Sherlocked Security – Supply Chain Risk Assessment
Identify, Mitigate, and Manage Risks Across Your Supply Chain to Ensure Security and Resilience
1. Statement of Work (SOW)
Service Name: Supply Chain Risk Assessment
Client Type: Enterprises, Manufacturing, Financial Institutions, Retailers, Healthcare Providers
Service Model: Project-Based Assessment, Retainer Advisory, Continuous Monitoring
Compliance Alignment: NIST 800-53, ISO/IEC 27001, GDPR, PCI-DSS, SOC 2, HIPAA
Supply Chain Risk Assessment Covers:
- Identification of key suppliers, vendors, and service providers in the supply chain
- Risk analysis of supply chain vulnerabilities, including cyber threats, operational risks, and regulatory compliance gaps
- Assessment of third-party controls and practices related to data security, business continuity, and risk management
- Evaluation of supply chain dependencies, critical infrastructure, and third-party breach exposure
- Review of contractual obligations with suppliers, including security and compliance clauses
- Ongoing monitoring of supply chain risk, including performance audits and compliance checks
2. Our Approach
[Supply Chain Mapping] → [Risk Identification] → [Third-Party Risk Assessment] → [Security & Compliance Review] → [Vendor Classification] → [Continuous Monitoring] → [Reporting & Remediation]
3. Methodology
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Supply Chain Mapping:
- Identify and document all key suppliers, vendors, and service providers across your organization’s supply chain.
- Map the flow of data, goods, and services from suppliers to ensure comprehensive risk evaluation.
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Risk Identification:
- Identify risks specific to your supply chain, including cyber threats, operational disruptions, geopolitical risks, and financial instability.
- Assess risks of fraud, intellectual property theft, and data breaches related to third-party vendors and partners.
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Third-Party Risk Assessment:
- Evaluate each supplier’s security posture, compliance status, and risk management strategies.
- Assess suppliers’ cybersecurity defenses, such as encryption, access controls, and incident response capabilities.
- Evaluate business continuity plans and disaster recovery strategies for suppliers to assess their ability to mitigate disruptions.
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Security & Compliance Review:
- Review the security practices of critical suppliers to ensure compliance with relevant standards (e.g., ISO/IEC 27001, SOC 2, GDPR).
- Ensure that third-party vendors meet data protection requirements, particularly in sensitive sectors such as finance and healthcare.
- Conduct penetration testing and vulnerability assessments for critical supply chain systems, including third-party platforms.
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Vendor Classification:
- Categorize suppliers into risk tiers (low, medium, high) based on their access to sensitive data, critical infrastructure, and the potential impact of a breach or disruption.
- Prioritize higher-risk suppliers for more frequent audits and assessments.
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Continuous Monitoring:
- Implement ongoing monitoring tools to track the security and performance of critical suppliers.
- Use automated tools to track the status of supply chain security, regulatory compliance, and performance against key performance indicators (KPIs).
- Monitor for any significant changes in supplier risk, including new vulnerabilities, financial instability, or regulatory non-compliance.
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Reporting & Remediation:
- Generate comprehensive risk reports detailing identified vulnerabilities, security gaps, and compliance issues across the supply chain.
- Provide actionable recommendations for improving supply chain security, including risk mitigation strategies, contingency plans, and vendor remediation steps.
- Develop an action plan to address high-risk areas and improve overall resilience against supply chain disruptions.
4. Deliverables to the Client
- Supply Chain Risk Assessment Report: A detailed report identifying risks across the supply chain, including cyber threats, operational risks, and compliance gaps.
- Vendor Risk Classification Matrix: Categorization of suppliers into low, medium, and high-risk tiers, with detailed risk profiles.
- Security & Compliance Gap Analysis: Documentation of identified gaps in security practices, data protection, and regulatory compliance.
- Business Continuity & Disaster Recovery Evaluation: Assessment of third-party business continuity plans and disaster recovery capabilities.
- Ongoing Monitoring Plan: A roadmap for continuously monitoring supplier performance, security posture, and compliance status.
- Remediation Action Plan: A prioritized list of actions for addressing identified risks, including vendor-specific remediation strategies.
5. What We Need from You (Client Requirements)
- Supply Chain Vendor List: A comprehensive list of all suppliers, vendors, and service providers across your organization’s supply chain.
- Existing Contracts & SLAs: Copies of contracts and service-level agreements with suppliers for review.
- Security Documentation: Security practices, certifications, and audit reports from suppliers (e.g., ISO/IEC 27001, SOC 2).
- Data Flow Mapping: Documentation showing how data flows between your organization and suppliers, particularly for sensitive data.
