Spring 2014 issue of Horizons

MANUFACTURING & DISTRIBUTION

governments seeking to protect their economies and domestic industries from foreign competition ∙ Personal information about consumers or businesses in the form of credit card numbers, bank accounts or other sensitive information that can be ultimately converted to cash (directly or through selling the information on the global black market) ∙ Professional advisors called upon to assist companies engaged in sensitive negotiations to either acquire or sell a business, patent a new technology or introduce new products and services The very first step in preventing cyber theft at your business is the acknowledgment of potential issues – particularly in the procurement area. Because more than 40% of all data security breaches arise from attacks on suppliers, responsibility for protecting this information belongs at critical points within the supply chain. In this way, protecting critical and sensitive information becomes a key issue at the outset of establishing any new vendor and customer relationship, entering acquisition negotiations or initiating new contracts. Mitigate Your Risks Below are some tips from Tim Garcia, CEO of a supply chain management, e-procurement and financial productivity company. ∙ Analyze your supply chain for vulnerabilities. Most likely you are aware of this important step as you work with new partners, but perhaps you are not considering the cyber risk as part of your overall assessment. ∙ Ensure the IT department and supply chain team collaborate. This is especially important when assessing risk and

business, yet significantly increases the risk of that information becoming compromised.

To be successful in today’s economy, manufacturers of all sizes are forced to expand nationally and internationally, both in sourcing materials for production, as well as opening new markets for their products. As a result, their supply chains can be complex and far reaching. Many companies are not aware of the seriousness of the issue, especially when it comes to their own extended supply chain. Most companies do a good job of identifying and managing the internal risk of protecting information, but are unaware of the risk that exists at their suppliers. Sensitive information shared with your suppliers that is at risk might include the following: ∙ Intellectual property or unique processes may be pirated by companies looking to steal technology or by foreign

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