From: Procurement Leaders
Recently, I was at a street art fair and saw a painting I really liked. The price was right, so I decided to buy it. I reached for my credit card and then suddenly stopped. Past headlines about data breaches at retail establishments and banks flashed through my mind. I put the credit card away and paid for the picture with cash. A sign of paranoia? Maybe. That was on 4 June 2015. Later that evening, news outlets across the country were reporting on the massive hacking that very day of the computer network of the US government personnel office. Someone stole identifying information of some 4 million federal government employees. It seemed that a little paranoia isn’t a bad thing after all.
Cyber crime is big and growing. A recent study reports that the cost of data breaches has grown 23% since 2013. The study asserts that the average consolidated total cost of a data breach today is $3.8m. CPOs should take notice. With all that’s at stake in supply chain management, including contracts, pricing, even shared intellectual property, cyber security is a major risk for corporations. Mitigating that risk, as one procurement executive told me recently, should be a major responsibility for procurement.
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