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As procurement professionals, it's our responsibility to protect against cyber threats, particularly concerning the procurement of goods and services from suppliers. So, let's take a look at how we can do that.
Let's face it - many Procurement Teams lag in this space.
This was one area that I really wanted to go specialise in when I was studying for my Master's Degree = which was cyber and insurance law.-this is one area that I wanted to look at what insurance laws and how do insurers, and I mean like good underwriters, not your, like your basic Avivas, but your car insurance deal with the cyber threats that are coming from, like what can they do?
And this was back in, like, 2013-14; this is what I was trying to pitch my PhD on, like, I thought I was guaranteed to get funding (based on what my sponsor told me). And it didn't come through, and I was really sad. But this meant I didn't spend the next 3-4 years studying and teaching and instead, I got into the World of Procurement.
But I would like to undertake a PhD at some point.
They said it wasn't relevant, but it is relevant now, in 2023, I'm telling you. And that's not even just from a legal perspective; from a procurement perspective, it is super important.
A study by the Center for Strategic and International Studies (CSIS) found that cyber-attacks cost the global economy an estimated $600 billion annually. This highlights the significant impact cyber-attacks can have on businesses and organisations.
A survey by the Chartered Institute of Procurement and Supply (CIPS) found that 80% of procurement professionals believe cybersecurity is essential in their procurement decisions. This demonstrates the widespread recognition of the importance of cybersecurity in procurement.
A study by the National Institute of Standards and Technology (NIST) found that organisations that implemented effective cybersecurity controls experienced a 70% reduction in the likelihood of a cyber attack. This shows the effectiveness of cybersecurity controls in reducing the risk of cyber attacks.
So, how can procurement support cybersecurity efforts? One way is by implementing cybersecurity standards for suppliers, conducting due diligence on suppliers' cybersecurity practices, and requiring suppliers to sign confidentiality agreements. By doing so, we can ensure that we are procuring from suppliers with strong cybersecurity practices.
As the world continues to become increasingly digital, the importance of cybersecurity has never been greater. For procurement professionals, this means taking extra steps to ensure that the goods and services they procure from suppliers are protected from cyber threats. So, how can procurement support cybersecurity efforts?
One way is by implementing cybersecurity standards for suppliers. This ensures that suppliers have strong cybersecurity practices and can protect their goods and services.
Procurement professionals can also conduct due diligence on suppliers' cybersecurity practices and require suppliers to sign confidentiality agreements. By doing so, procurement can ensure that their suppliers are taking all necessary steps to protect the goods and services they provide.
Ultimately, procurement professionals need to have a strong understanding of cybersecurity risks and be able to implement effective controls and safeguards. By implementing cybersecurity standards for suppliers and conducting due diligence on their cybersecurity practices, procurement can help support cybersecurity efforts.
In summary, cybersecurity is an increasingly important consideration in procurement. As procurement professionals, it's our responsibility to protect against cyber threats, particularly concerning the procurement of goods and services from suppliers. By implementing adequate cybersecurity controls and working with suppliers to ensure strong cybersecurity practices, we can reduce the risk of cyber-attacks and protect our organisations.
TL;DR
Procurement professionals must take extra steps to ensure that the goods and services they procure from suppliers are protected from cyber threats. This includes implementing cybersecurity standards for suppliers, conducting due diligence on suppliers' cybersecurity practices, and requiring suppliers to sign confidentiality agreements. By doing so, we can reduce the risk of cyber-attacks and protect our organisations.
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