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Cybersecurity Risks in OT Supply Chains
24/4/2025​
Industrial companies often rely on intricate networks of OT (Operational Technology) systems, suppliers, and outsourced services. However, they remain responsible for their security, irrespective of where cyber threats originate. Breaches can have far-reaching effects beyond operations, leading to financial and reputational losses, such as customer distrust and reduced shareholder value.
Third-Party Risks in OT Cybersecurity
Organizations frequently depend on external partners for system management, maintenance, and security, introducing several risks:
System Malfunctions
Operational disruptions due to third-party failures to follow security protocols.
Data Exposure
Poor security measures can compromise sensitive industrial data, causing financial and reputational harm.
Reputational Damage
Public and stakeholders often hold the primary company accountable for security failures by third parties.
Stock Market Impact
Cyber incidents can lead to immediate drops in stock value
Customer Trust & Retention
Losing sensitive data can result in customer attrition.
Ensuring Third-Party Security Compliance
Companies must actively evaluate and manage their third-party service providers' cybersecurity practices. Regulations like the NIS2 Directive impose stricter supply chain security requirements. Non-compliance can result in severe legal and financial repercussions, making it essential to enforce robust security measures with all partners and suppliers.
Mitigating OT Supply Chain Risks
Objective Evaluation and Risk Management
Engage external organizations to assess third-party security measures for unbiased insights. Regular security assessments and audits help mitigate potential reputational and financial risks before they escalate.
1
Continuous Improvement
Encourage partners to continuously enhance their security practices to address emerging threats proactively.
2
Ongoing Monitoring and Compliance
Assign a designated individual within the company to ensure third-party vendors adhere to security requirements and make necessary improvements.
3
Transparent Communication
In case of a cyber incident, immediate, honest, and effective communication with stakeholders can help contain reputational damage and rebuild trust.
4
Conclusion
While outsourcing IT and OT services is common, businesses must realize the ultimate responsibility for their security lies with them. Companies need to assess, monitor, and enforce security measures within their third-party relationships proactively. Independent evaluations, regulatory compliance, and continuous improvement are crucial for safeguarding operational integrity and maintaining trust in the digital industrial era.
By proactively addressing cybersecurity, businesses can minimize financial losses, prevent reputational damage, and ensure long-term resilience in an increasingly complex threat landscape.
We are hosting a webinar about OT cybersecurity risks on 7.5.2025 – register below!
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