In the rapidly evolving landscape of global commerce, the significance of cybersecurity within supply chains cannot be overstated. As Asian organisations increasingly rely on interconnected networks of suppliers, logistics providers, and service partners, the vulnerabilities associated with these relationships have come to the forefront.
Understanding supply chain risk vs. supplier risk
Forrester senior analyst Alla Valente begins by emphasising the critical distinction between supply chain and supplier risks. begins by emphasising the critical distinction between supply chain and supplier risks.
Alla Valente
“Supplier risk, often referred to as vendor risk, pertains to the specific vulnerabilities associated with individual entities within the supply chain. This includes the potential for data breaches or operational disruptions that can arise from engaging with these third parties.” Alla Valente
Conversely, supply chain risk encompasses the broader spectrum of threats that can affect the entire network of interconnected entities—from vendors to shippers and beyond.
This differentiation is crucial for CISOs in Asia. While they may have some control over supplier risks through due diligence and contract negotiations, supply chain risks are often influenced by external factors beyond their immediate control.
Valente points out that “the interdependence of entities means that a disruption affecting one organisation can rapidly cascade through the entire supply chain, amplifying the impact across sectors and geographies.”
The landscape of cyber threats in Asia
Valente identifies three significant cybersecurity threats facing Asia’s supply chains in 2025. First, the prevalence of cyberattacks and data breaches continues to escalate, driven by adversaries’ increasingly sophisticated techniques.
Second, intentional or accidental disruptions often arise from vulnerabilities within third-party providers. These incidents can cripple organisations, regardless of their geographical location.
The third threat is a broader categorisation of operational disruptions that can stem from various sources, including geopolitical tensions, economic instability, and natural disasters. According to the PwC Global Digital Trust Insights 2025, 61% of Asian organisations have experienced significant cyber incidents in the past year, highlighting the urgent need for CISOs to develop robust risk management strategies beyond traditional cybersecurity measures.
The imperative of third-party risk management
In Valente’s analysis, the importance of effective third-party risk management emerges as a central theme. In Asia, 26% of enterprise risk management decision-makers view third-party risk as a primary concern—a figure that surpasses the global average of 17%.
Despite this recognition, Valente notes that many organisations still fail to allocate adequate resources or attention to this critical area.
CISOs must champion integrating third-party risk management into their broader cybersecurity frameworks. Deloitte Cyber Risk Report 2025 found that only 37% of organisations in the Asia-Pacific region have a dedicated team responsible for managing third-party risks, underscoring the gap between recognition and action.
This includes leveraging Third-Party Risk Management (TPRM) platforms that can assess, measure, and monitor the risks posed by external partners.
Leveraging technology for resilience
As Valente discusses the technological landscape, she highlights the emergence of tools that enhance supply chain resilience against cyber threats. Cyber Risk Ratings, for instance, offer valuable insights into the security posture of third parties, allowing organisations to make informed decisions based on real-time data.
These ratings augment traditional assessment questionnaires and provide ongoing monitoring for changes in external security conditions.
Moreover, Valente points to the growing reliance on generative AI to model risk scenarios. “By analysing contextual information—such as business models, geographic distributions of assets, and regulatory changes—organisations can generate tailored risk assessments.”
This proactive approach enables CISOs to identify latent risks and develop strategies to mitigate them effectively.
Contingency planning and preventative measures
While the unpredictability of cyber incidents poses a significant challenge, Valente asserts that the best contingency plans stem from preventative measures. Organisations must redefine what constitutes a “critical” third party.
Historically, the determination of criticality often relied on financial spending, but Valente advocates for a more nuanced approach that considers operational resilience and its potential impact on business continuity.
The KPMG Supply Chain Resilience Report 2025 report emphasises the importance of this shift, noting that organisations that re-evaluate their criteria for criticality are better positioned to manage unexpected disruptions.
CISOs should prioritise risk management efforts for third parties that may not traditionally be considered critical. By expanding the scope of risk assessments, organisations can better prepare for disruptions that may originate from less obvious sources.
Balancing cost and cybersecurity investments
One of the most pressing dilemmas for CISOs is balancing cost considerations with the need for robust cybersecurity investments. Valente likens effective risk management to a “save now; pay later” scheme. “While the immediate costs of investing in cybersecurity may seem substantial, the long-term expenses associated with breaches are often far greater.”
Valente emphasises that organisations must recognise that a breach involving a third-party partner is not a matter of “if” but “when.” The aftermath of such incidents can be costly, involving remediation efforts, regulatory compliance, and reputational damage.
Therefore, investing in preventative measures is not merely a budgetary concern but a strategic imperative for safeguarding organisational integrity.
Addressing 2025’s uncertainties
Vallente describes the business volatility of 2025 as akin to a wooden roller-coaster ride—bumpier than expected and filled with unexpected twists! With global outages, cyber threats, trade wars, and restless customers, business leaders are strapped in for a ride they can’t control, their hearts racing with every “clickety-clack.”
Yet, amidst this chaos, there’s a glimmer of hope: it doesn’t have to be this way. “While you can’t control the volatility, your approach to enterprise risk management will determine whether this ride is an exhilarating experience or a nausea-inducing one,” she offers.
CISOs in Asia must adopt a proactive and comprehensive approach to cybersecurity. By clearly understanding supply chain and supplier risks, leveraging advanced technologies, and prioritising third-party risk management, organisations can enhance their resilience against cyber threats.
Valente believes the path forward requires a commitment to ongoing education, investment in technology, and a strategic mindset that prioritises cybersecurity as a fundamental component of business operations.
By embracing these principles, CISOs can help their organisations survive and thrive in an ever-evolving digital landscape.
