What is Supply Chain Risk Management (SCRM)?

Supply chain risks can arise from a wide variety of sources, including natural disasters, geopolitical tensions, supplier failures and cyber threats.

Key components of an effective SCRM strategy include:

• Risk Identification: Recognizing potential risks that could impact the supply chain, such as supplier insolvency, transportation delays, or regulatory changes.
• Risk Assessment: Evaluating the likelihood and potential impact of identified risks to prioritize mitigation efforts.
• Risk Mitigation: Implementing strategies to reduce or eliminate identified risks, such as diversifying suppliers, increasing inventory levels, or enhancing cybersecurity measures.
• Monitoring and Review: Continuously monitoring the supply chain for emerging risks and reviewing mitigation strategies to ensure their effectiveness.

In the context of cybersecurity, Cybersecurity SCRM (C-SCRM) involves assessing and managing risks associated with third-party vendors and service providers. These includes evaluating a third-party’s security practices, ensuring compliance with relevant standards and establishing clear communication channels for incident response. NIST 800-161 is the default “gold standard” for C-SCRM practices and leverages controls found in NIST 800-53 R5.