Midnight Deadline Approaches for ILA Labor Negotiations

The International Longshoremen’s Association (ILA) negotiations loom large as the countdown to midnight marches on. In 2023, the US imported $3.83 Trillion of products. This is more than 25x the size of imports ($151 billion) in 1977 – the last time we saw a full ILA strike commenced.   

Interos data showed direct impacts at top ports could be far-reaching with over 200,000 domestic companies at risk from direct missed imports.  

However, additional analysis from Interos indicates the scale dramatically increases when you look at the extended supply chain outside of top ports. 

ILA Strike: Devastating Consequences Beyond Direct Radius of Impact  

Additional analysis highlights the staggering impact of a strike across extended supply chains. Over 2.2 million companies are supplied by at least one of the companies that import commodities directly from any port facility heading for a strike.  

When extending our analysis to encompass the potential ripple effects of the strike, Interos data reveals over 3.7 million companies that, in turn, have trade relationships with those companies, and an additional 4 million companies one more tier out.

When looking at these three tiers in addition to the direct importers, over 11 million companies will be impacted, representing over 152 million unique relationships, and all their suppliers across the globe. 

In fact, globally, the countries with the most companies impacted by a strike will be the United States, India, United Kingdom, Germany, and Italy.  

Real-Time Monitoring of Extended Supply Chain Impacts 

These insights have been added in real time, and Interos will continue to closely watch these and all supply chain events as they unfold. 

Interos has created the world’s largest supply chain database, dynamically powered by AI, with over 11 billion relationships of more than 400 million businesses – to help companies manage supply chain risk in real time.  

To keep on top of potential supply chain disruptions, especially those from your indirect, extended supply chain relationships, speak to an expert today.  

Impending ILA Strike Threatens Economic Normalization

Author: Corey Ray, Senior Manager, Operational Resilience 

 

This summer, Interos alerted customers to the threat of labor strikes by various global unions that posed risk to the international movement of goods. These risks included actions by Canada’s freight rail workers, Canadian border services officers, and Indian port workers. Although more minor in scale, as of publication grain terminal workers at the Port of Vancouver are currently striking in an action that hinders agricultural exports while Boeing workers at U.S. West Coast factories remain on strike. 

We are now less than two days away from a far more significant disruption to the flow of global trade as reports suggest negotiations to prevent a strike on October 1st by the International Longshoremen’s Association (ILA) at East and Gulf Coast ports are unlikely to break the impasse.

Adding to the poor outlook for averting a shutdown of ports, Biden administration officials have yet to employ powers under the 1947 Taft-Harley Act to force workers to remain on the job during arbitration despite growing calls to exercise executive authority.  

The disruption would be far-reaching in scope as the ILA represents workers at major ports including the Ports of New York, New Jersey, Savannah, Houston, Charleston and Miami that combined account for 40% of goods shipped to and from the U.S.  

ILA Strike: A Magnitude Unknown 

There is little precedent for an ILA action of this magnitude. The last full strike by the union was in 1977, before the era of globalization when the U.S. imported only $151 billion in goods annually. That figure pales in comparison to the $345.4 billion imported in July of this year alone. Despite an 11-day port lockout in 2002 and ILA strike threats more recently, the impact of a shutdown of East and Gulf coast ports does not have a complete historical analogue that can guide businesses, especially if the strike persists for weeks.   

Global Implications of the ILA Strike 

According to Interos data, there are over 67 million trade records at the top ports alone, impacting more than 200,000 domestic companies that would be at risk of disruption from missed imports. These, in turn, are sourcing from approximately 74,000 foreign suppliers providing more than 5,684 different product types. The scope of impact is broad and would leave very few sectors of the economy untouched. 

Interos data further identifies more than 1,300 industries at risk of disruption due to sourcing goods through potentially impacted ports. The top 10 industries are highlighted below.  

The manufacturing sector would be disproportionately affected and at risk of cost pressures, just as prices for domestic producers have finally cooled from inflationary pressures.  


Consumer Retail Goods to Be at Risk Ahead of Holiday Shopping Surge

Leveraging proprietary Interos product category data, the table below highlights the top 10 most common product categories received by US entities specifically through the impacted ports on the U.S. East and Gulf Coast in the last five years. This data is also specific to goods imported in the month of October to reflect potential seasonality in impacted goods during an October 2024 ILA Strike. October also often sees a surge of imports ahead of the holiday shopping season. 

Overall impact is concentrated on consumer retail, medical supplies, automotive, and unfinished manufacturing goods. 

