The Security Impact of Supply Chain Management

        The tactics and intensity of Zian attacks are increasing day by day. In addition to directly invading the company, hackers will also choose to start from their cooperating suppliers, causing significant losses to the enterprise. Recently, the supply chains of TSMC and American software company SolarWinds have been repeatedly compromised, leading to renewed discussions on the issue of supply chain security management. Why are there security vulnerabilities in the supply chain? How should enterprises take precautions? This issue of 'Le Huo Ren' will provide you with in-depth explanations.

        Looking at Supply Chain Asset Security from the Perspective of Bucket Theory

                On June 30, 2023, a news flash appeared: "The ransomware lockbit hacker claimed to have invaded TSMC and extorted USD 70 million from them." According to investigations, this incident was caused by the hacker's intrusion into TSMC's IT hardware supplier, as the supplier did not update the firewall version in a timely manner, used weak passwords, and did not properly mask the customer name, allowing the hacker to exploit it. The news not only shook the Taiwan security industry, but also made the business community realize the importance of supply chain security management once again.

        Coincidentally, the US software company SolarWinds has also experienced a supply chain attack recently. Its monitoring and management platform SolarWinds Orion was hacked, and through the update of its Trojan program, tens of thousands of enterprise organizations around the world were affected. It was rated as one of the largest security attacks in recent years and also revealed a vulnerability in one supplier, which may affect the entire supply chain and cause huge losses to the enterprise. This incident has sparked discussions on supply chain security risk management, and the US government has requested suppliers to provide a detailed Software Bill of Materials (SBOM) to improve the transparency and information security of the software supply chain.

        In the field of information security, there is a "wooden barrel theory": a wooden barrel made of wooden boards, its maximum water capacity does not depend on the longest wooden board, but on the shortest one. When applied to asset security protection, the level of each link in the supply chain must be consistent, and any situation can lead to fatal consequences. Therefore, enterprises must strengthen asset security management in all aspects and ensure that suppliers also comply with relevant measures.

        Build a complete asset security defense line

        In fact, there is an increasing emphasis on supply chain asset security management internationally. Since 2002, the United States has implemented the C-TPAT (Customs Trade Partnership Against Terrorism) developed by the Department of Homeland Security's Customs and Border Protection Agency. It hopes to work with relevant industries to establish a supply chain security management system to ensure transportation and cargo security from start to end, and provide cybersecurity recommendations to protect intellectual property rights, customer information Financial and trade data... are important information assets for companies.

        With the acceleration of globalization and the advancement of digital transformation, the number of stakeholders in the supply chain has also increased, resulting in more funding security attack gaps. Therefore, in addition to strengthening their own asset security management, enterprises also need to work closely with suppliers, implement effective asset security management systems, and create a complete asset security defense line from within the company to the supply chain.

        Nowadays, information security is not just an added value of products, but a part of them. Taking Coca Cola as an example, the company uses Security Scorecard's asset security risk management tool to control and measure suppliers' asset security risks. Suppliers must have comprehensive information security measures to win customer trust, thereby enhancing their corporate image and increasing customer loyalty.

        Stay alert to prevent damage

        The security management of the supply chain has a direct impact on individuals, families, and businesses. For individuals, consumers may experience personal information leakage due to insufficient security measures taken by companies or suppliers during the purchase of daily necessities. Therefore, they should remain vigilant, use products and services provided by trustworthy suppliers, and comply with relevant security recommendations to ensure the security of personal information and privacy.

        At the household level, many people use smart home devices such as smart lighting and security monitoring systems, which are closely connected to the supply chain. If the supplier's security measures are not perfect, the home network may be invaded by hackers, endangering the safety and privacy of their families.

        For enterprises, supply chain security management directly affects operations and reputation. A secure supply chain can ensure product and service quality and reduce the damage caused by security attacks.

        In summary, supply chain security management is not only related to the interests of enterprises, but also to the safety of individuals and families. Whether purchasing products, using services, or choosing partners, the security status of the supply chain should be considered. Only when all links are maintained at a high level of security can a safer digital world be constructed. Faced with the constantly changing information age, both enterprises and individuals must work together and continue to grow, making information security a strong support for us.

        Image source: freepik

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