World’s largest companies at near-universal risk of supply chain breach

Out of the world’s 2,000 largest companies, 1,980 have a direct connection to a technology supplier that has experienced a recent cyber security incident or data breach, highlighting escalating risk levels to the global economy presented by multi-party supply chain attacks.

In research released to mark the opening day of the annual Black Hat security conference, SecurityScorecard and The Cyentia Institute said they had identified that 99% of the organisations listed on Forbes’ Global 2000 list – which includes many UK multinationals such as AstraZeneca, BP, Diageo, HSBC and Vodafone to name but a few – were exposed to such risk.

Losses arising from breaches affecting the Global 2000 are already well into the billions of US dollars, possibly as high as $80bn in the past 15 months, and the joint study found that 20% of the Global 2000 were using 1,000 or more IT products, meaning they face the same number of potential entry points.

Added to this, the significant interdependence that exists between this network of organisations concentrates this risk, said Wade Baker, Cyentia partner and co-founder.

“While the Global 2000 boasts $51.7tn in revenue, their interconnectedness exposes them to severe cyber risks – with 99% directly connected to breached vendors and incidents that can tally into the tens of billions,” he said.

Ryan Sherstobitoff, senior vice-president of threat research and intelligence at SecurityScorecard, added: “The world is only beginning to grasp the potential for chaos caused by concentration risk.

“Understanding and managing your supply chain is critical to protect business continuity. It’s not just about preventing disruptions; it’s about safeguarding the very foundation of our interconnected economy.”