Note “NOS” stands for Not Otherwise Specified and is used across product category taxonomies. 

Threat to Economic Normalization: 

Global trade, and the post-Covid economic recovery, are already under threat from both trade wars and kinetic wars on multiple continents.  Additional threats to global trade range from Houthi attacks on shipping in the Red Sea to drought-induced reductions on Panama Canal shipping traffic.  

Within that context, the potential strike comes at a time in which global trade is under strain and thus puts a brief period of economic normalization at risk as U.S. inflation cools 

Port shutdowns would represent a classic supply-side shock to the economy, raising costs as the Federal Reserve is actively shifting away from its anti-inflation fight.  

Businesses should expect price increases on impacted goods and extended lead times.  

Meanwhile, congestion and cost increases should be expected on alternate shipping methods such as air freight and West Coast ports.  

If the strike persists for days or weeks, upstream supply chains will come under strain including Chinese exports, which already face additional catastrophic risk from Typhoon Bebinca 

The impact of the ILA strikes will be far-reaching. It is vital businesses have a plan in place and the ability to monitor if any of their direct or indirect suppliers stand to be affected. Anticipation and speed are the key to averting a costly disruption.  

Get Ahead of Future Labor Strikes with Interos: 

Interos’ continuous monitoring alerts quickly identify the potential impact of disruptions across their extended supply chain. This visibility empowers companies to get ahead of potential disruptions both upstream and downstream in their supply chain.  

For example, Interos users were alerted to previous trade disruptions such as the recent Red Sea attacks as well as cascading global factory disruptions impacting everything from German chemical facilities to European automotive plants at Tesla, Suzuki and Volvo. 

For a more detailed analysis of the potential impact of recent labor strikes, such as those in Canada and India, download our report below, or speak to an expert today.  

1.2 Million Businesses in Hurricane Helene’s Path of Destruction

Author: Julia Hazel, PhD 

Hurricane Helene has reached Category 4 hurricane status as of Thursday evening as it hit landfall over Florida’s Big Bend region with 140 mph sustained winds.  

Aside from the winds, catastrophic storm surge of potentially up to 10 to 20 ft is expected along Florida’s west coast, which the National Weather Service has deemed “Catastrophoc and unsurvivable”.  

Based on current forecasts and the storm’s speed, Helene’s impacts will extend well-beyond Florida, with North Carolina, South Carolina, Georgia, along with Florida all declaring states of emergency and many parts of these states under tropical storm warnings. The broad path may impact other states as well, as the storm is expected to stall over the Tennessee valley, bringing the threat of tornados, flooding, and destructive winds all along the eastern seaboard.  

Interos’ Catastrophic Risk model captures the latest path and forecast track while identifying the companies and industries most exposed to Helene, allowing for insight into expected supply chain disruptions in affected areas.   

According to data from Interos, over 1.2 million businesses are expected to experience wind speeds of at least 60 mph from Helene.   

Ports in the Gulf Coast of Florida have already shut down and closed shipping channels, further exacerbating potential impacts.  Major disruptions, including widespread power outages and airport closures, are expected as Helene is currently forecast to remain a tropical storm when its eye is over metro Atlanta.  Hundreds of flights have already been cancelled as of Thursday afternoon, notably from Atlanta, Tampa, and Fort Meyers airports.   

Helene is expected to impact several key industries. There are anticipated impacts to agriculture and crops, especially given that Hurricane Idalia led to an estimated 78.8 to 370.9 million dollars of agricultural production losses in Florida alone last year.   

In total, Interos identified over 1100 unique industries at risk from Helene.  Of these industries, the freight transportation and trucking industries are among the most likely to experience impacts, comprising over 3% of suppliers in the path of Helene.  The wide array of potential industry impacts is also reflected in the large number of products exported by impacted suppliers.  Over 380 products were identified, ranging from plastics, vehicle parts, and machinery to cosmetics and apparel.   

As extreme weather events like hurricane Helene become increasingly commonplace, embracing global, real-time hazard monitoring solutions like Interos’ catastrophic risk technology are crucial for proactively deterring and mitigating supply chain disruptions.  

In 2023, Cooper University Health Care used Interos to show that four of their vendors for critical medical supplies were in the path of a hurricane coming through the Gulf and across the Panhandle of Florida.  Dr. Thomas Runkle, Vice President, Supply Chain contacted each supplier to assess if they were shutting down.He was then able to place an order for a couple days’ worth of supplies before one of their vendors shut down that afternoon.  