- Business Continuity Plans: Existing continuity and disaster recovery plans from critical suppliers.
- Incident History: Historical data on any supply chain disruptions or security incidents involving suppliers.
- Stakeholder Interviews: Availability of internal stakeholders (e.g., procurement, IT, risk management) to discuss supply chain risks and vendor security.
6. Tools & Technology Stack
- Supply Chain Risk Management Platforms:
- Resilience360, Everstream, Aravo, Riskmethods
- Vulnerability & Security Assessment:
- Tenable, Qualys, Nessus, Rapid7
- Compliance & Risk Tools:
- OneTrust, MetricStream, RSA Archer, Trellis
- Third-Party Monitoring Tools:
- SecurityScorecard, BitSight, UpGuard, RiskRecon
- Business Continuity Planning:
- Fusion Framework, Continuity Logic, Everbridge
7. Engagement Lifecycle
- Kickoff & Scoping: Initial meeting to define the scope of the engagement and understand the organization’s supply chain and vendor relationships.
- Supply Chain Mapping: Identify all critical suppliers and document the flow of data, goods, and services.
- Risk Identification & Assessment: Identify and evaluate supply chain risks across cyber threats, operational risks, and financial vulnerabilities.
- Security & Compliance Review: Review security controls, regulatory compliance, and vendor risk management practices.
- Business Continuity Review: Assess suppliers’ business continuity plans and disaster recovery capabilities.
- Continuous Monitoring Setup: Implement automated monitoring of key suppliers and establish metrics for ongoing assessment.
- Reporting & Remediation: Deliver detailed reports outlining identified risks and provide a remediation plan for addressing high-priority risks.
8. Why Sherlocked Security?
| Feature | Sherlocked Advantage |
|---|---|
| Comprehensive Supply Chain Risk Review | A holistic approach to identifying and mitigating risks across your supply chain. |
| Automated Continuous Monitoring | Ongoing monitoring of supply chain security, compliance, and vendor performance. |
| Vendor Risk Prioritization | Prioritize high-risk vendors and allocate resources for in-depth assessments. |
| Compliance & Security Expertise | Deep expertise in global security standards (e.g., ISO 27001, SOC 2, GDPR) and regulatory frameworks. |
| Actionable Remediation Plans | Prioritized, actionable steps to address identified supply chain risks. |
9. Real-World Case Studies
Financial Institution – Third-Party Risk Exposure
Client: A global financial services firm with numerous third-party vendors.
Findings: Identified gaps in vendor compliance with financial regulations and inadequate cybersecurity practices among third-party payment processors.
Outcome: Developed a comprehensive risk management strategy, categorized suppliers based on risk, and implemented a continuous monitoring framework, reducing overall risk exposure by 50%.
Manufacturing Firm – Supply Chain Disruption
Client: A manufacturing company heavily reliant on overseas suppliers for raw materials.
Findings: Geopolitical risks and operational vulnerabilities in the supply chain, including lack of business continuity planning for key suppliers.
Outcome: Conducted risk assessments, recommended alternative sourcing strategies, and worked with suppliers to implement business continuity plans, improving supply chain resilience.
10. SOP – Standard Operating Procedure
- Initial Assessment: Review current supply chain and vendor relationships.
- Mapping & Classification: Identify key suppliers, data flows, and critical dependencies.
- Risk Assessment: Evaluate risks across cyber, operational, financial, and geopolitical factors.
- Security & Compliance Review: Assess suppliers’ security practices and regulatory compliance.
- Business Continuity Review: Evaluate third-party business continuity and disaster recovery plans.
- Continuous Monitoring Setup: Implement ongoing monitoring tools for tracking vendor performance.
- Reporting & Remediation: Provide detailed reports with recommendations for improving supply chain security and resilience.
11. Supply Chain Risk Assessment Readiness Checklist
1. Pre-Assessment Preparation
- [ ] List of all critical suppliers and service providers
- [ ] Existing contracts and service-level agreements (SLAs) with third parties
- [ ] Security certifications and audit reports from suppliers
- [ ] Business continuity and disaster recovery plans from critical suppliers
2. During Engagement
- [ ] Perform detailed risk assessments across all suppliers
- [ ] Review security practices, data protection measures, and compliance status of suppliers
- [ ] Evaluate business continuity and disaster recovery strategies for critical suppliers
3. Post-Engagement Actions
- [ ] Develop and implement continuous monitoring of key vendors and suppliers
- [ ] Track and document vendor remediation efforts for identified risks
- [ ] Update supply chain risk management policies and procedures based on findings