In today’s world, checking for cybersecurity risks in small and medium enterprises (SMEs) is key. With over 160,000 IT and communications companies in the U.S., SMEs face big challenges. The Department of Homeland Security says IT threats are growing, putting SMEs at risk.
Most IT SMBs have 100 or fewer employees, making them vulnerable. This shows the need for good risk evaluation plans for these companies.
ICT supply chain risks are many, with six areas being the most critical. These include Cyber Expertise, Executive Commitment, and ICT Supply Chain Risk Management. Resources like CISA Cyber Essentials and NIST Ransomware Resources help SMEs.
Investments in smart manufacturing and digital solutions are also increasing. This makes it even more important to tackle cybersecurity risks early on.
If SMEs don’t check for these risks, they could face big problems. By 2025, 45% of global organizations might face a cyberattack in their supply chain. It’s vital to understand these threats to protect SMEs and keep operations strong.
Understanding Cybersecurity Risks in Supply Chains
The world of cybersecurity is changing fast, posing big challenges for small businesses in their supply chains. These threats are getting more complex and often target smaller companies with fewer resources to defend themselves. It’s reported that 50% of businesses have faced a cyberattack in recent months.
Among them, 74% of big businesses and 70% of medium-sized ones have also been hit. The use of third-party providers makes things even riskier.
The Growing Threat Landscape for SMEs
Small businesses often don’t realize how vulnerable they are to supply chain risks. About one-third of them are unsure about their supplier networks. Supply chain attacks have jumped by 430% from 2019 to 2020, according to Marsh McLennan.
Software supply chain attacks have also quadrupled from 2020 to 2021. This shows how urgent it is for SMEs to strengthen their defenses. A World Economic Forum survey found that 88% of respondents worry about the cyber resilience of SMEs in their networks.
Categories of Cybersecurity Risks
To tackle the ICT supply chain risk management, organizations must know the main types of cybersecurity risks:
- Cyber Expertise: Companies need the right knowledge and skills to handle cyber risks.
- Executive Commitment: Leaders are key in creating a culture of cybersecurity awareness.
- ICT Supply Chain Risk Management: A thorough approach is needed to keep the supply chain safe and secure.
- Single Source Supplier: Relying on one supplier for key products and services is risky.
- Supplier Disruption: Disrupting a supplier can cause severe data breaches or operational failures.
- Supplier Visibility: Knowing about third-party cybersecurity practices is vital for managing risks.
Even though bigger organizations are more aware of cybersecurity risks in their supply chains, only 13% of them check the risks of their immediate suppliers. This number goes up to 27% for medium businesses and 55% for larger ones. SMEs need to focus on risk assessments more. As they become more important in global supply chains, they must tackle these risks to survive and stay resilient.
How to Evaluate Cybersecurity Risks in SME Supply Chains
In today’s world, 89% of companies have faced supplier risk events in the last five years. It’s vital for SMEs to do thorough risk assessments. These help spot weaknesses and understand threats in their IT systems.
It’s best to check your cybersecurity regularly, like every year. This lets businesses see how strong they are and fix any weak spots early. With the rising costs and complexity of supply chain issues, this is more important than ever.
Conducting Complete Risk Assessments
For SMEs, it’s key to regularly check the cybersecurity of their supply chain partners. Cyber threats like data leaks and malware attacks are common. They can cause big problems, like higher costs and delays in making products.
By checking their suppliers, small businesses can protect themselves from attacks. These attacks often target weak spots in external systems.
Using Frameworks and Best Practices
Frameworks like the NIST Cybersecurity Framework offer great advice for SMEs. They help improve how businesses check their cybersecurity. The National Institute of Standards and Technology keeps updating these resources to help build stronger supply chains.
Using these frameworks helps businesses deal with cyber attacks better. It also helps create a strong cybersecurity culture. By focusing on supply chain security, SMEs can work more efficiently, reduce risks, and stay ahead in the market.