Dr Thomas Runkle summed it up: “Reacting just doesn’t work anymore.” You have to be proactive and get ahead of an event.  

Interos risk alerts provided both the speed and the alerts needed to get in front of costly disruptions. 

Take control of supply chain disruptions before they escalate.

 

EU Deforestation Regulation Approaching: Fines for Non-Compliance are Steep

Author: Julia Hazel, PhD, Lead Computational Climate Scientist and Nicolas de Zamaroczy, PhD, Lead Computational Social Scientist

Companies can no longer ignore the urgency to reduce their deforestation impact- especially if they want to continue doing business in the European Union.   

Update on Nov 14, 2024:

As of November 14, 2024 the European voted to postpone the EU Deforestation Regulation (EUDR) compliance deadline by 12 months to December 30, 2025. Companies must certify that their supply chains are free of companies linked to deforestation or risk significant fines. Similar to the EU’s General Data Protection Regulation (GDPR), this law is not limited to EU companies, but rather to any companies doing business within the EU. 

The postponement gives companies a chance to get in front of the upcoming regulations. The extension does not remove the need to act swiftly but rather allows companies runway to get it right in the face of rising global legislation such as Australia’s Mandatory Climate-Related Financial Disclosures.

Unfortunately, despite numerous global treaties and corporate attestation supporting deforestation-free supply chains over the past decade, deforestation rates have not fallen.  

Too often corporate disclosures are aspirational and lack the visibility required to identify potential supply chain linkages to deforested locations and commodities.  

The EUDR is arguably the first major global initiative requiring corporate accountability for any connections to deforestation. With other similar regulations proposed or under review, this new regulatory risk shows no signs of retreating and will require companies to quickly gain that visibility or risk significant financial and reputational damage. 

What is the EU Deforestation Regulation? 

The EUDR has three main goals:  

  1. to prevent deforestation 
  2. to cut greenhouse gas emissions, and  
  3. to prevent further agricultural expansion and biodiversity loss.   

The EUDR regulation stipulates that any operator or trader of seven large key commodities – palm oil, cocoa, cattle, coffee, timber, soy, and rubber – as well as their derived products, must provide evidence that these commodities and products did not originate from recently deforested regions or contribute to forest degradation.   

Additionally, operators and traders must certify that their products comply with all relevant laws of the source country, including labor, anti-discrimination, indigenous rights, and pollution regulations.   

Failure to comply could result in: 

  • fines of up to 4% of a company’s revenue in an EU member state 
  • criminal charges, and  
  • reputational damage 

Beyond Direct Commodities: Far-Reaching Impact Throughout the Supply Chain 

The goal of the EUDR is to limit demand for products grown in recently deforested areas, thereby reducing a primary incentive for forest loss.  Scientists agree that deforestation is a major cause of climate change, with tropical deforestation accounting for roughly 20% of annual Greenhouse Gas (GHG) emissions worldwide.   

One of the primary reasons forests are cleared is for agricultural expansion, and the seven key products targeted by the EUDR were chosen based on scientific evidence linking their production to logging activity and illegal deforestation.   

While stipulations involving sourcing these commodities directly impact the food and agriculture industries, their derived products involve a wide array of industries.  For example, most lumber and natural rubber by-products will be included in the legislation, affecting everything from office furniture to rubber gaskets and from cardboard to air bags.  Textiles, automobiles, finance, fuel and energy represent just a handful of the industries that would be impacted by deforestation regulations.   

Moving Beyond the Say-Do Gap 

The EUDR is a landmark regulation that requires action beyond corporate disclosures and zero-deforestation commitments.  Zero deforestation commitments are a crucial part of corporate governance around deforestation, and 60% of corporations with the largest exposure to deforestation have set at least one policy on deforestation.  However, while zero-deforestation commitments represent a good step towards addressing corporate deforestation risks, their success in mitigating large-scale deforestation has been minimal.   

These commitments often lack immediate or near-term deadlines, clear implementation plans, and traceability to indirect suppliers, to name a few drawbacks.  Global Canopy’s Forest 500’s most recent report, which lists and ranks the policies and performance of 350 companies and financial institutions with greatest exposure to deforestation risk, reveals that two-thirds of companies with commitments are not publishing evidence of their implementation. This underscores the fact that policies and commitments are only useful if they are implemented and achieve results.   

