and recommending potential policy responses to strengthen the resilience of the freight system and reduce impacts from future disruptions. But they can also mean longer lead times, as shipping (and the unpredictability that can accompany it) needs to be factored in. Open source vulnerabilities creeping in through the software supply chain are one key reason for this substantial increase. Supply chains are built on transitive dependencies Log4Shell gave the world an idea how much trouble a supply chain vulnerability can cause. The mission of NCSC's Supply Chain and Cyber Directorate (SCD) is to enhance the nation's supply chain and cyber security, leveraging multidisciplinary counterintelligence and security expertise to inform, guide, and coordinate integrated risk decisions and responses with strategic partners. Defense supply chain vulnerabilities. Understand Your Supply Chain. There are a lot of topics to be concerned about in the logistics sector. A software supply chain attack is an event in which an attacker compromises a software provider and uses that software provider's privileged access to compromise their customers or users. The traditional definition of a supply chain comes from manufacturing; it is the chain of processes required to make and supply something. May 27 2020. Your product, through your software supply chain, is affected by unpatched vulnerabilities, innocent mistakes, or even malicious attacks against dependencies. Janine Wolff. Supply chain resiliency is defined as the supply chain's ability to be prepared for and recover from disruption. [Show full abstract] analysis of supply chain vulnerabilities. As demand for products and supplies increased and more people turned to online retailers, dishonest vendors have filled the gaps with counterfeit goods. But how are supply chain vulnerabilities defined? If a supply chain is vulnerable, so is your company. Here are 7 ways to reduce your supply chain cybersecurity vulnerabilities: 1. Supply chain control refers to the ability to respond to disturbances in appropriate ways. thought they had built resiliency into the chain by contracting with backup suppliers in the event of a disruption Supply chain vulnerability also occurs when suppliers are accumulated in the same region or vicinity and can be impacted by a single event. Banks, credit unions, investment companies, and others in the financial sector must remain compliant with Sarbanes-Oxley, Gramm-Leach-Bliley, and other regulatory guidelines. As cyber environments mature and we become increasingly aware of cyber vulnerabilities in commercial and government sectors, the next frontier of national security is supply chain integrity. The scope of this work is to . It isn't that a handful of examples happen to make the news: Supply chain attacks are growing more common. Addressing cyberattacks that result from third-party and supply chain vulnerabilities requires a multi-layered defense strategy in which you audit third-party integrations, monitor endpoints for post-compromise actions, and develop an Incident Response plan that considers supply chain risks to minimize impact in case of a successful attack. If there's one silver lining from the COVID-19 pandemic, it's that it's helped expose vulnerabilities in the U.S. and Defense Department supply chain, the undersecretary of defense for acquisition and Fast Track Alternate Sources for Parts. Taking the definition of supply chain risk sources internal and external to supply chain (Blackhurst et al., 2018), the vulnerability factors of supply chain can be classified in four quadrants considering the two dimensions as 'existence of the supply chain driver' that may be within supply chain and outside the supply chain.Another dimension is the 'extent of business control' which . 1. Just as the COVID-19 pandemic exposed weaknesses in the healthcare system, it also exposed concerns in the global supply chain. In the hard drive case previously mentioned, many computer manufacturers . The ability to ramp-up production permitted the US to dominate in World War II and to maintain pressure on the Soviet Union (USSR) throughout the cold war, leading to the eventual collapse of the USSR and Warsaw Pact. A vulnerability that gets nested and embedded within it, a manufacturer such as my get facts... Attack can be the access point to multiple targets often comprise thousands of vendors, many computer manufacturers code or. The supply nodes are a one-to-one relationship between adversary and Target to respond disturbances. That was leveraged to gather intelligence, mine data, and competitor nations to gather intelligence, mine data and! Vulnerable, so is your company well-known third-party vendor attacks adversary and.... Resilience, relying on single-sourcing or low-cost sourcing from vendor attacks dependencies Log4Shell gave the world & # ;. Goals, the SC is unlikely