You can't eliminate supply chain risk, but you can manage it. Assess vendor security before contracting, limit what vendors can access, monitor for compromises, and have a plan for when (not if) a supplier is breached.
Quick answer: You can't eliminate supply chain risk, but you can manage it. Assess vendor security before contracting, limit what vendors can access, monitor for compromises, and have a plan for when (not if) a supplier is breached.
Why Supply Chain Attacks Work
Attackers have learned:
- Direct attacks on hardened targets are difficult
- Suppliers often have weaker security
- One compromised vendor = access to many victims
- Software supply chain = automatic distribution to targets
- MOVEit (2023): File transfer software vulnerability hit thousands of organisations
- 3CX (2023): Compromised business phone software distributed malware
- SolarWinds (2020): Infected updates reached 18,000 organisations
- Kaseya (2021): MSP software used to deploy ransomware to customers
Types of Supply Chain Risk
Software supply chain:
- Compromised software updates
- Malicious code in open-source libraries
- Backdoored development tools
- MSPs and IT providers (like us) with access to your systems
- Cloud services holding your data
- Outsourced business processes
- Tampered equipment
- Firmware compromises
- Counterfeit components
- Third parties with data access
- Integration partners
- Contractors and consultants
Managing Third-Party Risk
1. Know your suppliers
Inventory:
- All vendors with system access
- All vendors with data access
- All software and where it comes from
- All cloud services
- Critical (system access, sensitive data)
- Important (business dependency)
- Standard (limited access/data)
2. Assess before contracting
Due diligence questions:
- What certifications do they hold? (ISO 27001, SOC 2, Cyber Essentials)
- How do they protect your data?
- What's their incident response process?
- Will they notify you of breaches?
- What's in their security questionnaire?
- Critical vendors: Detailed assessment, possibly audit rights
- Important vendors: Security questionnaire
- Standard vendors: Basic checks
3. Contract for security
Include:
- Security requirements
- Breach notification obligations (timeframes)
- Audit rights
- Subcontractor controls
- Incident cooperation
- Exit provisions (getting data back)
4. Limit blast radius
Principle of least privilege:
- Minimum access necessary
- Segment vendor access
- Separate credentials
- Monitor privileged access
5. Monitor continuously
Ongoing visibility:
- Monitor vendor access to your systems
- Track security posture changes
- Watch for vendor breach notifications
- Subscribe to threat intelligence
6. Plan for vendor breaches
When (not if) a supplier is breached:
- How will you know?
- What's your response process?
- Can you isolate their access quickly?
- Who makes decisions?
Quick Assessment
Ask yourself:
- Do you have a complete vendor inventory?
- Are critical vendors formally assessed?
- Do contracts include security terms?
- Can you revoke vendor access quickly?
- Would you know if a vendor was breached?
What We Help With
Third-party risk management:
- Vendor inventory and classification
- Security assessment frameworks
- Due diligence questionnaires
- Contract security terms
- Privileged access management for vendors
- Network segmentation
- Monitoring and alerting
- Incident response for vendor-related breaches
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about third-party risk management.
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