More Than Just a “Box-Ticking Exercise” 

The EUDR underscores the fact that addressing deforestation at the corporate level is complex and requires a data-driven, multi-faceted approach. As PWC reports, “EUDR Compliance is much more than a box-ticking exercise” and “regulatory scrutiny will be intense.”   

One crucial component surrounds supply chain transparency and traceability.  To properly perform due diligence, companies must have insight into their direct and indirect suppliers to track products back to their origin, which allows for the identification of potential risks.  

Products need to be mapped to their source plot of land using precise geospatial information, such as in the form of satellite and remote sensing data, to ensure deforestation did not occur in the recent past where at-risk commodities were sourced.  

The country of origin is also significant as certain countries are higher risk for producing goods sourced from deforested areas.   These diverse pieces of information are necessary and provide actionable insights for corporations to mitigate deforestation risks. 

Beyond the EUDR – US Deforestation Due Diligence on the Horizon 

Corporate supply-chain due diligence will become commonplace as regulations such as the EUDR become the norm.

For instance, similar legislation to the EUDR is being proposed in the US with the Fostering Overseas Rule of Law and Environmentally Sound Trade (FOREST) Act, which would prohibit the import of palm oil, soya, beef, cocoa and rubber products linked to illegal deforestation.  

With the December compliance deadline fast approaching, corporations must act swiftly to invest in solutions that give them insight into their supply chain to mitigate risks and remain compliant.  

Interos is ahead of the game in mapping deforestation risks throughout the entire supply chain.

Hezbollah Device Explosions: A Stuxnet Moment for Supply Chain

Author: Dr. Andrea Little Limbago 

An Inflection Point

Almost six years ago, Bloomberg published a report on Chinese government infiltration of 30 US companies through the technology supply chain. This report was highly controversial within the cybersecurity community and remains openly disputed regarding the validity of inserted ‘spy chips’. Since then, there has been less focus on infiltrated technology supply chains, as the pandemic and trade wars shifted attention away from espionage and toward more traditional industrial policy and risky businesses within the supply chain ecosystem. 

On September 17 and 18, 2024, infiltrated pagers and walkie talkies exploded across Lebanon, escalating the decades-long conflict between Israel and Hezbollah. While investigations remain ongoing, reports point to Israel infiltrating a complex supply chain of devices sold in Hungary, and authorized to sell on behalf of a Taiwanese company, Gold Apollo. While the company sold devices to the broader population, those sold to Hezbollah contained the explosive PETN. As more information becomes available, a picture will likely unfold of complexity and extremely targeted backdoor infiltration of a technology supply chain.  

This past week’s attacks in Lebanon are an inflection point, expanding technology supply chain risks toward supply chain sabotage, and shifting all rules of engagement in supply chain security and modern warfare. Whether or not ‘spy chips’ occurred in the past, given the shift in norms, a line has been crossed, rendering technology supply chain infiltration a growing supply chain security risk in a tenuous geopolitical environment. 

New Rules of Engagement in Modern Warfare 

The supply chain infiltration behind the attacks is on such a distinct scale and scope, it is reminiscent of the turning point from the Stuxnet cyber attacks, described as the world’s first digital weapon. In 2010, reports surfaced that several zero days exploits simultaneously sabotaged Iranian nuclear enrichment facilities. Most research identifies U.S. and Israeli intelligence as the creators of the exploits, which weren’t widely noticed until they spread beyond the Natanz facility.  

Viewed as the first digital weapon to cause physical damage, it shifted all cyber norms and rules of engagement and opened Pandora’s Box to the modern cyber threat landscape. From the 2012 Saudi Aramco attacks where wiper malware destroyed over 35,000 computers to Russia’s BlackEnergy cyber attacks on the Ukrainian energy grid in 2015 and 2016 to Saudi Aramco to Iran’s failed penetration of New York’s Rye dam, physical infrastructure by cyber attacks is no longer unexpected or unprecedented. In fact, earlier this year FBI director Christopher Wray detailed how China is burrowed deeply within US infrastructure.  

The Tipping Point for Security Risk 

In a similar manner, just as Stuxnet upended the norms of cyber behavior and physical destruction, the explosive devices used against Hezbollah will upend all norms behind supply chain infiltration and destructive effects. There already has been a growing national and economic security concern over risky businesses within the supply chain ecosystem. Since 2016, the US has added thousands of companies to a range of sanctions lists, many of which are deemed national security risks.  

