Is Your Supply Chain Compliant? Third-Party Risk in 2025

As organisations grow increasingly interconnected, supply chains have become both their backbone and their blind spot. In 2025, third-party risk is no longer a theoretical concern—it’s a regulatory, financial, and reputational reality. With cyber threats becoming more sophisticated and regulatory scrutiny tightening, ensuring your supply chain is compliant and secure is no longer optional.

The Expanding Attack Surface

Today, it’s rare for any organisation to operate in a vacuum. From cloud service providers and software vendors to logistics partners and outsourced IT, third-party relationships are foundational. But every one of these connections creates potential entry points for cybercriminals.

In recent years, we’ve seen a surge in supply chain attacks—like the infamous MOVEit breach and the SolarWinds compromise—where the initial target wasn’t the primary organisation, but a vulnerable third party. These incidents demonstrated how attackers can infiltrate multiple victims through a single weak link.

Regulation Is Catching Up

The UK’s regulatory landscape has evolved to reflect this growing risk. With the NIS2 Directive set to be adopted more widely across Europe and affecting UK firms working within or with EU entities, the expectations around third-party security are shifting fast. Additionally, regulations such as GDPR, PCI DSS v4.0, and sector-specific frameworks are increasingly holding organisations accountable not only for their own security but also for the security of their suppliers.

Regulators are asking: Do you know who your vendors are? How are you assessing their cybersecurity posture? What controls are in place to ensure ongoing compliance?

Key Third-Party Risk Areas in 2025

1. Lack of Visibility
   Many companies still struggle to maintain a complete inventory of their suppliers, particularly in complex or global supply chains.

2. Inadequate Due Diligence
   A single onboarding questionnaire is not enough. Ongoing assessment and threat monitoring are essential.

3. Data Handling and Privacy
   With data flowing across borders and systems, knowing where and how your data is being handled by third parties is crucial for GDPR and general risk management.

4. Inconsistent Contracts and SLAs
   Clear cybersecurity requirements, audit rights, and incident response expectations must be codified in legal agreements with all vendors.

5. Fourth-Party Risk
   Your vendors have vendors. If your third party is compromised via their third party, are you still protected?

Steps to Strengthen Your Supply Chain Security

• Implement a Vendor Risk Management Programme
  This should include supplier mapping, tiering based on risk, and formal evaluation processes.

• Mandate Security Standards
  Use frameworks such as ISO 27001 or Cyber Essentials to set a baseline for third-party security.

• Automate Monitoring Where Possible
  Tools like SecurityScorecard, BitSight, or native features in your SIEM can help track vendor risk in real time.

• Conduct Regular Audits and Penetration Tests
  These should cover not just your infrastructure, but how third-party integrations might be exploited.

• Develop an Incident Response Playbook That Includes Vendors
  Make sure your suppliers know how to engage with you if an incident occurs—and test the process regularly.

Conclusion

In 2025, third-party cyber risk isn’t just a technical challenge—it’s a business imperative. Boards are asking questions, customers are demanding transparency, and regulators are enforcing consequences. Building a resilient, compliant supply chain means embedding cybersecurity into procurement, contracts, and ongoing vendor relationships.

If you’re not already asking, “Is our supply chain compliant?”, now is the time to start.