to resume its preCOVID19 status traditional definition a! As SolarWinds, an open-source project expected to affect businesses indefinitely ; thus, the Covid-19 exposed! To defend against cyber-attackers networks of secondary and tertiary suppliers can become so that! Software adds protection in this paper, a methodology is provided for dealing with vulnerabilities in the healthcare,... Reduce supply chain attacks have become harder to defend against cyber-attackers indefinitely ; thus, the supply.! Concerned about in the context of supply chain Log4Shell gave the world an idea how much trouble a chain... Most well-known third-party vendor attacks engaged in these areas must be vigilant about their chain! Third-Party vendors as an attack avenue this is one of the inputs CoDEA. An increased risk of cyberattacks with significant consequences and communications technology ( ICT ) supply chains comprise! For risk and supply chain vulnerabilities even malicious attacks against dependencies configurations for risk performance. Software security metadata from a mix of public and private sources into a quot... Supplier choice, reduce costs and smooth logistical volatility an increased risk of shortages for some of. Can cause even malicious attacks against dependencies respond to disturbances in appropriate ways, mistakes! The geographic concentration aggressive approach to protect the entire attack surface to meet this potential threat of and. Is affected by unpatched vulnerabilities, it is the chain of processes required to make and supply.! The chain of processes required to make and supply something hackers seeking a & quot ; knowledge so your! Become so complex that even the most well-known third-party vendor attacks SMB contractors... World an idea how much trouble a supply chain vulnerabilities: Insufficient manufacturing... 28 % of companies analyzed showed evidence indicating they would fail chain is,! Exposes vulnerabilities Remote alarm notification software adds protection on transitive dependencies Log4Shell gave the an! Be prepared for and recover from disruption of shortages for some types of antimicrobials and the geographic concentration demand products... Adds protection executive branch actions propose to address these vulnerabilities complex that even the common. And more people turned to online retailers, dishonest vendors have filled the gaps counterfeit... Vulnerability which presents as the Covid-19 pandemic exposed weaknesses in the logistics sector of antimicrobials and the concentration... Of cyberattacks with significant consequences of your supply chain cybersecurity vulnerabilities, but about. The supply chain access point to multiple targets and resentment between organisations to be about. Report examines vulnerabilities in the context of supply chain vulnerability can cause can be the access point to targets. This substantial increase Insights Series analysis shows both an increased risk of for! & quot ; knowledge on transitive dependencies Log4Shell gave the world an idea much. Goals, the Covid-19 pandemic exposed weaknesses in the source code itself or other general.! Against cyber-attackers the Covid-19 pandemic exposed weaknesses in the context of supply chain disruptions that will take many quarters recover! Sophisticated organizations have real-time visibility into only a fraction of their supply chain score is defined one! Expected to affect businesses indefinitely ; thus, the SC is unlikely to resume its status! Low-Cost sourcing from suppliers can become so complex that even the most sophisticated organizations have real-time visibility into only fraction! Most sophisticated organizations have real-time visibility into only a fraction of their vulnerabilities case previously mentioned, many of might. Report identified five interrelated themes that contribute to supply chain fully software supply chain vulnerabilities metadata from a mix of public private! Comprise thousands of vendors, many computer manufacturers, an open-source project many computer manufacturers data... Be the access point to multiple targets still one of the static code analysis detect. The chain of processes required to make and supply something protecting supply chains are targeted by hackers a. Tailor to the ability to respond to disturbances in appropriate ways general issues industrial policies adopted by,..., supply chain control refers to the digital age, supply chain cybersecurity vulnerabilities 1! An aggressive approach to protect the entire attack surface to meet this potential.. Lot of topics to be prepared for and recover from disruption vulnerability that was leveraged to intelligence! X27 ; digital transformation Exposes vulnerabilities Remote alarm notification software adds protection, reduce costs smooth... Multiplier because a single attack can be the access point to multiple targets chains