Five years ago, the Pentagon blocked military from purchasing phones made by Huawei and ZTE due to national security risks. This has been a growing trend across the globe, as India blocked Chinese apps, China blocked Kaspersky and Semantic, Australia removed Chinese security cameras and so on. These have often been coined backdoor risks, as companies legally enter a supply chain ecosystem without any need for obfuscation. 

These have generally focused on software, not hardware, backdoors into systems. Last week, we may have witnessed the tipping point for hardware backdoor supply chain security risk based on the insertion of illegal or unknown physical parts. While distinct in its execution, there has been growing concern over the security of the hardware supply chain. 

The US CHIPS and Science, in part, targets this risk by incentivizing the manufacturing of semiconductors domestically. Nevertheless, the exploding devices manifest the real-world impact when foundational technologies are used as Trojan horses to carry out military objectives. As we have seen with Stuxnet, once that Pandora’s box is opened, it is a game-changer in the risk landscape and global norms. 

How Can Companies Protect Themselves in this New Norm? 

To prepare for yet another significant disruption shaping the new normal, there are several steps organizations can take.  

First, foundational risk approaches still hold true but require even greater diligence. Perfunctory risk processes are inadequate for this risk landscape. Know your supplier (KYS) takes on even greater importance, not just within direct suppliers but across the entire supply chain ecosystem. This, in turn, requires augmented visibility across your supply chain, a difficult feat due to the hyperspecialized and complex supply chains built over the last few decades where geopolitics was not taken into account. 

Gaining that visibility is just the start, additional context is required. For instance, are any of the thousands of restricted companies present several tiers within your supply chain? In many cases, these companies have already been linked to data exfiltration, it is not a great leap to consider hardware infiltration from these same technology companies.  According to Interos data, 148 (~30%) S&P 500 companies have a direct supplier relationship with a banned company, risking severe civil and criminal penalties, 19% of which are in the Computer and Electronic Product Manufacturing industry.  Beyond these direct (tier-1) suppliers, virtually every S&P 500 company has sub-tier (tier-2, tier-3 and beyond) supplier relationships with at least one at-risk or restricted company.  

This has always posed a regulatory risk, but the national and economic security risks must also feature in supply chain security risk assessments. While last week’s attacks were not via a restricted company, those technology companies on restricted lists represent a more probable pathway to hardware infiltration and warrant heightened alert. 

Tracking the latest in restricted companies is difficult as there is no single consolidated list across all U.S. and international organizations. Fortunately, Interos simplifies this process by surfacing several dozen restrictions lists across the US, Five Eyes, and international governmental organizations, extended across the entire supply chain ecosystem. These companies, especially those in technology, are at the highest risk of technology supply chain infiltration. These companies do not only pose a regulatory risk but could also interdict data or sabotage on behalf of adversaries. 

The stark reality of this new era is that the geopolitical risk stems much broader than restrictions – companies and governments need visibility into all areas of supply chain risk: financial, cyber, ESG, geopolitical and catastrophic risk.

In short, the globalized era of entangled supply chains absent geopolitical considerations is over. 

Supply Chain Security: Time to Double Down 

Almost a decade ago, the fictional political thriller Ghost Fleet imagined a future war beginning with supply chain infiltration. In this futuristic scenario, China hacks the U.S. electronics supply chain, disrupting everything from navigation systems to fighter jets. The digital revolution – or the fourth industrial revolution – continues to shorten the time frame between futuristic scenarios and modern reality.  

As Stuxnet demonstrated almost fifteen years ago, the shifting cyber attack landscape quickly expanded beyond governments and into the public sector. The device explosions in Lebanon similarly crossed a new line and will accelerate the pace at which the technology supply chain is exploited by government and non-government actors alike. Whether the Bloomberg report proves valid or not, the supply chain infiltration of the devices introduces similar supply chain security risks – it’s no longer a matter of if, but when a technology supply chain infiltration will occur again.  

Just as software backdoors have increased in prevalence, the same may soon be true of hardware backdoors, making it all the more critical for a fresh look and reprioritization of supply chain security. 

We are here to help.

 

 

Taming Digital Supply Chain Threats: NYSE CISO’s Battle Plan for the AI Era

Author: Dianna O’Neil 

In Interos’s latest Voices of Innovation session, NightDragon Founder & CEO Dave DeWalt, tackled today’s new breed of digital supply chain threats with Steve Pugh, Chief Information Security Officer (CISO) of the Intercontinental Exchange, Inc., better knowns as the New York Stock Exchange. As CISO, Pugh is responsible for securing critical economic infrastructure across multiple subsidiaries, geographies, and regulatory jurisdictions. 

