Examining How Targeted Cyber Attacks on Critical Supply Chain Networks Can Lead to Economic Collapse and Civil Unrest
Joseph Squillace, Justice Cappella · 2024
Utilizing Event Study Methodology, this research aimed to better understand the financial implications of critical supply chain disruptions caused by targeted cyber-attacks, and to signify the importance of proactive corporate investments in supply chain security defense. Supply chain attacks have the potential to disrupt critical supply networks, operations, compromise product integrity, and negatively impact critical infrastructure functions. Moreover, supply chain attacks can further cascade into supply shortages, outages, or in some cases, more breaches. Despite the potentially catastrophic consequences of supply chain disruptions, these attacks continue to occur with increasing frequency due to a lack of embedded cyber security controls. Financial Analysis was conducted on supply chain security breach events and attacks from January 1, 2017 - December 31st, 2023 using Event Study analysis to highlight the economic importance for proactive investment in defensive strategies to protect critical supply chains. Moreover, we present the financial impact to corporations using both Parametric and Non-Parametric statistical testing as a result of not investing in the defensive tools needed to protect and secure critical supply chains. Results from this study contribute to the extant body of literature across multiple disciplines, including Cybersecurity, Supply Chain, Critical Infrastructure, and Event Study Methodology.