In a digital age where cyber threats loom large, we remember the vulnerabilities inherent in supply chains. Recent reports of a cyberattack involving healthcare providers have highlighted a stark reality: Cyber risk is a prevalent and imminent threat to supply chains’ resilience. Even organizations with robust security measures are not immune to the domino effect from an attack on a supplier. In this context, the role of predictive analytics and risk assessment becomes vital. 

Case study: Moody's scoring capabilities and identifying the risk of a cyberattack

Tab 1: Moody’s has forged a strategic partnership with Bitsight, integrating its cybersecurity scores and analytics into our suite of solutions, including Orbis. According to our analytics, a company with a “very high” score is typically 10.9 times likelier to face a cyberattack than a company in the ‘very low’ risk category.

Tab 2: Bitsight Cybersecurity Ratings are updated in Orbis monthly, and score companies on a scale of 250 to 900. In the chart below, we show an example of a Bitsight score of 670, which would make this company twice as likely to experience a data breach, and according to our analysis, 2.4 times as likely to face a ransomware attack.

As you can see below; we can also detect higher risk by monitoring trends. In this case, their Bitsight score has been declining in the past year.

Their risk vectors in the table below, show low grades for both the Transport Layer Security (TLS) and Secure Sockets Layer (SSL) risk vectors. These two risk vectors together make up 25% of the weight of a Bitsight Cybersecurity Rating. 

By using this type of data, government agencies can more readily see which vendors may be vulnerable, communicate with them proactively, and as a result, lower their cyber risk across their vendor network. 
 

Opportunity for proactive defense

To preempt potential cyber threats in your supply chain, we encourage organizations to foster a culture of preparedness and early mitigation, by leveraging data-driven insights that can give government agencies a strategic advantage and identify vulnerabilities before they are exploited.  A proactive stance enables strategic planning and targeted mitigation efforts, which are essential in an environment where resources are often limited.

The recent reported incident also highlights that cyber risk is only one aspect of the broader spectrum of threats that can undermine supply chain resilience. A comprehensive approach to risk management, encompassing the full spectrum of potential risks, is critical for supporting the integrity of supply chains.

In summary, the key to safeguarding against cyber threats lies in the ability to predict and act preemptively. It is about creating a robust framework for risk assessment that can adapt to the evolving nature of threats and offer actionable insights to guide decision-making processes.

We see three important takeaways:

• Prioritizing resources for early risk detection is crucial for effective supply chain management.
• Anyone can fall victim to cyber breaches, but the impact can be minimized with the right tools and early detection.
• Cyber risk is interconnected with other supply chain risks, and a broad risk assessment approach is necessary for building resilience.

As government agencies worldwide grapple with the challenges of cyber security, Moody's stands at the forefront, offering the insights and tools necessary to decode risk and unlock opportunity.