In every case your brand depends not just on the excellence within your business but on your suppliers – and the risk they present to the strategic values underlying your whole enterprise. One of our clients needs to protect brand value so stringently that it bought the world’s only supplier of its key component.With a multitude of suppliers, however, it is impossible to attain that degree of control. So managing third-party risk becomes more challenging. In some cases, it becomes so overwhelming that businesses prefer to put it off altogether. This is particularly dangerous in the case of supply chain cyber risk, where digitally integrated services mean an error by one supplier can accidentally infect every business it works with. It is a growing concern: as luxury consumers shop increasingly online, analysts forecast that by 2025 this channel will represent 25% of the market’s value, up from 10% in 2018 (Luxury Goods Worldwide Market - Bain & Company).
Vendor risk management (VRM) is therefore fundamental, and to avoid overwhelm requires strategic thinking to minimise risk in a way that protects what matters to you most. Not every risk will be a priority. KPMG surveyed more than 1,000 senior executives for a Third Party Risk Management Outlook and returned astonishing results: 80% said VRM was a strategic priority, but half lacked the in-house capabilities to address it. Yet KPMG noted: “Failures by third parties can rapidly tarnish organisations’ reputations and have significant downstream operational and cost implications.”
Acting on the risks that matter
At C2 Cyber we will work with you to evaluate your supply chain and align it with how you measure the performance of your company, identifying the risks that touch on your core purpose as a business. The greater influence and impact a supplier has on what is most important to your brand, the more urgent the need to mitigate the risk. What are the two or three strategic risks to your organisation? That is where C2 Cyber makes all the difference. We allow our customers to match the effort they put into supply chain risk management with the level of risk itself. We do this by segmenting their supply chain to take into account how much risk each supplier represents. With our proprietary COBRA platform, our clients identify and act on the risks that matter.
Considering supply chain cyber risk as something that matters across the whole scope of a business requires buy-in throughout the company. With the stakes this high, organisations realise that security should be everybody's responsibility – and everybody understands the value of the Chief Information and Security Officer.
It’s what makes C2 Cyber the CISO’s best friend. Call us today to find out more.