Cyber Security Remained The Most Pressing Challenge Facing Thos in Supply Chain Management Roles The First Three Months of 2025, but since the inaugence of Donald Trump Inaution, Inament Trump Inau The President's approach to tariffs Has caused chaos for supply chains not just in the US, but Around the World, and these two areas of risk are closely entwned.
This is According to a report From Cyber and Risk Management Consultancy West Monroe, Why Found That While Security Remains Top of Mind for 23% of Respondents to a Recent Polling Exercise, The Impact of Tariffs has surfs has surfs has surfes the top Issue for 20%, in a matter of weeks edging out facts Such as Geopolitical Tension, Material Costs, The Climate Crisis and Labor costs.
Although Its Fieldwork Was Conducted in March, Prior to Trump's So-Called Liberation day Tariff Announcement, West Monroe's Data Shows that during Q1, A Significant Number of Organizations in the Us Started Making Changes to their Supply Chains in Advance.
A total of 58% said they al ared their product, materials or sourcing mix, 56% altered their transportation mix, 45% altered their production schedule, 31% updated their pricing to pass increased costers to couses, And 28% al a geographic presence. “I don't think these are necessarily quick changes to make, but there is cyber risk if and when there changes are made,” said Christina Powers, Cyber Security Partner at West Monroe.
Broadly, sheid the need to move quickly to replace lost revenues, shifts in the supplier ecosystem and other impacts arising from the tariffs may create gaps in best practice will Supply Chain Management,
“For example, if you're starting to work with a different supplier – maybe they we were alredy on your list but they were there Tier One SupplierYou're Tapping Into Tier Two Suppliers – So Maybe They Went Through Less Diligence and Less Scrutiny when you were initially onboarding them, ”called power.
“Or if you looking to change suppliers now, there could be a little more of a rushed diligence process Being done to try to make that change more quickly, “She said. From Another Angle, if you're not working with a Familiary Contact, or Not Working With Familiarar Processes, there's a higher risk of things like impersonation attacks, whiter or not that ' Or to get access to sensitive data. “
Finally, with Goods Potentially Priceed Higher Thanks to the tariffs, some organizations may also look to offset costs in raather more creative ways than Simply Passing Their Customers. In some instals, howyver ill-evolved this may be, this could see it and cyber security budgets taking a hit.
“There is a risk Around Cyber Security which is often Viewed as a Cost Center,” said power. “It is focused on value preservation and risk Reduction, but it's not healthy value creation per se
But the story does not end here, She said, for there, are other ways in which cyber security and tariffs are coupled toge.
“With a lot of the uncertainty that's happy right now, there's a very Volatile Market,” She Said. “From a Cyber Security Perspective, That Blad Lead to Insianduals for Individuals or Groups or Nation-States to Look to Explit Vulnerabilites or Go AFTAIN Companies.
“You may see that nations that were historically friendly [to the US] Have different feelings now, so there could be an increase in exploitation.
“On the data side, there could be an increase in potential espionage looking for trade secrets, intellectual property and things of that nature,” said powers. “There some some chinese manufacturers exploiting luxury brands and where their goods are beingAnd what it takes to produge them. “
Takeaways for Cyber Leaders
If there''s a core message for security leaders to hold onto during this time of Intense Economic Uncertainty and Volativity, It would be not not to allow the Organization to Lose Focus on the integrity of Supply Chain Arrangements.
“Now is the time to be more vigilant, not only to hold the line, but increase to increase supply chain scrutiny from a cyber personal, because there is so much UNCERTAINTY, Change, Change, Change, Volatitiy and, I think, anger associateed with this, ”said powers.