How to avoid cyber pitfalls of high-risk regions during global growth

The potential for cyber attacks increases in high-risk regions. Business leaders navigating SAP transformations must engage with the chief information security officer (CISO) and the security organization early in the transformation and prioritize cybersecurity measures to protect sensitive data and critical business operations.

The complexities of operating in high-risk regions can disrupt supply chains and manufacturing processes. Leaders must assess the entire supply chain process to understand dependence on third parties, sourcing of materials, security and resilience of their operations and supply chains.

Shared services can enhance efficiency but may also expose organizations to additional risks. Data protection must be a top priority, especially when handling sensitive information in compliance with local regulations.

Political instability and regulatory changes can impact business operations. Leaders must stay informed about geopolitical developments and assess their potential impacts on the organization.

Safeguarding IP is critical, especially in regions where IP theft is prevalent. Organizations must implement strategies to protect their innovations and proprietary information.

Before initiating an SAP transformation, align the business strategy and risk posture. When global businesses have shared services or manufacturing sites operating in high-risk regions with co-mingled business processes, businesses need to design with resilience in mind. Conducting a thorough risk assessment that evaluates cybersecurity, operational and geopolitical risks will highlight areas for evaluation. This should include an analysis of potential threats and vulnerabilities specific to high-risk regions and operations.

Take a threat-led approach to designing and implementing protections in your operations and SAP transformation. Invest in advanced cybersecurity technologies and practices to protect sensitive data and systems. Adopting a zero-trust security model, multi-factor authentication and encryption with continuous monitoring to detect and respond to threats in real time will enhance resilience. Integrating monitoring and alerting for sensitive data and critical assets will accelerate security operations’ ability to resolve incidents and minimize impact.

Develop a comprehensive data protection strategy that protects R&D and crown jewels, while also aligning with local regulations and international standards. Consider how data flows end-to-end during various business processes, what data transfer tools are used and what protections need to be applied. To reduce exposure, when viewing or transferring data, limit the data set to the absolute minimum amount of data needed to successfully complete the process or task. Also, consider whether data should be separated and localized within sovereign cloud estates. Implementing data minimization practices and access controls based on “need-to-know” principles can help reduce exposure. Consider leveraging data-sovereign cloud solutions to ensure sensitive data is stored and processed in compliance with local laws.

Diversify suppliers and manufacturing partners to reduce dependence on single-sourced materials or products and to balance reliance on high-risk regions. Critical infrastructure may be more susceptible to cyber-attacks, leading to operational disruptions. Increase supply chain visibility by utilizing advanced supply chain tools and technologies to monitor and track manufacturing and logistics in real time. This can help identify potential disruptions early and enable proactive responses to mitigate risks. Establish contingency plans to address potential disruptions and ensure business continuity. Develop and maintain an incident response plan specific to manufacturing operations. Ensure that all employees are trained on their roles in the event of a cyber incident. Crisis management simulations and tabletop exercises should be executed regularly.