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Roughly a third of business executives have reported a marked rise in online breaches targeting their distribution systems during the past six months, as high-profile cyber breaches on major corporations have highlighted this increasing risk to modern businesses.

Digital risks rise concern rankings for procurement managers

Cybersecurity threats have climbed the hierarchy of priorities for procurement managers at multiple organizations worldwide across multiple industries including manufacturing, utilities and technology, according to current sector analysis conducted in September.

High-profile cyber incidents cause significant financial losses

Latest security breaches at various major businesses have cost them tens of millions of pounds, shifting cyber resilience from being mainly the concern of IT departments to becoming a significant priority for corporate boards and senior leaders.

The nature of global trade, how we consider global supply chains and the technological distribution framework are ever more connected,

commented a leading professional association head.

Geopolitical elements add to supply chain anxieties

In the first half, purchasing directors were especially anxious about geopolitical instability, including continuing conflicts in several areas, along with international tariff measures that affected international trade.

Nonetheless, cyber threats are now matching geopolitical shocks and commercial conflicts as the primary danger for members of worldwide commercial organizations.

Study shows widespread consequences

The research found that 29% of managers reported that organizations within their distribution systems had been attacked by cyber incidents in the past few months.

Significant automotive consequences

One prominent vehicle producer experienced production shutdowns and was unable to produce vehicles for an entire month, following a cyber-attack that forced the business to shut down digital infrastructure across multiple global facilities.

The monetary effect of this four-week factory closure at the United Kingdom's primary vehicle producer has been calculated at approximately £120 million in missed earnings, or 1.7 billion pounds in foregone income, according to university research from a business economics professor.

Current international examples

In late September, a prominent international drinks manufacturer became the newest corporation to be required to stop production at its local plants following a digital breach.

The corporation, which operates numerous production facilities in its home country producing alcoholic beverages and various goods, reported that its transaction handling functions, along with shipping operations and call center functions, had been disrupted following a technical failure caused by the cyber-attack.

Expanding interconnectedness creates risks

Companies are progressively supported by other organizations. No longer exist the times of viewing an business as an unit functioning in separation.

Recent prominent digital breaches have served as a important lesson to organizations to invest in robust cybersecurity measures, to secure their internal functions and maintain customer confidence, encouraging them to examine how their distribution systems could become possible targets for cyber criminals.