August 2025 Volume 7

OPERATIONS & MANAGEMENT

YOU’RE GONNA NEED A BIGGER BOAT: PREPARING FOR EVOLVING CYBERTHREATS By Jim Kerr

D id you see Jaws this summer? Maybe you remember seeing it for the first time back in 1975. One of the more iconic lines, “You’re gonna need a bigger boat,” was ad-libbed by star Roy Scheider (whose character is in shock after a close encounter with the threatening shark). The phrase has come to mean underestimating the size and scope of a risk AND lacking adequate resources to deal with it. Almost daily, news reports show the damage cyberattacks cause. Threats are constantly evolving, so the cyber defenses you had in place even a year ago may not be as relevant today. Threats to Metal Forging Manufacturers In addition to threats every business faces from ransomware, phishing attempts, and social engineering, consider threats like these: • Legacy Systems and Outdated Industrial Controls: Your business may rely on outdated Operational Technology (OT) systems and Industrial Control Systems (ICS) including PLCs or SCADA that were not designed with modern cybersecurity in mind. These systems can present vulnerabilities that are ripe for exploitation. Attackers can manipulate or disrupt critical manufacturing systems and machinery, potentially damaging equipment, creating safety hazards, or completely halting production. • Unpatched Microsoft Windows: Many manufacturers run outdated Windows. If your business systems (email, ERP) and production networks are on the same network, one phishing email can shut down your business. • Vulnerable Supply Chain: Cybercriminals can exploit vulnerabilities in third-party vendors or suppliers to gain access to your network. A breach at one supplier can have a cascading effect. While you don’t want to be a victim of a vulnerability caused by one of your vendors, you also don’t want to be the source of a vulnerability that spreads to your customers. • Intellectual Property (IP) Theft: Attackers may target sensitive data, including valuable designs, patents and processes. If you serve aerospace, automotive, or defense clients, your forging specs are a target for state-sponsored cyber espionage or competitors. • Internet of Things (IoT) Vulnerabilities: The increased use of connected devices, while enhancing efficiency, expands the attack surface, requiring robust security measures. For example, connected devices on the factory floor can be exploited if they have weak passwords or firmware flaws, potentially allowing attackers to spread malware or gain unauthorized access.

• Insider Threats: Employees or contractors can intentionally or unintentionally steal and release sensitive data or otherwise disrupt operations. Reduce Technical Debt I’ve talked about “technical debt” before in this space, but it’s worth revisiting. Technical debt occurs when a business delays IT upgrades or chooses solutions that are quicker or cheaper than required to effectively support its operations. This debt can accumulate over time, resulting in increased cybersecurity risks and significant, unplanned expenses to replace unsupported or obsolete software and hardware. This is especially important when you’re dealing with legacy OT. Trying to update a complex legacy OT system can be daunting. One update can lead to another, then another, then another, potentially straining your operations and your budget. Take a staged approach to upgrading technology. Gradually reduce your risk and improve your cyber defense with each step instead of crossing your fingers by leaving legacy systems alone because they “work”, even though they may be inadequately secure. Take a Multi-Layered Approach A layered approach is best when you’re working to protect your organization against cyberattacks and their effects. If it isn’t already, make cyber defense a priority and take the process one step at a time. Consider these questions: • The vast majority of cyberattacks are caused by human error. Does every person in your company understand their personal role in defending against cyber threats? • This can be anything from knowing how to handle confidential information, to not clicking on links in emails from unknown people, to how to report a suspected security incident. • Do you have a thorough understanding of your current IT environment? • This includes equipment inventories with aging, security tools already in place (anti-virus/anti-malware, allowlisting, password managers, Endpoint Detection and Response (EDR) for real-time threat detection, Managed Detection and Response (MDR) for rapid response, etc. • Do you understand the risks that are specific to your environment, including technology gaps that need to be addressed? • This can include legacy systems that need to be updated or adding ongoing training and simulated phishing testing for staff.

FIA MAGAZINE | AUGUST 2025 34