On May 7, 2020, a cyber gang, known as the Dark Side, shut down the Colonial pipeline distribution network. This is no ordinary cyberattack. The Dark Side launched a ransomware attack to cripple the Continental pipeline.
It’s one America’s largest pipelines impacting 50 million consumers. The pipeline runs from Texas to New Jersey. It pumps 100 million gallons of oil every day. And it services 50 million consumers.
The pipeline opened Wednesday evening, after a shutdown of six (6) days .
Is this a one off? Not according to the experts.
Here are the top five cyber threats you can expect in 2021: (1) Social engineering, (2) Ransomware, (3) DDOS attacks, (4) Third party software, and (5) Cloud computing vulnerabilities.
Now let’s peruse a few more facts and projections complied by Stealth Labs.
- A business will fall victim to a ransomware attack every 11 seconds in 2021
- The global average cost of a data breach is USD 3.92 million
- Over 50% of all global data breaches to occur in the United States by 2023
- Estimated annual losses through cyberattacks to reach USD 6 Trillion by 2021
- Cybercrime breaches to increase by 76% by 2024
- The average cost of a data breach to a US company is USD 7.91 million
- The average number of days to identify an incident in 2019 was 206 days
- 2 billion records were exposed due to data breaches in the first half of 2019
- Cyberattacks on IoT devices increased by 300% in 2019 (StealthLabs
Given these sobering facts and projections, no one should be surprised. So it only makes sense to protect your IT infrastructure. That means preparing for early detection, mitigation, avoidance, prevention, acceptance, and risk sharing. (Schlegel & Trent, Supply Chain Risk Management, 2015)
It will likely be a while before we know how the Dark Side breached Colonial’s IT infrastructure. At present, Algride Pipkaite of the World Economic Forum, stated, the breach occurred because cyber was not included in the development phase. That’s likely a true assumption, but we won’t know until investigators reveal all the facts.
Key Takeaways to Avoid a Catastrophic Failure
This cyberattack represented not just a disruption, it was a catastrophic failure. The operating environment in which we all find ourselves is risky, and it’s becoming riskier.
- Shockingly, your business is vulnerable to ransomware attacks, as they occur every eleven seconds.
- The U.S. is especially vulnerable with more than half of all data breaches occurring in the U.S.
- Experts project cyber breaches will likely increase a staggering 76% – only three years from now.
If you want to survive and thrive in today’s risk-laden environment – you must prepare your business now.
Today’s operating environment is more demanding than ever. That means supply chain risk management can no longer be an afterthought. It’s a must-have!
This event unquestionably shows risk is always on! So now is an opportune time to prepare your business to compete in today’s high risk environment.
There are several takeaways from this supply chain disruption, we at American Global Logistics want to leave with you.
They can help you prepare your business for the unthinkable… before disaster strikes.
- Does your business have a holistic supply chain risk management (SCRM) plan?
- Does your business have a continuity plan, should a risk event occur?
- How prepared is your business for catastrophic failure (and other levels of risk)?
- Does your plan identify your exposure and vulnerabilities, including cyber-attack?
- Have you assessed and prioritized the impacts of risk events facing your business?
- Is your SCRM plan anticipatory: Have you planned for early detection?
- Are mitigation, prevention, and avoidance steps pre-planned?
- Are redundancies and risk sharing considered?
These points scratch the surface. They’re intended to get you thinking about your readiness to face all manner of risks. They also help focus on continuing operations without suffering a major disruption.
Readiness to operate in any environment is critical. Your brand depends on it. Your profitability depends on it. And the survivability of your business depends on it.
Don’t let Colonial’s crisis go to waste.
Contact American Global Logistics today to learn about our approach to supply chain management.
We can help you keep your products flowing in any environment.
At American Global Logistics , we don’t wait for risk events to happen. We plan for them!