Supply Chain Cybersecurity Beyond Traditional Vendor Risk Management

Malleswar Reddy Yerabolu, Senior Security Engineer, North Carolina Department of Health and Human Services

October 18, 2024

5 Min Read

Source: Olekcii Mach via Alamy Stock Photo

COMMENTARY
In today’s interconnected digital landscape, supply chain attacks are no longer an anomaly — they’re a persistent, growing threat. From SolarWinds to Kaseya, high-profile breaches have demonstrated that attackers are increasingly exploiting vulnerabilities in the supply chain to infiltrate targets at scale. For cybersecurity professionals, the days of relying on traditional vendor risk management are over. A broader, more proactive approach to securing the supply chain is required — one that goes beyond checklists and questionnaires.

The Shortcomings of Traditional Vendor Risk Management

Historically, organizations have relied on static risk assessments and due diligence processes to evaluate their suppliers. This involves vetting vendors using questionnaires, compliance audits, and sometimes even on-site assessments. While these methods help ensure compliance with industry regulations and basic cybersecurity hygiene, they are no longer enough to combat today’s sophisticated supply chain attacks.

The major flaw of traditional vendor risk management is that it assumes security is a one-time evaluation rather than an ongoing process. A vendor might pass an initial audit, but what happens when it updates its software or onboards a third-party subcontractor? Additionally, static assessments rarely account for zero-day vulnerabilities or the rapid evolution of threat landscapes. In short, by the time an assessment is complete, the information is often outdated.

Proactive Supply Chain Monitoring: A New Paradigm

A more effective approach to supply chain security involves continuous, real-time monitoring of vendors. Rather than waiting for the next audit or questionnaire cycle, organizations should be leveraging tools that provide up-to-date visibility into their vendors’ cybersecurity postures.

There are several ways this can be accomplished:

• Third-party risk management platforms: Platforms like BitSight and Security Scorecard allow organizations to monitor the external security posture of their vendors continuously. These platforms aggregate data from public sources, including open vulnerabilities, SSL configurations, and even mentions of potential breaches, to give security teams real-time insights into potential risks.

• Threat intelligence integration: By integrating threat intelligence feeds into the vendor risk management process, organizations can identify whether any vendors are being actively targeted by attackers, or if their infrastructure is compromised. This dynamic approach goes beyond static questionnaires, allowing organizations to act quickly in response to emerging threats.

• Continuous penetration testing: Routine penetration testing is no longer a luxury; it’s a necessity. Regular testing of vendors’ systems ensures that vulnerabilities are identified and mitigated before attackers can exploit them. With the increasing automation of penetration testing tools, this process can be made continuous rather than sporadic.

Blockchain for Enhanced Supply Chain Transparency

Another innovative solution to supply chain security challenges is the use of blockchain for transparency and traceability. Blockchain technology allows for the creation of immutable audit trails, making it possible to trace the origin of every component in the supply chain. This can be especially valuable in industries like pharmaceuticals or critical infrastructure, where counterfeit products or compromised components can have catastrophic consequences.

By using blockchain, organizations can verify that every link in the supply chain adheres to security standards and hasn’t been tampered with. In addition, smart contracts on blockchain can enforce compliance, triggering alerts or even actions (such as revoking access) when deviations from agreed-upon standards occur.

Managing Access: A Dynamic Approach to Vendor Permissions

One critical element of supply chain cybersecurity that is often overlooked is how vendors access internal systems. Traditional models grant vendors broad access to systems and data, often far beyond what is necessary. This presents a significant risk, as compromising a single vendor’s account could grant an attacker the keys to an organization’s entire network.

A more dynamic approach involves implementing zero-trust principles, where vendors are granted the minimum necessary permissions, and access is constantly reevaluated. This can be done through:

• Granular access control: Leveraging role-based access controls (RBAC) or even attribute-based access controls (ABAC) ensures that vendors have access only to the resources they need at any given time.

• Behavioral monitoring: Continuous monitoring of vendor behavior within your systems can help detect abnormal activity that might indicate a compromise. AI-driven anomaly detection tools can provide early warning signs that a vendor’s account has been hijacked.

• Just-in-time access: Some organizations are adopting just-in-time (JIT) access, where vendors are granted temporary access to systems only when required, and access automatically expires after a predefined period. This minimizes the risk of persistent backdoors being left open.

Collaboration Across the Supply Chain

Lastly, improving supply chain security requires collaboration between all stakeholders. Organizations must foster a culture of shared responsibility, where security is not viewed as the sole responsibility of individual vendors but as a collective effort. This can be achieved through:

• Security scorecards for vendors: Regularly sharing security posture reports with vendors encourages transparency and accountability. These reports can highlight areas where vendors need to improve and set clear expectations for remediation.

• Vendor security workshops: Hosting workshops or training sessions for vendors can help elevate their understanding of modern security practices and ensure that their teams are equipped to mitigate risks.

A Call to Action

The time has come for cybersecurity professionals to rethink their approach to supply chain security. Traditional vendor risk management practices are no longer sufficient in today’s threat landscape. By adopting continuous monitoring, leveraging blockchain for transparency, and implementing dynamic access control, organizations can build more resilient supply chains that are harder for attackers to compromise.

Ultimately, securing the supply chain is not just about protecting your vendors — it’s about safeguarding your entire business ecosystem.

About the Author

Senior Security Engineer, North Carolina Department of Health and Human Services

Malleswar Reddy Yerabolu is a senior security engineer with more than seven years of experience in vulnerability management, threat analysis, and security architecture across financial, hospitality, government, and communication sectors. He specializes in leveraging AI, machine learning (ML), and natural language processing (NLP) to enhance threat detection and automate security processes. His research focuses on integrating AI and NLP to optimize cybersecurity solutions. Malleswar’s innovative approach helps organizations reduce risks and strengthen their defenses against evolving cyber threats. He holds a master’s degree in computer engineering from California State University.