Building a supply chain resilient to cyber threat

Recent high-profile cyberattacks, including those affecting Jaguar and Heathrow, have highlighted a critical truth: cyberattacks don’t just impact the targeted organisation—they can ripple through the entire supply chain.

For small and medium-sized enterprises (SMEs), it's tempting to think, “It won’t happen to us”. But when a key client or supplier is affected, the consequences can be severe, sometimes pushing smaller firms to the brink of insolvency and disrupting operations far beyond the initial attack, leading to devastating loss.

Insurance alone won't eliminate supply chain risk

Even if your business has conducted a thorough risk assessment, transferred risk via cyber insurance, and included loss-of-earnings clauses, these measures only protect your organisation directly. They do not safeguard your suppliers or customers. If a specialised supplier depends on your business and a cyber incident disrupts your operations, they may not survive. Even if a supplier does survive, rebuilding operational capacity and retaining skilled staff is likely to be costly.

Insurance and contractual penalties can’t fully mitigate the real-world consequences of a cyber incident. So, how can organisations build resilience and manage risks across their supply chain?

Treat breaches as inevitable

All organisations should adopt a mindset of “how quickly could we recover?” rather than hoping breaches just won’t happen to them.

Even if full-scale resilient IT models aren't within your budget, understanding the cost of strengthening resilience vs. the cost of failure is a crucial first step. Cybersecurity isn’t just about prevention—it’s about being able to respond and recover effectively when something goes wrong.

Human error remains the weakest link

Phishing and social engineering attacks, especially when users have administrator privileges, are still the most common vulnerability. Employees are often trained to spot phishing emails, but rarely against risks from seemingly innocent actions, like sharing credentials or plugging in unapproved hardware.

Practical measures to reduce risk

Building true resilience to cyber threat takes time and resources, but there are plenty of controls and measures you can implement today to reduce risk:

• Limit user privileges and access to reduce mistakes that could escalate into breaches.
• Enforce two-factor authentication and program allow-listing to block unauthorised software.
• Implement active defences, such as an internal or contracted Security Operations Centre (SOC)—a digital “guard” monitoring your systems around the clock.
• Develop incident response and business continuity plans to minimise disruption time and recover faster.
• Test your plans through exercises to ensure they will hold up in a real crisis situation.

Building resilience through a security-first culture

Cybersecurity isn’t just an IT problem - it’s a shared business-wide responsibility. Just like health and safety doesn't happen automatically, digital security requires awareness and accountability when everyone's job is potentially at risk if things go wrong. In recent high-profile cases like Jaguar, even agency staff lost work due to breaches they didn’t cause, showing just how far the impact can reach.

• Equip your IT team with the right technical and fiscal resources to deploy secure systems.
• Conduct spot checks through penetration testing or vulnerability scanning to provide insight on security your IT team can manage.
• Educate your staff through training and integrate security practices into daily operations.
• Recognise that effective security comes at a cost. Allocating funding appropriately will ensure resilience can be maintained in the long-term.

Understanding Supply Chain Risks

Even with robust cyber insurance and contractual clauses, indirect risks from suppliers and customers can be far more challenging to manage. Regardless of insurance and penalty clauses, a supplier cyber security assurance program to review your suppliers can help mitigate these risks by demonstrating a shared commitment to resilience on both sides of the contract. Auditing your suppliers regularly helps to mitigate vulnerabilities within your supply chain that could lead to breaches.

Cyberattacks are inevitable, and the impacts extend beyond your own organisation. By taking a proactive, holistic approach, organisations can reduce the likelihood and impact of cyberattacks and ensure continuity when disruptions occur. 

Get in touch with us today to find out how we can help you build resilience and manage risk across your supply chain.