Third-Party & Supply Chain

Global electronics manufacturers Siemens, Ericsson, and Schneider Electric, in conjunction with industry group DigitalEurope, have raised concerns that the stringent European Union (EU) rules aimed at addressing cybersecurity risks associated with smart devices may disrupt supply chains on a scale reminiscent of the disruptions experienced during the pandemic. The companies have emphasized the potential challenges posed by the EU's proposed Cyber Resilience Act, which could have far-reaching implications for various industries.

The U.S. Securities and Exchange Commission (SEC) is receiving strong investor support for its proposal to include Scope 3 value chain emissions reporting in the final climate disclosure rule. These remarks came from SEC Chair Gary Gensler during a forum discussion at the U.S. Chamber of Commerce.

The Federal Reserve Board has taken a significant enforcement action against Metropolitan Commercial Bank, based in New York, New York, imposing a substantial fine of approximately $14.5 million. This action stems from violations of customer identification regulations and deficient third-party risk management practices in connection with the bank's issuance of prepaid card accounts.

The world’s largest logistics company, Prologis, said that the demand for industrial properties is remaining steady even as the market has made a shift away from consumer goods.

Flexport, a prominent American supply chain and logistics company based in San Francisco, has embarked on a substantial workforce reduction, aiming to cut 20% of its employee count, which currently stands at around 4,500. This bold move reflects the company's commitment to returning to profitability and ensuring long-term sustainability in a dynamic market.

A recent report by Sonatype reveals that open-source software (OSS) supply chain attacks have tripled, emphasizing the need for improved practices and vigilance. The 9th Annual State of the Software Supply Chain Report presents alarming trends in open-source software (OSS) and software supply chain security, highlighting the importance of better tools and practices for developers to save time and money.

In the ever-evolving landscape of modern business, third-party relationships have become increasingly integral to organizations across industries. To ensure resilience and minimize potential risks associated with these partnerships, companies are placing a growing focus on Third-Party Risk Management (TPRM). The results of the EY 2023 Global Third-Party Risk Management Survey underscore the critical role of TPRM in today's business environment.