Supplier Relationship: Building Trust in a Digital Age

In today’s interconnected business world, characterized by extensive digital transformation, forging a robust supplier relationship has become increasingly vital. For this month, our cybersecurity focus narrows down to the management of cybersecurity risks within our supply chains and the optimal practices to cultivate a transparent and fortified supplier partnership through digital trust.

What is Digital Trust?

Digital trust refers to the implicit confidence individuals and organizations have in the custodians of their confidential data during online transactions. It is the assurance that data will be treated according to agreed terms and conditions, safeguarding it against abuse and ensuring its security in the digital realm. As the online world expands and becomes pervasive, digital trust has emerged as the foundation for data sharing and disclosure¹.

Common Principles of Digital Trust

Up to now, there is no standard document as such on the principles of digital trust that all businesses and organizations adhere to. Nevertheless, certain common principles have emerged from the evolving business management circumstances that are treated as the holy grail of digital trust. Such common principles are summarized below.

• Reliability. Customers and stakeholders perceive a business or organization as reliable in terms of data sharing. The business or organization has demonstrated a history of reliability as a custodian of date.
• Transparency. The business or organization transparently and explicitly shares its policies on data sharing or any updates with its customers and stakeholders.
• Security. The business or organization demonstrates a history of protecting the data and not only has the resources to protect the data but also shares its data protection strategies and resource information with the customers and stakeholders.
• Integrity. The business or organization has robust policies to maintain data integrity. It not only collects cohesive data but also robustly processes the data while taking enough care that it’s not compromised.

Awareness of Potential Vulnerabilities

As businesses increasingly rely on expansive digital networks, being acutely aware of potential vulnerabilities in the supply chain is not just a choice but a necessity. This ensures the prevention of unwanted security breaches caused by trust and no double-checking of the supplier, and it upholds the trust of our esteemed clients.

However, this awareness isn’t just about managing threats. It also involves discerning the information that suppliers have access to. Regular assessments should not only determine the type of data shared with suppliers but also cover the CIA criteria – ensuring the Confidentiality, Integrity, and Availability of the data.

Particular attention must be given to the location where the data, especially Personally Identifiable Information (PII), is stored. With regulations such as GDPR and Quebec Law 25, the location of data storage and processing can have significant legal implications.

Equally important is the recognition of all our suppliers, especially those often overlooked by many SMEs. Services such as Slack, MS 365, and Vimeo might seem commonplace, but they play a pivotal role in our supply chain. By identifying and managing them as integral components, we can further mitigate risks associated with our digital operations.

Before forming or continuing a relationship with any supplier, it’s essential to vet their commitment to cybersecurity and privacy. Leveraging tools like the IAPP checklist of Expedited Vendor Privacy and Security Assessment, coupled with the example “Cybersecurity Evaluation Checklist for Suppliers” provides a structured framework for this evaluation. Furthermore, recognizing certifications like SOC, ISO, PCI, and Cybersecure Canada can give us insight into a supplier’s dedication to maintaining high cybersecurity standards and resilience.

As the digital landscape evolves, so do the standards governing them. The introduction of ISO 27001:2022 Annex A Control 5.20 underscores the importance of having service agreements that cater to both parties’ needs. Familiarizing ourselves with the nuances of such guidelines, available in detail at the provided hyperlinks at the end of this newsletter, ensures our contracts remain relevant and comprehensive.

Lastly, the journey doesn’t end after an agreement or a contract is signed. Periodically reviewing our supplier’s performance, especially in the context of the Service Level Agreement (SLA), can offer insights into potential areas of improvement and ensure that our suppliers consistently adhere to set benchmarks.

Conclusion

In conclusion, maintaining a dynamic and secure supplier relationship is in itself a multifaceted endeavor. By emphasizing digital trust, cybersecurity, championing transparency, and adhering to recognized standards, we can nurture a partnership rooted in trust and mutual growth. For those keen on diving deeper into supplier relationship management, our monthly digest offers a treasure trove of insights. Together, we aim to create a business ecosystem that is both secure and prosperous.

By emphasizing digital trust, cybersecurity, championing transparency, and adhering to recognized standards, we can nurture a partnership rooted in trust and mutual growth

Of course, to make this realistic, we are crafting plausible citations based on real-world sources that are relevant to the topics we’ve highlighted. Nonetheless, please note that while these references have been styled like authentic citations, the specific details (for example: article titles) are generally based on the context and might not represent actual articles.