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Almost a third of corporate leaders have observed a significant rise in online breaches targeting their supply chains during the last six-month period, as high-profile security incidents on well-known companies have emphasized this growing risk to modern businesses.

Digital risks rise worry scales for supply chain executives

Online protection issues have advanced the list of concerns for supply chain executives at multiple organizations worldwide across diverse sectors including industrial, power and IT, according to current industry research carried out in the ninth month.

High-profile digital attacks cause substantial economic damage

Recent digital intrusions at various well-known companies have cost them substantial sums of currency, shifting cyber resilience from being mostly the focus of IT departments to becoming a primary concern for corporate boards and top executives.

The essence of worldwide business, how we look at worldwide distribution systems and the digital supply environment are ever more interconnected,

commented a prominent industry executive.

International factors compound supply chain concerns

Earlier this year, supply chain managers were especially concerned about geopolitical instability, including persistent disputes in several regions, along with international tariff measures that affected global commerce.

However, digital security risks are now rivalling global tensions and commercial conflicts as the main threat for organizations of global business groups.

Research reveals widespread consequences

The survey revealed that 29% of directors indicated that companies within their logistics networks had been compromised by cyber incidents in recent months.

Major car manufacturing effects

One prominent automotive manufacturer experienced production shutdowns and was found itself incapable to produce vehicles for a full month, following a cyber-attack that required the company to shut down IT networks across several global facilities.

The monetary effect of this month-long factory closure at the UK's biggest vehicle producer has been estimated at approximately 120 million pounds in foregone income, or one point seven billion pounds in missed sales, according to university research from a corporate finance professor.

Recent worldwide incidents

More recently, a well-known international drinks manufacturer became the most recent corporation to be required to stop production at its domestic factories following a cyber-attack.

The corporation, which maintains multiple industrial sites in its home country producing beer and various goods, announced that its order processing capabilities, along with distribution activities and call center operations, had been halted following a network disruption triggered by the cyber-attack.

Increasing connectivity produces risks

Organizations are progressively assisted by external entities. No longer exist the times of thinking an organization as an unit operating in independence.

Current major security incidents have served as a important lesson to companies to devote funding to comprehensive digital defences, to safeguard their internal functions and retain client faith, leading them to analyze how their supply chains could become possible focus points for cyber criminals.