Industry-Specific Software Solutions: The CDK Global Equivalent for Every Sector
The Hidden Dangers of Supply Chain Dependencies: A Lesson from CDK Global
In today’s interconnected business landscape, every industry has a weak link that can bring entire sectors to a grinding halt. Two years ago, the BlackSuit ransomware group’s breach of CDK Global’s network forced the company’s software offline, crippling the car dealership industry and resulting in millions of dollars in lost revenue.
A Hidden Vulnerability in the Supply Chain
CDK Global, a small software provider, is a prime example of a hidden vulnerability in the supply chain. The company’s software powers over 15,000 car dealerships across the United States, making it a critical linchpin in the industry. However, its relative anonymity prior to the breach highlights the often-overlooked nature of these types of vulnerabilities.
The Importance of Rethinking Digital Infrastructure Protection
The incident serves as a stark reminder of the importance of rethinking the protection of our shared digital infrastructure. Every sector has its own unique set of dependencies that can have far-reaching consequences if compromised. For instance, a glitch in a digital lending platform could disrupt financial transactions worldwide, while an outage at a real estate management platform could delay rent payments and cash flows for tenants and landlords.
According to Verizon’s 2025 Data Breach Investigations Report, 30% of breaches stem from third-party vendors, double the number from the previous year. This surge in third-party breaches can be attributed to the increasing reliance on specialized vendors, which in turn depend on their own web of fourth and fifth-party providers. As a result, organizations are exposed to cascading risks that can be difficult to identify and mitigate.
The Challenge of Managing Third-Party Vendor Risk
The challenge of managing third-party vendor risk is a daunting task for many organizations. With the sheer number of vendors, paperwork, and potential bad outcomes, it’s no wonder that security teams often focus exclusively on direct vendor relationships, leaving them vulnerable to risks buried deep in their extended supply chains.
The Limitations of Traditional Risk Management Approaches
The problem lies in the fact that traditional risk management approaches are no longer effective in today’s complex supply chain landscape. Point-in-time assessments, which assume static risk, are no match for the dynamic and ever-changing nature of threat actor activity. Moreover, third-party risk teams often lack the necessary resources, including personnel, budget, and time, to effectively manage the growing number of vendors, cyber risks, and regulations.
A New Approach to Supply Chain Risk Management
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