The Importance of Proactive BIA and DR Testing in Light of Recent Breaches

It has been a busy year for supply chain interruptions due to cyber breaches. We have received many calls from our clients asking for “incident response” to help navigate the impact on their business. Unfortunately, little can be done when the breach is upstream in your supply chain. You can only control what you have control over, and while the flow-down impacts have been very painful and costly, it is a good reminder to understand the impact suppliers have on your overall business and resiliency.

The significant breaches at Change Healthcare and CDK Global have highlighted the critical importance of proactive Business Impact Analysis (BIA) and rigorous Disaster Recovery (DR) testing for organizations across all industries. As cybersecurity threats continue to evolve, companies must review their existing suppliers, insist that suppliers demonstrate a commitment to cyber resiliency, and then plan how to operate should that supplier be unable to provide service for days or weeks.

Change Healthcare experienced a data breach that exposed sensitive patient information, disrupting services and compromising patient care. Similarly, CDK Global, a prominent provider of technology solutions for the automotive industry, suffered a breach that affected its clients' operations and exposed sensitive data.

These incidents underscore the vulnerabilities that can exist anywhere, and you are only as strong as the weakest link in your supply chain. They also highlight the need for comprehensive strategies to mitigate risks and minimize the impact of such breaches.

"The recent incidents at Change Healthcare and CDK Global highlight the vulnerabilities within even the most sophisticated infrastructures. Our research indicates that organizations that conduct regular BIA and DR tests are significantly more resilient to cyber threats. Proactive measures, including continuous monitoring and employee training, are essential components of a robust cybersecurity strategy." – Forrester Research, The State of Disaster Recovery Preparedness 2024

The Role of Business Impact Analysis (BIA)

A Business Impact Analysis (BIA) is critical to any organization's risk management strategy. It involves identifying and evaluating the potential effects of disruptions to business operations. A thorough BIA helps organizations prioritize their resources, understand the criticality of various business functions, and develop effective recovery strategies. Industry experts emphasize the importance of BIA in today's threat landscape:

"In the wake of high-profile breaches, the need for proactive Business Impact Analysis and Disaster Recovery planning has never been more critical. Organizations must understand that BIA is not a one-time activity but an ongoing process that evolves with the business. Regularly testing and updating DR plans ensures that companies are prepared for the unexpected and can quickly recover from disruptions." – Gartner, 2024 Strategic Roadmap for IT Resilience

Disaster Recovery (DR) Planning and Testing

While having a DR plan is essential, testing that plan is equally important. Regular testing ensures that the plan is effective and that all stakeholders understand their roles and responsibilities. It also helps identify any gaps or weaknesses that need to be addressed.

"As cyber threats become more advanced, the importance of proactive disaster recovery planning cannot be overstated. A comprehensive BIA helps organizations prioritize their critical assets and develop effective recovery strategies. Regular testing of DR plans is crucial to ensure that they remain effective and up-to-date. Companies that invest in these proactive measures are better positioned to mitigate the impact of breaches and maintain business continuity." – IDC, 2024 IT Resilience and Business Continuity Report

Proactive Measures for Enhanced Resilience

The breaches at Change Healthcare and CDK Global serve as wake-up calls in two areas. 1) Cyber security teams must proactively assess the cyber hygiene and resilience of vendors in their supply chain that have a meaningful impact on daily operations, and 2) Disaster recovery teams need to include their supply chain in the Business Impact Assessment and test how operations will survive when a supply chain partner is unavailable for extended periods of time.

CDW has the expertise and experience to help you:

1. Assess your Supply Chain: Review all suppliers and weigh their impact on business operations tied to revenue.
2. Conduct Regular BIA: Regularly update and review your BIA to ensure it reflects the current business environment and potential threats.
3. Develop Comprehensive DR Plans: Create detailed DR plans that cover all critical aspects of the business, including technology, personnel, and processes.
4. Perform Regular Testing: Facilitate DR tests to validate the effectiveness of your plan and ensure that all stakeholders are prepared.
5. Implement Continuous Monitoring: Continuous monitoring of systems and networks helps detect and respond to threats in real-time.
6. Employee Training: Educate employees on their roles in the DR plan and the importance of cybersecurity best practices.

Organizations cannot afford to be reactive in an era where cyber threats are becoming increasingly sophisticated. The recent breaches at Change Healthcare and CDK Global highlight how disruptive supply chain interruptions can be, refocusing the importance of a thorough business impact analysis and regular disaster recovery testing.