The Resurgence of Supply Chain Attacks and Their Impact on KYTP Processes.

Cybersecurity threats continue to evolve, and among the most concerning trends is the resurgence of supply chain attacks. These attacks target vulnerabilities in third-party vendors, software providers, and service partners, making them particularly insidious due to their far-reaching consequences. One of the most significant cybersecurity incidents this year was the ransomware attack on CDK, a software firm widely relied upon by car dealerships. The breach resulted in operational disruptions lasting over a week, affecting thousands of dealerships across the United States. This incident serves as a stark reminder of the cascading risks that supply chain attacks pose, impacting not just the initial target but entire business ecosystems.

During a recent business trip, I met up with Mustafa Lotia - CIP, CISA, CCISO of Inspira Enterprise and we had extensive discussions around cybersecurity and risk management frequently centred on the growing threat of supply chain vulnerabilities. Many organisations are increasingly aware that their security is only as strong as the weakest link in their supply chain. This raises an urgent question for business leaders: how can companies fortify their Know Your Third Party (KYTP) processes to mitigate such risks?

KYTP is an essential framework for assessing, managing, and mitigating risks posed by third-party vendors. Given the rise in supply chain attacks, businesses must evolve their KYTP strategies beyond traditional compliance checks. The CDK incident illustrated how a cyberattack on a single service provider can disrupt entire industries, underscoring the need for organisations to conduct deeper due diligence when onboarding vendors and continuously monitor them throughout the business relationship.

A robust KYTP process should encompass several key elements:

1. Comprehensive Risk Assessments – Organisations must assess the security posture of all vendors before engagement. This includes evaluating their cybersecurity frameworks, compliance with industry regulations, and history of past breaches.
2. Continuous Monitoring – Cyber threats are dynamic, meaning that a one-time risk assessment is insufficient. Companies must implement continuous monitoring systems to track their third-party vendors’ security practices, detect potential vulnerabilities, and respond proactively.
3. Incident Response Planning – Given the inevitability of cyber incidents, businesses should work closely with vendors to establish clear incident response protocols. This ensures that in the event of an attack, both parties can act swiftly to contain damage and restore operations.
4. Contractual Security Requirements – Embedding cybersecurity obligations into contracts with third-party vendors is a proactive step. These contracts should mandate compliance with security standards, regular audits, and transparency in reporting security incidents.
5. Collaboration and Information Sharing – Organisations should actively participate in industry-wide intelligence-sharing forums to stay informed about emerging threats and best practices for mitigating supply chain risks.

The resurgence of supply chain attacks signals a shift in the cybersecurity landscape, where businesses must adopt a proactive rather than reactive approach. As we have seen with CDK, these attacks do not just affect the direct target but create widespread disruption across industries.

Strengthening KYTP processes is no longer optional—it is a necessity. Organisations that embed rigorous third-party risk management into their cybersecurity strategies will be better positioned to navigate this evolving threat landscape, ensuring resilience against future supply chain attacks.

Mark Rothwell-Brooks, Chief Executive

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The Impact Team is a digital transformation consultancy that partners with organisations to enhance their digital products and services. Their expertise encompasses advising on team structures, managing design operations, and implementing governance frameworks, all with a focus on customer-centric solutions and effective execution.

Recognising the importance of continuous improvement, The Impact Team integrates change within organisations to swiftly respond to evolving market demands. They foster a culture of innovation and adaptability, embedding these principles into the organisational fabric.

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