Supply Chain Cyber Risk Is Catching Up And Many Philippine Organizations Are Not Ready

Philippine organizations are becoming increasingly exposed to cyber risk through their third-party relationships, yet many remain underprepared to manage that exposure effectively. Recent findings from a regional supply chain defense survey reveal that only a small portion of organizations in the Philippines have an established or optimized approach to third-party cyber risk management. Compared to peers across the Asia-Pacific region, local organizations rank among the least mature when it comes to systematically identifying, assessing, and mitigating cyber risks introduced by vendors and partners.

This gap is especially concerning given how dependent modern operations have become on external providers. From cloud services and software vendors to logistics partners and outsourced support functions, third parties are now deeply embedded in day-to-day business processes. As these ecosystems expand, so does the attack surface. The survey highlights the scale of the problem: every Philippine organization surveyed reported being negatively impacted by a supply chain–related cyber breach in the past year, with a significant number experiencing multiple incidents originating from third parties.

Despite the growing threat, adoption of dedicated third-party risk management platforms remains inconsistent. Many organizations still rely on manual processes or ad hoc assessments, making it difficult to maintain visibility across a rapidly growing network of vendors. Challenges cited include internal resistance to change, lack of coordination across stakeholders, and difficulties getting suppliers to complete risk questionnaires or provide accurate information. These obstacles point to deeper issues around governance, accountability, and program ownership.

At the same time, spending on third-party risk management is clearly rising. Nearly all organizations surveyed increased their investment over the past year, focusing on remediation, reporting, and ongoing monitoring of suppliers. This suggests a strong awareness of the problem, but also raises a critical question: are organizations building strong foundations first, or investing in tools before processes and alignment are in place? Across the region, integration with broader enterprise risk and governance frameworks remains a top operational challenge, indicating that many programs are still fragmented.

Artificial intelligence is beginning to play a role in addressing these gaps. More than half of organizations plan to use AI to help manage risk questionnaires and monitor threats across their supply chains. While this can improve efficiency and scale, it also reinforces the need for clear governance and skilled oversight. Without a solid framework, even advanced tools may struggle to deliver meaningful risk reduction.

Looking ahead, the urgency will only increase. Nearly all organizations expect their third-party networks to grow, with many anticipating steady expansion over the next few years. Each new vendor introduces potential vulnerabilities, making third-party cyber risk management a core component of organizational resilience rather than a niche compliance exercise.

For many organizations, addressing these challenges requires both internal commitment and external support. Working with a Managed Security Service Provider such as Directpath Global Technologies (DGT) can help organizations strengthen their approach without overburdening internal teams. DGT supports organizations through services including mobile threat defense, extended detection and response, vulnerability assessment and penetration testing, next-generation firewalls, SOC 2 readiness, vulnerability risk management, web application firewalls, virtual CISO support, and operational technology security. Its advanced artificial intelligence division also enables tailored approaches that improve visibility and coordination across complex vendor ecosystems.

As digitalization accelerates across the Philippine economy, third-party cyber risk is no longer a secondary concern. It is a frontline issue that directly affects operations, trust, and long-term stability. Organizations that invest now in mature, integrated risk management supported by the right expertise and technology will be far better positioned to withstand the growing wave of supply chain–driven cyber threats. Source: Business World