This week, Starbucks faced significant operational disruption after Blue Yonder, a software company providing its payment and scheduling systems, fell victim to a ransomware attack. The breach left some Starbucks locations unable to process payments and caused widespread scheduling issues, showing just how vulnerabilities in a vendor’s cybersecurity can directly impact your business. For a global brand like Starbucks, this disruption not only affected daily operations but also impacted customer trust and employee satisfaction.
This incident is a powerful reminder for businesses of all sizes: even if you aren’t the direct target of a cyberattack, a vendor breach can still bring your operations to a halt. As a business owner, you need to be prepared to manage the fallout from a vendor-related cyberattack. Here are two major steps you can take to protect your business.
Incident Response Planning
When a vendor suffers a cybersecurity breach, your first step should be to activate your Incident Response Plan (IRP). This plan outlines the actions your business will take in the event of a disruption caused by a third party.
An effective IRP will help you answer critical questions quickly, such as:
Which business functions are most impacted by this vendor’s systems?
What steps can you take to mitigate disruption in the short term?
Who will communicate updates to your staff, clients, and stakeholders?
Be sure to assess your vendors regularly, identifying which ones are most critical to your operations and what risks they may pose. Keeping open lines of communication with your vendors ensures that they are prepared and can update you immediately if an issue arises.
Cybersecurity Insurance
Despite your best efforts, no business can fully eliminate risk, and that’s where cybersecurity insurance comes into play.
Cybersecurity insurance policies can help cover a range of issues related to vendor breaches, including:
Financial Losses: From business interruptions or ransom payments.
Third-Party Liabilities: If the breach results in exposure of customer or partner data.
Incident Recovery Costs: Including IT forensics, legal fees, and public relations support.
When reviewing your policy, make sure it covers vendor-related risks and be clear on what is and isn’t included when it comes to third-party compromises. Having this safety net can significantly reduce the financial impact of an unexpected event.
No one can predict when a cyberattack will strike, but you can control how well your business responds when it does. Take steps now to safeguard your operations, reputation, and bottom line.
Is your business ready for the unexpected? Contact us at Encompass IT to ensure your cybersecurity strategy is up to the task. Let’s build resilience together.
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