Cyber security risks in globalized supply chains: conceptual framework

Abstract

PurposeThe purpose of this study is to examine cyber security risks in globalized supply chains (SCs). It has been seen to have a greater impact on the performance of SCs. The information and communication technology of a firm, which enhances the efficiency and effectiveness in the SC, could simultaneously be the cause of vulnerabilities and exposure to security threats. Researchers have primarily focussed on the cyber-physical system (CPS) vulnerabilities impacting SC. This paper tries to categorize the cyber security risks occurring because of the SCs operating in CPS.Design/methodology/approachBased on the flow of information along the upstream and downstream SC, this paper tries to identify cyber security risks in the global SCs. It has further tried to categorize these cyber security risks from a strategic point of view.FindingsThis paper tries to identify the various cyber security risk and cyber-attacks in globalized SC for improving the performance. The 16 cyber security risks have been categorized into three categories, namely, supply risk, operational risk and demand risk. The paper proposes a framework consisting of different cyber-attacks across the information that flows in global SCs along-with suitable mitigation strategies.Research limitations/implicationsThe paper presents the conceptual model of cyber security risks and cyber-attacks in globalized SCs based on literature review and industry experts. Further validation and scale development of these risks can be done through empirical study.Practical implicationsThis paper provides significant managerial insights by developing a framework for understanding the cyber security risks in terms of the drivers of these risks and how to deal with them. From a managerial perspective, this framework can be used as a decision-making process while considering different cyber security risks across the stages of globalized SCs.Originality/valueThe major contribution of this study is the identification and categorization of cyber security risks across the global SCs in the digital age. Thus, this paper introduces a new phenomenon to the field of management that has the potential to investigate new areas of future research. Based on the categorization, the paper provides insights on how cyber security risks impact the continuity of SC operations.