Organizations have believed that procurement has nothing to do with cyber security. For decades now, the management has been negligent towards its IT and cyber security needs, often putting it on the back burner. They seldom realize that cyber-attacks and security breaches are threatening issues that have catastrophic consequences. These organizations have adopted digital technology and embraced big data analytics in procurement, which puts them in a vulnerable position. Big data in procurement translates to a huge pile of data that allows procurement professionals to identify cost saving opportunities, forecast trends and developments, determine risk factors and thereby mitigate potential risks in the supply chain. The growing popularity of big data in procurement only makes the organizational supply chain vulnerable to cyber-crimes and puts large volumes of sourcing and purchase data like supplier contracts, financial details and invoices at risk.
Recent Ransomware Cyber Attacks – The Organizational Security Breach
Today, organizations gradually realize the importance of having a robust and updated cyber security solution in place. Why so, you ask? Well, in the light of the recent cyber-attacks, WannaCry ransomware and Petya ransomware, that brought the business houses and government organizations across the globe to a halt. The ransomware cyber-attacks did not only corrupt the systems of leading global businesses like Maersk shipping line, Mondelez and Nissan manufacturing UK, but also government banks, state power utility and metro stations in Ukraine, including the nuclear radiation monitoring system at the Chernobyl site. These cyber-attacks are proof enough for the organizations to realize where they stand with regard to securing their IT infrastructure. It is not only the procurement function that is at risk, but the entire organization’s data is out there, vulnerable to hacking threats and security breaches.
Cyber Security and Procurement – Why You Should Take Note?
Governments and organizations should realize that with the growing adoption of digital mediums, technology advancements, easy access and data availability, their business information and procurement data is at high risk. The only way to protect the business especially the procurement function is by taking their cyber security game a notch higher. In order to beef up the IT infrastructure and cyber security, organizations should keep the following in mind,
- Companies must implement cyber security solutions that offer up-to-date security measures and mechanisms, prevent unauthorized access to data and continously monitor security status and procedures.
- The procurement function should collaborate with the IT department to regularly monitor systems, frequently update internal policies and create a security fence for the organization.
- Develop a contingency disaster recovery and continuity framework by insuring the organization’s supply chain network with insurance policies that cover cyber risks and threats.
- Assess the security parameters followed by suppliers, avoid data thefts by assisting them to build a robust cyber security plan and thereby help the vendor to strengthen their IT infrastructure and cyber security.
- The key to a tough security mechanism is to stay updated on the latest innovations in the cyber security space and ensure that the IT systems and infrastructure are regularly updated.
Gradually, organizations have realized the importance of protecting themselves against cyber-attacks and data thefts. This has led to an increased investment in the global cyber security market, as procurement managers are increasingly turning to an extensive range of cyber security solutions and services that match their data sensitivity levels, procurement practices and business processes. At SpendEdge, we offer supply market intelligence solutions that provide actionable insights to all procurement and security related questions. Thus, facilitating organizations to make the right choice and ensuring the security of the client’s IT infrastructure.
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