Third-Party & Supply Chain

Contributor Insight - Who knit this sweater? What was the environmental impact of growing these almonds? How was this cell phone made and transported to my home? These aren’t merely idle thoughts for many modern consumers today. They are important criteria for making purchasing decisions, and businesses are increasingly aware of the need for ethical sourcing.

In its annual Cost of a Data Breach Report, IBM Security has shed light on the growing concerns surrounding third-party risk and security in the modern digital landscape. The report reveals crucial insights into data breaches originating from supply chain compromises, indicating a rising threat that businesses must address to safeguard their sensitive information.

The Office of the Comptroller of the Currency (OCC) has imposed a $15 million civil money penalty on American Express National Bank (American Express) for violations of regulations pertaining to third-party oversight and customer retention efforts targeting small businesses. The OCC's findings revealed significant deficiencies in American Express's governance and oversight of a third-party affiliate, along with non-compliance with Customer Identification Program (CIP) regulations.

Fashion Revolution, a global movement advocating for increased transparency and sustainability in the fashion industry, released its eighth annual Fashion Transparency Index earlier this month. The report reveals that many fashion brands are still falling short in increasing transparency in their supply chains and addressing global impacts from the previous year.

Procurement costs have been on the rise in 2023, posing significant challenges for organizations as they grapple with inflation, supply disruptions, and other unprecedented factors. The Hackett Group's latest research report, "Resilience: The Digital World Class Procurement Advantage," sheds light on the increasing financial burden faced by procurement functions. According to the report, procurement costs now comprise 74% of total spend for Digital World Class organizations, up from 69% the previous year. Peer organizations have also witnessed a similar trend, with procurement costs accounting for 93% of total spend in 2023, up from 89% in 2022.

CEOs of UK and US-based companies are expected to dedicate even more time to supply chain matters in the coming year, according to the recently released Supply Chain Barometer by Proxima. Based on a survey of 2,000 business leaders, the study sheds light on the key issues and concerns faced by CEOs when it comes to global supply chain challenges in the year ahead. Notably, human rights issues within supply chains have emerged as a top concern for business leaders.

ProcessUnity and CyberGRX have announced their merger, creating a software and data platform to enhance customers' ability to identify, assess, analyze, and mitigate risks within their ecosystem. The combined company aims to centralize and standardize vendor risk management, specifically addressing the critical challenges of third-party and cybersecurity risks faced by global enterprises.