Issue 009: The Mangrove Newsletter
News & Expert Views, Reports, Insights, Thoughts, and Perspectives on Global Resilience and Business Continuity.
Welcome to Issue 009 of the Mangrove Newsletter! We hope you enjoy reading this as much as we enjoyed putting it together for you.
1. Resilience Updates
Ever wonder what a resilience expert reads. Well wonder no more, this is what we are reading on a monthly basis.
1.1 In an increasingly unpredictable world, strategic planning is vital for enhancing business resilience. This research paper emphasises how startups can proactively identify potential risks and develop comprehensive contingency plans and navigate challenges effectively. By fostering a culture of adaptability and continuous improvement, startups can not only prepare for disruptions but also leverage them as opportunities for growth. These insights are essential for leaders aiming to build resilient companies that thrive amidst uncertainty. Continue reading!
1.2 As we gear up for our new cohort, the team has been reviewing the outcomes of the Whitespace Pilot Program. A 3-stage initiative was completed, helping startups from the UK and Africa build operational resilience. Participants learned how to build a digital replica ("digital twin") of their businesses, highlighting key components and vulnerabilities. This process provided a clearer picture of their operations. Participants then learned how to leverage data from the digital twin to uncover hidden patterns and implement data-driven strategies. Outcomes of the program included; comprehension of operational interconnectedness, improved decision-making, and increased resilience maturity. Continue reading!
1.3 A recent ransomware attack on Blue Yonder, a critical supply chain management software provider, has exposed the vulnerability of major corporations to third-party risks. Starbucks, a major client of Blue Yonder, was forced to revert to manual processes for employee scheduling and payroll, highlighting the significant operational disruption that can arise from such attacks. This incident serves as a stark reminder of the importance of robust third-party risk management and operational resilience. As cyber threats continue to evolve, startups and investors must prioritise these areas to safeguard their operations and protect their brand reputation. Continue reading!
1.4 The recent global disruptions have underscored the critical need for businesses to develop resilient supply chains. This article discusses actionable steps companies can take to identify vulnerabilities within their supply chains and implement robust contingency plans. By leveraging technology for enhanced transparency and building strong relationships with suppliers, companies can mitigate risks and ensure operational stability even in times of crisis. These strategies are vital for maintaining a competitive edge in an unpredictable market. Continue reading!
2. Resilience Failures
Last month, we explored the importance of cyber resilience. This month, we shift our focus to another critical aspect of operational resilience: third-party risk.
As scale-ups grow, they often rely on strategic partnerships. However, these partnerships can introduce significant risks if not managed effectively. Understanding and mitigating third-party risk is essential to ensure the continued success of your business and build resilience.
Why is third-party risk so important?
Interconnectedness: Modern businesses rely on a complex network of suppliers, vendors, and partners. A failure in any part of this network can have cascading effects.
Hidden Vulnerabilities: Third parties may have weaker security practices or be targets of cyberattacks themselves, exposing your business to risk. This is why it is important to have good quality vetting before and throughout the service contract.
Due-Diligence: Many startups and investors think risk and accountability can be outsourced. The reality is your customers do not understand the complexities of your supply chain. Therefore, any risk or disruption to it, only reflects badly on your companies reputation.
Regulatory Compliance: Many industries have strict regulations governing third-party risk management. Failure to comply can result in hefty fines and reputational damage.
How can you mitigate third-party risk?
Due Diligence: By investing time in thorough vetting before entering service agreements, you can effectively determine the suitability and riskiness of the relationship. This can include understanding their policies and procedures around their security practices, incident response plans, business continuity strategies, financial health checks, etc. Regular reviews, at least annually, are essential to maintain oversight and ensure ongoing compliance.
Service Agreements: To effectively mitigate risks associated with third-party providers, it's crucial to have robust service agreements in place. These agreements should contain:
Clear Service Level Agreements (SLAs): Explicitly define performance metrics, response times, and uptime guarantees.
Robust Security Clauses: Outline specific security requirements, data protection obligations, and incident response procedures.
Penalties and Indemnification: Clearly state the consequences for non-compliance, including financial penalties and indemnification clauses to protect your business.
Regular Review and Updates: Periodically review and update your service agreements to reflect evolving risks and business needs.
Continuous Monitoring: Regularly monitor the performance and security posture of your third-party providers.
Contractual Safeguards: Ensure your contracts with third-party providers include strong security and compliance provisions.
Incident Response Planning: Develop a comprehensive incident response plan that outlines how you will respond to a third-party security breach.
Insurance: Consider purchasing cyber insurance to protect your business against financial losses resulting from third-party incidents.
By prioritising third-party risk management, startups and investors can safeguard their operations, protect their brand reputation, and build a more resilient business. The same way we don’t skip leg day - we never skip third part due diligence.
3. What is Whitespace?
We are getting ready to launch our second pilot program. We already have a few startups in the cohort but are looking to fill a few more spots. Could this be you?
Whitespace is our innovative approach to unlocking a businesses full potential with resilience education.
The Whitespace Pilot Program: Join the Journey
The pilot program is a three-stage journey, kicking off in Jan 25. Here's what you can expect:
Stage 1: Onboarding to Mangrove Foundation. We'll work with you to build your company's digital twin.
Stage 2: Includes Mangrove Analytics. We'll enhance your digital twin with powerful analytics and generate even deeper insights.
Stage 3: Get ready for the Mangrove + (Co-Pilot). This stage leverages the insights from the digital twin and analytics to empower the implementation of necessary changes and business optimisation.
Are you ready to build a more resilient startup? We are!
Applications for the Whitespace pilot program are now active. To apply, please submit a form to register your interest. If selected, we will share the next steps.Â
3. Work with Us
Global business, SMB, or a Startup? We understand that technology is essential for modern businesses, and we've built replicable processes for businesses that guarantee long-term scalability and sustainability.
Let’s work with you to build better and scale faster. Schedule a Demo below with us. We can’t wait to connect.
