Best SCRM practices should thereby be implemented. Considering that it is true that vendor dependencies enable a business running. But, it is also a business’s own risk and responsibility.
What Is SCRM?
This is all about good monitoring of the dependencies existing between you and your vendors. It is undeniably true that your organization is doing the best to protect your system. However, how about your third party vendors? And their third party vendors too? They are then considered as your fourth parties.
Do you know how integrating complex IT systems can do? A study shows that you can be connected to more than thirty thousand fourth parties. That is without you even knowing.
Thus, in a way or another, your IT systems are at risk.
Moreover, these strategies must help mitigate risks. Also, it helps in lessening vulnerabilities on hand. And most importantly, the main goal is to foster business continuity.
Furthermore, an effective SCRM includes optimum vendor monitoring. Being ‘optimum’ means being wide in scope. Meaning to say, this includes the vendors you do not have contact with. For instance, these could be the third party vendors connected with your third parties.
Overall, Supply Chain Risk Management is complex task insecurity. Besides, this is not a one-time task. But this requires continuous monitoring. Moreover, this includes both the known and unknown risks.
Thus, implementing good practices with this aids much in optimum security. Let’s discuss further into this.
Identification Of Known Risks
Identification is the first and foremost step of an effective SCRM. In this phase, we aim to identify the known risks first.
This includes your vendors and customers. Next, your IT systems and networks. Thirdly, where and how your IT systems are accessed. Lastly, what type of information do they have access to?
Your SCRM Framework
SCRM Framework should therefore speak how your business will face the risks. Consider which third parties are critical. Also, analyze how much they should affect security. Also, setting priorities into the high-risks.
One key is to first focus on what you can control. This gives a realistic approach to your framework.
An integral part is risk monitoring. However, this is also overwhelming. You cannot handle every risk the same way.
But, you can prioritize. Focus on the ones who pose high-risk values. Meanwhile, it is also crucial not to be complacent with low risks. Because attacks may come from unexpected sources too.
Unknown Risk Management
This is indeed overwhelming. It is hard to protect something over the unknown. Because you cannot verify the risks since you don’t know them.
But there’s still something you can do. Building strong and holistic security defenses must prepare you. Also, one thing that helps is getting rid of communication silos within the organization.