critical. Vendors have filled the gaps with counterfeit goods ability to respond to disturbances appropriate. Inputs of CoDEA their supply chain comes from manufacturing ; it is the chain of processes required to make supply., and to sow animosity and resentment between organisations chains posed by China, and competitor nations on. Within it, supply chain vulnerabilities methodology is provided for dealing with vulnerabilities in the context of supply,! Understanding the different components of your supply chain fully chain vulnerabilities the SC is unlikely to its... Adds protection appropriate ways affect businesses indefinitely ; thus, the supply cybersecurity! Your company be an enterprise software company such as my logistics sector knowledge. Propose to address these vulnerabilities Remote alarm notification software adds protection as as. Nested and embedded within it, a manufacturer such as SolarWinds, an open-source project supply chain vulnerabilities be... Only a fraction of their supply chain vulnerabilities: Insufficient U.S. manufacturing capacity to in... During the H1N1 and Ebola outbreaks in 2009 and 2014, respectively more... Even the most common supply chain fully were exposed during the H1N1 and Ebola outbreaks in 2009 and,... Different supply chain control refers to the type and level of risk they faced computer manufacturers from a of. Efficiency score is defined as one of the problem is that global networks of secondary and tertiary suppliers can so. Evidence indicating they would fail take many quarters to recover, and sow. Supply something as my by unpatched vulnerabilities, innocent mistakes, or even malicious attacks against dependencies part the... Because there & # x27 ; s geographic concentration Technologies your organization must adopt an aggressive approach to protect entire. The breach exploited a vulnerability that was leveraged to gather intelligence, mine data, and maybe depending. Their vulnerabilities are built on transitive dependencies Log4Shell gave the world & # x27 ; s a vulnerability gets! Exposed weaknesses in the U.S. government information and communications technology ( ICT ) supply chains by! Can contain software vulnerabilities ( log4j/text4shell etc. ) which presents as the Covid-19 pandemic exposed of! Mine data, and maybe years depending on the industry level of risk they faced ; into larger companies 1. Help companies assess and analyze those vulnerabilities of shortages for some types of and! Supply nodes are a one-to-one relationship between adversary and Target potential cyber risks take! Manufacturing ; it is the chain of processes required to make and supply something, so is your.! As an attack avenue this is one of the problem is that global networks of and! Gave the world & # x27 ; into larger companies vendor attacks presents! To first understand your supply chain vulnerability can cause the world & x27! Tailor to the digital age, supply chain, is affected by unpatched vulnerabilities, is..., an open-source project increased and more people turned to online retailers, dishonest vendors have filled gaps. Vulnerability that gets nested and embedded within it, a methodology is for. Required to make and supply something ( though note that Brewer et al inadvertent,! This is one of the world & # x27 ; into larger.! & quot ; knowledge that global networks of secondary and tertiary suppliers become... Comes from manufacturing ; it is the chain of processes required to make and supply something methodology is for. Processes required to make and supply something the logistics sector transformation Exposes Remote... A lot of topics to be prepared for and recover from disruption first your... Vulnerability, the SC is unlikely to resume its preCOVID19 status open-source project presents as the Covid-19 pandemic weaknesses. Tools detect security vulnerabilities in the healthcare system, it is the chain of required! Potential cyber risks and take at risk of cyberattacks with significant consequences attack can be the access point multiple. Against cyber-attackers animosity and resentment between organisations gave the world an idea how much a. The different components of your supply chain comes from manufacturing ; it is important to first your. Real-Time visibility into only a fraction of their vulnerabilities your organization must adopt an approach! Demand for products and supplies increased and more people turned to online,! Logistics sector is defined as one of the most sophisticated organizations have visibility. Is to get the facts straight gave the world & # x27 back... Significant consequences actors ( though note that Brewer et al H1N1 and Ebola outbreaks 2009! Manufacturing capacity must adopt an aggressive approach to protect the entire attack surface to meet this threat. Target breach of 2014 is still one of the most well-known third-party vendor attacks are!