Understanding the significance of due diligence in supply chain risk management
The pandemic has dominated headlines across the globe in the last couple of years. It wouldn’t be an understatement to say that cybersecurity attacks have been a close second. An Interpol risk assessment report identified a significant surge in cyber security attacks parallel to the COVID-19 pandemic, with supply chain risk exposure attacks and ransomware topping the list. The SolarWinds breach is a case in point, as it has garnered attention for all the right and wrong reasons. Right, of course, given that it has set off alarm bells ringing by awakening the world to the dire need to secure supply chains for the long-term through sustainable measures. The most recent analysis estimates the average cost of a data breach to the tune of $3.86 million, with mega breaches (50 million records or more stolen) reaching $392 million. The increasing use of off-the-shelf and open-source software has probably been one of the primary trigger points, providing more surface area for wide-scale infrastructure attacks. Yet another breach is that of the Apache Log4j, the most extensively used java logging library embedded in almost all our everyday apps, from Twitter to Amazon.
In this current landscape, even with robust laws and legislation in place, you should take some due diligence measures as an organization to prevent bad actors from getting the better out of supply chain frameworks.
How can you prepare, pre-empt, and prevent devastating attacks like the ones mentioned above? The answer truly lies in building a robust and comprehensive due diligence framework that addresses cyber security issues within supply chains from a holistic standpoint.
What value does having a supplier risk due diligence platform bring to you?
Thorough risk assessment: A robust RegTech platform can help keep attacks at bay by proactively identifying potential risks, reporting them on time, and providing evidence-based insightful measures to tackle them. With a thorough risk assessment in place, organizations put themselves above the rest by being appropriately equipped to address adverse effects in the supply chain.
Collaborative compliance: A dynamic due diligence platform can help you keep up with new regulations and compliance issues that are almost an everyday event within the supply chain ecosystem. Embracing RegTech not only helps shift the regulatory burden off the firms; it also helps to significantly cut down costs by consolidating data through reliable unified systems. A robust compliance management tool can free up your everyday load and let you work on more critical organizational goals. You can now focus on improving the customer experience, data protection, and a more secure supply chain system.
360-degree view for increased transparency: Supplier due diligence is the key to a smooth and sustainable supply chain network and security. As a business, you stand at a gain by ensuring the credibility and legitimacy of your suppliers at the outset. Screening, verifying, onboarding, and monitoring your partners and their businesses are essential to achieving greater transparency.
Cost efficiency: A RegTech platform with automation features would typically cut operational costs by precluding the need for manual follow-up of supplier information. By automating data collection to derive, collect, and store data from all the suppliers connected to a specific part in one action, a dynamic due diligence platform can help you save time, resources, and risks when used efficiently.
The business environment is constantly in flux, more so after the pandemic. This naturally translates into organizations opening up to more vulnerabilities within the cybersecurity space. As the first line of defense, a robust due diligence RegTech platform helps you stay up to date with your security checks by working cross-functionally throughout your organization and bringing the much-need checks and balances to keep risks at bay!
Connect with Travanleo now, and reap the benefits of mitigating risks for securing your supply chain.