With both technology and tech-related threats evolving faster than ever before, supply chain risks have taken on a new meaning in today’s digital world. While traditional supply chain risk management revolved around factors such as strategy, market reality and performance risks, today it must also focus on cybersecurity controls and data breach risk mitigation. As a business owner, you need to carry out due diligence to ensure your supply chain is compliant with data protection regulations.

If your supply chain is non-compliant with regulatory standards, it adds to your business’ compliance risks since regulations will hold you accountable for data breaches arising from vendor security weakness.

Here’s an example of how two major global regulatory standards treat supply chain compliance under their purview:

Remember, it takes years to build your business’ reputation, but just one unfortunate moment to ruin it all.

Continue reading to understand how your supply chain can add to your compliance risks, what challenges you will face while tackling supply chain risks and how you can start ensuring supply chain compliance immediately.

Risks to Watch Out For

While auditing your business and your supply chain for non-compliance, a regulatory agency will scrutinize whether enough has been done to protect the data from falling into the hands of nefarious insiders or cybercriminals.

Here are a few of the most common reasons why your supply chain could be declared non-compliant with data protection mandates laid down by most regulatory authorities:

 Challenges You Must Gear Up For

Constantly monitoring your third-party business partners for possible occurrences of non-compliance can be quite an ordeal. Here are some common challenges you need to be prepared to deal with:

Implementing Effective Supply Chain Risk Management

Implementing powerful and effective supply chain risk management requires continued effort. It is not a one-and-done exercise. Therefore, to start off on the right foot, you need to base your strategy on best practice principles such as:

Unfortunately, with today’s threat landscape being the way it is, you no longer have the luxury of relying on your supply chain’s cybersecurity risk management and compliance purely based on their word. Your business needs to establish and monitor visibility into your supply chain’s commitment to compliance in order to avoid violations and penalties incurred by association. Keep in mind that your inaction could endanger the security of protected data and irreversibly damage your organization’s reputation.

Although all this may seem overwhelming, identifying and mitigating supply chain compliance and cybersecurity risks doesn’t have to be chaotic with the right partner by your side. Reach out to us and let us help you mitigate security and compliance risks from within your supply chain and strengthen your commitment to compliance.

Article curated and used by permission.