We’re excited to debut our monthly “Risk Savvy Report”, powered by Craft’s robust platform to keep you informed with the latest updates and trends shaping the global supply chain.
This report provides just a glimpse of Craft’s extensive capabilities. Our platform lets you configure news and alerts from a comprehensive data fabric, creating a tailored, collaborative environment that delivers vital supply chain information while filtering out irrelevant data.
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Without further ado, let’s explore recent developments impacting the global supply chain.
Cybersecurity: An Escalating Risk
As businesses embrace digital transformation, vulnerabilities in their supply chain expose them to very real cybersecurity threats. Post-2020, cyber attacks surged by 125% in 2021 and another 40% in 2022. In 2024, global cybercrime is anticipated to cost the economy a staggering 9.5 trillion USD annually.
The recent Nexperia data breach and Skanlog ransomware attack are signs that cybersecurity risk is a substantial and ongoing threat. These attacks lead to downed systems, 15% revenue loss, and intellectual property compromise, impacting notable companies such as SpaceX, Apple, IBM, and Huawei. Both companies are now intensely focused on investigation, placing a heavy priority on establishing proactive measures to avoid further attacks and monitor suppliers and third parties on an ongoing basis.
Fortunately, reports from companies like CGCYBER and Binarly have identified potential vulnerabilities in network-connected OT systems in marine environments and unpatched Lighttpd web servers in baseboard management controllers, exposing opportunities for companies to improve their resilience against cyberattacks. This knowledge empowers organizations to enhance their resilience against cyber threats by analyzing their supply chain with more extensive due diligence processes to mitigate risk.
Read our cybersecurity risk solution brief to learn how to protect against cyber threats.
Environmental Oversight Sparks Public Concern
Several prominent U.S. banks have exited the Equator Principles, an ESG project finance group for assessing environmental and social risks, signaling a prioritization of profit over sustainability. Consequently, organizations emphasizing robust ESG compliance in their supply chain may opt against engaging with these banks.
Additionally, Duke Energy and Intel have fallen short on their commitments to reduce carbon emissions by underreporting, building nonrenewable energy sources, and increasing production of dangerous gasses. This sparked public outlash and media scrutiny, highlighting large corporations’ failure to adhere to regulations with accountability.
As major corporations seemingly anticipate minimal consequences for ESG violations, enhanced capabilities for supplier analysis will diminish room for excuses.
Learn more about ESG risk in supply chains.
U.S. & China Chip Wars Causes Global Disruption
The U.S. Department of Commerce recently blacklisted a key partner for Intel and NVIDIA, Sitonholy, along with 9 other companies, for allegedly supplying technology to the Chinese, Iranian, and Russian militaries. In response to tightened US restrictions, China instructed its largest telecom carriers to phase out foreign chips crucial to their networks by 2027.
Companies like Intel, AMD, and NVIDIA find themselves navigating complex governmental challenges, given their expansive supplier networks and society’s reliance on processors. They must remain vigilant and adaptable to evolving contingencies.
Learn about configurable alerts for supply chain risk management.
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We hope these insights have enhanced your understanding of the global supply chain, making you evermore risk savvy.
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