The Importance of Cyber Supply Chain Risk Management for Government Contractors

Cyber threats are omnipresent in this day and age. From the recent attack on a California healthcare provider that paralyzed emergency rooms nationwide to the MOVEit software hack that affected multiple federal agencies, cyberattacks are becoming more frequent and sophisticated. Such breaches not only disrupt services but also cost industries and governments billions each year.

The federal government, recognizing the gravity of the situation, has introduced a series of regulations aimed at bolstering the nation’s cybersecurity defenses. Notable among these are Section 889 of the National Defense Authorization Act, Executive Order 14028 on Improving the Nation’s Cybersecurity, and the Cybersecurity and Infrastructure Security Agency’s Software Bill of Materials (SBOM) guidance.

For businesses eyeing the lucrative $700 billion federal contracting market, these regulations underscore a clear message: Cyber Supply Chain Risk Management (C-SCRM) is not just an option; it’s a necessity.

1. Embrace Software Bill of Materials (SBOMs) SBOMs are becoming indispensable in the cybersecurity landscape. When businesses acquire or outsource software capabilities, they often remain unaware of potential cyber risks embedded within. SBOMs provide a clear picture of these risks, allowing companies to:

• Identify third-party risks in software components.
• Detect malware during the development phase.
• Track known vulnerabilities.
• Anticipate upstream risks before they become a known threat.

Companies that prioritize SBOMs not only enhance their security but also offer their customers a transparent view of their software’s ingredients, fostering trust.

2. Integrate New Requirements from the Get-Go Incorporating SBOMs and other requirements at the outset of the development process is crucial. While it may seem like an added burden, starting with a comprehensive approach involving all stakeholders – from legal experts to government advisors – streamlines the process. This collaborative approach not only saves time and money but also positions the product as less risky compared to competitors.

3. Collaborate with Regulators The federal government is at the forefront of establishing robust cybersecurity guidelines. Agencies like the National Institute for Technology and Standards provide invaluable guidance. By viewing these agencies as allies rather than adversaries, businesses can navigate the complex regulatory landscape more effectively. For instance, medical device manufacturers have successfully partnered with the Food and Drug Administration to set new SBOM standards in their industry.

4. View C-SCRM as a Long-Term Commitment While adhering to C-SCRM standards might increase initial costs, the long-term benefits are undeniable. A single data breach can cost a staggering $9.44 million. Beyond the financial implications, breaches can tarnish a company’s reputation and erode trust. For businesses serving the federal government, any C-SCRM vulnerability can disrupt essential services nationwide.

5. Prioritize Transparency Trust is the cornerstone of any business relationship, especially when dealing with the federal government. By investing in securing the cyber supply chain and operating transparently, businesses can establish themselves as reliable partners.

The evolving regulatory landscape, with its emphasis on C-SCRM and SBOM visibility, is setting a higher standard for companies vying for government contracts. While the initial investment might seem steep, the long-term benefits in terms of reputation, security, and resilience are invaluable. In a world where data breaches are becoming the norm, a robust C-SCRM system is not just a good-to-have; it’s a must-have.

For businesses seeking guidance in the government marketplace, FedBiz Access stands as the leading government business development firm. To navigate the complexities of government contracts and ensure your cyber strategies are up to par, schedule a complimentary consultation with a FedBiz Specialist today.