Managing Cyber-Threats Within Electronics Manufacturing

Estimated reading time: 3 minutes

The rise of the 4th Industrial Revolution (4IR) has brought with it digital interconnectivity that offers unprecedented opportunities for original equipment manufacturers (OEMs).

But with that openness there also comes risk—the threat of the loss of data, the theft of capital or intellectual property, and the disruption of access to systems or operational technology—all of which can impede businesses and impact on trade.

According to a report by the Manufacturers Organization EEF, the manufacturing sector now ranks as the third most targeted for attack, behind government systems and finance.

And yet the manufacturing industry would also appear to be one of the least protected against cybercrime.

In the EEF's latest survey of manufacturers, undertaken by cybersecurity research company RUSI, 48% of respondents reported that they had been subject to a cybersecurity incident at some time, with half being subject to either a financial loss or a disruption to business.

Many attacks however, appear to go unreported as businesses either fail to notice or choose not to report the event to avoid reputational damage.

Recognizing the Threat

With the increase of digitization, the threat to manufacturers is predicted to deepen, and 91% of businesses say they are investing in digital technologies in response to 4IR.

But the challenge of implementing appropriate risk mitigation remains a concern for many businesses.

Forty-one percent of manufacturers believe they lack access to the information they need to assess their specific concerns; while 45% aren't confident they have the right tools for the job and 12% of businesses admit they currently have no cybersecurity measures in place.

Shoring Up Cybersecurity Processes

As the report highlights, much of the impetus for change is being driven by customer expectation. 59% of manufacturers report that they've been asked by customers to demonstrate or guarantee the robustness of their cybersecurity processes.

And 58% of manufacturers themselves say they expect the same level of safe-guarding from businesses within their own supply chains.

Surprisingly though, 37% of manufacturers admit they aren't certain they would be able to demonstrate their own cybersecurity credentials to a customer.

The risk of cyber attack, says the EEF report, is no longer a case of 'if,' but 'when' and 'to what degree.'

And although 75% of respondents report that they monitor their software and systems, few would appear to have a comprehensive business strategy in place.

The extent of cybersecurity preparedness amongst manufacturers also appears to be highly varied. While some businesses have high awareness and have implemented robust measures, many manufacturers say that they are only just beginning to address the challenges.

There are currently no mandatory regulatory standards that govern cybersecurity practice withing the UK manufacturing industry. The UK government is increasingly driving the implementation of the Cyber Essentials standard, which is now mandatory for many public-sector contracts. But there is debate as to how appropriate it is for the specific needs of manufacturing.

The introduction of the EU General Data Protection Regulation (GDPR) in May 2018 has also proven to have had an impact on the manufacturing sector's approach to cybersecurity, with half of manufacturers saying that the introduction of GDPR had forced them to review their cybersecurity processes.

The Drive for Change

As the EEF report highlights, manufacturers, customers and suppliers are become increasingly aware of the threat of cybercrime. For many, cybersecurity is now accepted as a fundamental business requirement. And much of the impetus for change is predicted to come from manufacturers themselves as they strive to provide contractual assurances to their customers.

The National Computer Security Center (NCSC) has released guidance on basic cybersecurity risk-management principles which can be implemented by all businesses, regardless of their size:

• Use a firewall to secure your internet connection.
• Opt for the most secure settings for your software and devices.
• Protect yourself from viruses and malware by using antivirus software and only downloading manufacturer-approved applications or programs.
• Run the latest security patches to ensure your operating systems and software are up-to-date.

This article originally appeared on the JJS Manufacturing blog, which can be found here.