The cyber supply chain — a network of interconnected hardware, software, services, and processes that enable supply chain digital operations —is integral to an organization’s operations. However, this interconnectedness introduces a range of vulnerabilities that can be exploited. Addressing these vulnerabilities is crucial, and if cyber security isn’t a core competency of the organization, managed services can offer an effective solution. This article highlights key vulnerabilities in the cyber supply chain, the role of managed services in reducing these risks, and examples of recent high-profile incidents that underscore the importance of these measures.

Key Cyber Supply Chain Vulnerabilities

1.Third-Party Risks: Reliance on external software vendors is often a strategy for organizations needing turn-key solutions for services like anti-virus and remote systems management. However, adopting these 3rd party solutions means adopting any risk associated with these solutions. In 2020, in an attack named “SolarWinds”, hackers compromised a commonly used network management tool to deliver malicious malware to more than 30,000 public and private networks worldwide that used the compromised network management tool.

2.Lack of Transparency: Software powers every link in the supply chain, from CNC machines to networks supporting digital connections with suppliers. Lacking visibility into those systems, companies don’t have an idea of the risk exposure. In 2021, hackers exploited a commonly used software platform from Kaseya and used that platform to encrypt end-user devices, charging a ransom to impacted users to decrypt impacted systems. In this example, if your third-tier supplier was being held ransom, your ability to deliver might be at risk.

3.Complexity and Interdependencies and Single Point of Failure: Modern supply chains involve multiple layers of suppliers, increasing the attack surface. In some instances, every link in the supply chain may be leveraging the same software or processes. If that software is compromised, every link is impacted. The 2024, organizations using Microsoft software were impacted by CrowdStrike software outage. While the impact is still being debated, more than 7000 flights were cancelled or delayed and healthcare, retail and hospitality industries were shut down for several hours.

4.Inadequate Security Practices: Smaller enterprises may not have capital or talent to adequately secure network connections and digital assets. These weak security protocols can serve as entry points for cyberattacks, potentially impacting upstream and downstream connections.

5.Insider Threats: An insider is a person, employee or contractor, who has or had authorized access to an enterprise’s resources. This could be through badge access to a facility, network access or access to assets ranging from laptops to CNC controllers. An insider can use their authorized access or understanding of an organization to intentionally or unintentionally harm that organization.

The Value of Managed Services

Managed services can reduce risk and improve resiliency by offering cost effective access to expertise that an organization might not have in house, or for non-core capability an organization doesn’t want to develop:

• Risk Reduction: By offering continuous monitoring of digital assets and vendor risk management, managed services enable early threat detection and informed vendor choices, reducing the likelihood of breaches associated with lack of transparency and third-party risks across the cyber digital supply chain.
• Cost Savings: Economies of scale and predictable subscription models make advanced cybersecurity tools accessible for budget-conscious enterprises.
• Improved Resilience: Disaster recovery, business continuity planning, and regulatory compliance may not be a core competency for many organizations. Managed services can help organizations maintain operations and avoid penalties
• Access to Expertise: MSPs offer specialized knowledge and training programs, ensuring organizations stay ahead of evolving threats and enhance internal security awareness.

Conclusion

The cyber supply chain is a critical but vulnerable aspect of modern infrastructure. Managed services can provide essential tools and expertise that may not be in-house. As cyber threats become more sophisticated, organizations that leverage managed services will be better equipped to protect their assets, maintain business continuity, and thrive in an increasingly digital world.