Together Pugh and DeWalt explore the fluid landscape of digital risk and the critical role of AI supply chain risk intelligence in addressing escalating threats.  

Speed and Scale: The Core Challenges 

Pugh emphasized that the fundamental issues in digital supply chain risk management are the speed and scale of dispersed and sophisticated threats originating from bad actors, cyber criminals, adversarial nations, and other dynamic and fast-moving entities all over the world. “The key for a lot of my peers and colleagues is how do we keep up and innovate at that same speed [as bad actors], and then match the scale?” Pugh emphasized the staggering complexity of today’s attacks underscore the need for rapid adaptation and scalable solutions in the face of evolving risks. 

Building on this, DeWalt described the current global threat environment as “the perfect supply chain risk storm,” highlighting flashpoints with implications for digital supply chain stability.  

  • Heightened geopolitical tensions 
  • Regional conflicts 
  • Shifting dependencies on nations 
  • Increased cyberattacks targeting supply chains and third-party providers 

Unmasking “Unknown Unknowns”

Against this backdrop, Pugh noted the need to effectively communicating supply chain risk to high-level stakeholders, including corporate boards, to align on critical threats and move from insight to action, aided by emerging technologies that allow enterprises to take a proactive security posture. 

Pugh emphasizes two domains: visibility and control. “At the board level, we talk about it in two domains. The first is visibility, and then the second is control. And you really can’t talk about control unless you have the right level of visibility in your supply chain.” He focused on the critical importance of comprehensive supply chain visibility, using AI risk mapping and monitoring, as a prerequisite for effective risk management. 

Pugh elaborated by referencing Donald Rumsfeld’s “known knowns, unknown knowns, and unknown unknowns” matrix. He stated, “There’s a lot of unknown unknowns… that’s where the complexity really gets tough.” To illustrate this complexity, he shared an example from the experience of colleague at external engineering firm: that person experienced a catastrophic incident caused by “one bolt from a supplier somewhere in the world” failing—not due to malice but simply due to negligence or defect. He drew a parallel with third-party software and technology providers, noting how vulnerable third-party software solutions from obscure tiers of the supply chain can have significant consequences across interconnected digital supply chains. 

AI to the Rescue

Both DeWalt and Pugh expressed optimism about the role of AI and advanced risk intelligence in addressing supply chain challenges, particularly the ability of AI to deliver enhanced visibility and risk analysis at speed and scale. 

AI enables the ingestion and analysis of vast amounts of data from various sources, providing insights into complex supply chain relationships in real-time. Pugh explained, “AI can come alongside us and almost be a companion, to scale up and do so at speed and reason over all of these different data points.” Given the hundreds of millions of businesses globally, with billions of sub-tier supply chain interdependences, this capability is crucial for managing multi-tier risks effectively. 

Pugh detailed three primary ways AI is enhancing software development and security: 

  • Reasoning over code to find and fix defects quickly 
  • Generating cleaner, more secure code 
  • Enabling co-development with AI for native integration 

“We end up in this place where… you end up with some really good code that has fewer defects,” Pugh noted. He elaborated on how AI can create a “virtuous software development cycle” that significantly reduces potential vulnerabilities over time. 

Converging Physical and Cyber

Pugh’s role at NYSE encompasses both physical and cybersecurity—a trend that DeWalt sees increasing across industries. This convergence allows for a more comprehensive approach to risk management since physical threats can impact digital assets, unleashing a ripple effect with devastating financial consequences. 

Amid these changing dynamics, Pugh sees the CISO role evolving into that of a “risk business partner” to company leadership. “I think the role of the CISO is evolving to become more of a risk business partner,” he explained. This broader perspective allows for a more holistic approach to security and risk management across an organization. 

Channeling Optimism

As digital supply chain risks continue to evolve and expand, integrating AI technologies and continuous supply chain lifecycle risk intelligences alongside converging physical and cybersecurity offers promising solutions. Pugh’s final thoughts reflected a promising outlook: “I am optimistic on AI… I think it’s something that will certainly help us.” By embracing these generational innovations while maintaining a real-time view of risk management, organizations can better navigate the complex and fraught landscape of global supply chains in the digital age. 

Technology such as Interos Watchtower™ utilizes AI to continuously map and monitor relationships across the risk lifecycle to help enterprises mitigate physical and digital threats before they escalate to crisis. 

To learn more about how Interos can fortify your supply chain, contact us