BlueVoyant’s 2024 Survey: Advancements in Supply Chain Cyber Risk Management

BlueVoyant, a leading cyber defense company, has released its fifth annual global survey focused on supply chain cyber risk management. The 2024 study highlights a shift in organizational focus from awareness and adoption of third-party risk management (TPRM) to enforcement and compliance, showcasing ongoing investments in technology and talent to bolster supply chain security.

Key Findings of the 2024 Survey

• Reduction in Supply Chain Breaches:
  • This year’s survey revealed that 81% of organizations experienced negative impacts from supply chain breaches in the past twelve months, a significant decrease from 94% in 2023. While improvements are evident, a majority of organizations continue to report breaches.
• Shift in Focus:
  • Joel Molinoff, Global Head of Supply Chain Defense at BlueVoyant, noted,
  “More organizations than any previous year indicated that their primary focus is no longer on awareness of the third-party risk management problem… but rather with the operational, day-to-day challenges of managing an effective program.” This shift marks a notable advancement from previous years where organizations faced challenges in tracking vendors and lacked leadership oversight.

Investment and Collaboration Trends

• Increased Budgets:
  • An impressive 86% of respondents reported increases in TPRM budgets, signaling a commitment to enhancing supply chain security.
• Enhanced Collaboration:
  • More than 36% of organizations have adopted a proactive approach, working closely with suppliers to address and remediate identified cyber risks, up from 19% in the previous year.

Sector-Specific Challenges

• Healthcare Sector Vulnerabilities:
  • Among the sectors surveyed, healthcare and pharmaceutical companies exhibited the highest negative impact rate from breaches at 87%. Alarmingly, 36% of healthcare organizations reported having no means to detect threats within their third-party ecosystem.
• Need for Monitoring and Assessment:
  • Despite progress, only 32% of third-party vendors are regularly monitored (1,459 out of 4,510 suppliers on average). Additionally, 50% of organizations do not conduct periodic assessments of all their vendors due to resource, technology, and expertise constraints.

Future Directions in Supply Chain Defense

• Integration of Cyber Risk Management:
  • Brendan Conlon, Global Director of Supply Chain Defense at BlueVoyant, remarked,
  “Organizations are making progress in more frequent monitoring of third parties, though challenges in reporting metrics to senior management persist.” He emphasized the importance of integrating third-party cyber risk into daily security operations and broader risk management strategies as the industry matures.

Methodology of the Study

The 2024 study was conducted by the independent market research organization Opinion Matters, which surveyed 2,100 C-suite leaders responsible for supply chain and cyber risk management across various industries. The research encompassed 11 countries in North America, Europe, and Asia Pacific, ensuring a comprehensive global perspective.

BlueVoyant’s 2024 global survey underscores the progress organizations are making in supply chain cyber risk management, particularly in enforcement and compliance. While challenges remain, particularly in sectors like healthcare, the findings highlight the importance of increased budgets, enhanced collaboration, and ongoing monitoring to ensure robust cybersecurity in an evolving threat landscape.

PRNewswire