Financial Firms Grapple With Cyber Risk in the Supply Chain
This article talks about the growing concern for cyber risk in the business world. With technology advancing so quickly, companies are now faced with the challenge of keeping their data and information safe from hackers. Since the business world is so interconnected, with intricate supply chains and partnerships, companies are becoming more and more vulnerable to a hack. For a supply chain to function seamlessly, all participants must use compatible computer systems. Some firms have lagging cyber safety protocols in place because an update would cause a break in the supply chain. This article cites an example of a Fortune 500 bank whose system is not patch for a bug called “Heartbleed”, and remains this way because patching their systems would break continuity with many European banks that have not updated their systems. Companies are forced to choose between a system safe from hackers and a continuous supply chain, which proves to be a tough decision. Regulators have created cyber safety and protection standards for firms in the US to avoid major hacks and breaches to precious information.
1. Do you think firms are going to be forced to break continuity in their supply chain to maintain safety standards in regards to cyber risk?
2. Do you think the regulators will be successful in enforcing their rules and standards, and how do you think they will do this?
3. If you were faced with the decision of a continuous supply chain or comprehensive cyber safety, which would you choose? Why?