What is Supply Chain Risk Management in Cybersecurity?
Supply Chain Risk Management (SCRM) in cybersecurity is the process of identifying, assessing and mitigating cybersecurity and data protection risks within a company's supply chain to ensure continuity of operations and minimize potential disruptions. Cybersecurity-related 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 supply chain risk management in cybersecurity 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 Supply Chain Risk Management (C-SCRM) involves assessing and managing risks associated with third-party vendors and service providers. This 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.