In today’s hyperconnected economy, supply chains are no longer just operational backbones; they are strategic lifelines, shaping resilience, competitiveness, and innovation across industries. Yet for many UK organisations, these lifelines are becoming increasingly fragile, writes Robert Hannigan, Chairman of International Business at BlueVoyant.
The most recent iteration of our global supply chain defence research indicates that – despite pouring significant resources into third party risk management (TPRM) programs and embracing new technologies to shore up their supply chain defences – UK businesses continue to face a high rate of supply chain breaches. This paradox – where increased investment coincides with increased vulnerabilities – highlights an essential principle: being compliant is not synonymous with genuine resilience.
Nearly every UK firm we surveyed has felt the sting of third party incidents, with 98 per cent impacted by supply chain breaches. In fact, they continue to face many structural challenges including limited integration with enterprise risk frameworks, siloed collaboration, and insufficient executive engagement. The result is a widening gap between intent and impact, leaving businesses increasingly vulnerable at a time when their vendor ecosystems are expanding.
Investment–Impact Gap
While our research showed that nearly half of UK organisations have now established or optimised their TPRM programs, putting them broadly on par with other countries surveyed, the reality is sobering. Globally, the UK continues to lead in breach frequency, with almost a quarter of surveyed firms experiencing six to ten supply chain incidents in the past year alone. On average, organisations faced 4.1 breaches each, the highest rate across all the regions we surveyed.
This pattern makes clear that investments, however aggressive, are not translating into meaningful risk reduction. Instead, the complexity of vendor ecosystems and the relentless pace of cyber incidents are outstripping the progress being made.
The lessons from our research are unmistakable: maturity in program design and execution does not automatically equate to resilience in practice. UK organisations are advancing, but they remain caught in a cycle where compliance and spending dominate, while true risk reduction has fallen behind.
To break this cycle, leaders must reframe TPRM not as a regulatory checkbox but as a core operational priority – integrated into enterprise risk management frameworks, embedded in organisational culture, and measured by outcomes rather than inputs. Only then can investment begin to deliver the impact that businesses urgently need.
Structural challenges
Globally, the momentum behind TPRM programs is undeniable, with 95pc of surveyed firms anticipating budget growth. Yet in the UK, financial constraints remain a defining challenge. However, UK organisations anticipate vendor ecosystem growth of 11 per cent in the coming year. This trajectory amplifies the imperative to fortify such programs, as expanding ecosystems inevitably heighten exposure and complexity.
While cyber insurance continues to be the dominant driver shaping program design, the growing emphasis on risk reduction reflects a strategic evolution. Organisations need to recognise that compliance is no longer the finish line, with true organisational and supply chain resilience demanding measurable risk mitigation as the ultimate objective.
While progress is evident, structural barriers continue to impede transformation. UK respondents have highlighted entrenched resistance to change and limited stakeholder collaboration as critical inhibitors. At an operational level, the absence of seamless integration with enterprise risk and governance frameworks, coupled with challenges in continuous supplier risk monitoring, underscores the need for more mature capabilities.
Encouragingly, U.K. organisations demonstrate a stronger bias toward independent validation over vendor self-attestation (14pc versus 19pc globally), signalling a shift toward more rigorous oversight. Yet the persistence of execution gaps reveals that the next step lies not in intent, but in embedding assurance and risk reduction into the fabric of enterprise strategy.
Increased outsourcing
Our research found that the UK is setting the pace globally in outsourcing data analysis, with 43pc of surveyed firms embracing this model. Monitoring functions are also increasingly handled by third parties, rising to 36 per cent from 33pc in 2024. While outsourcing delivers scale and specialist expertise, the strategic question is whether organisations are converting this data into actionable intelligence that strengthens resilience and decision-making.
Vendor tiering practices further highlight the evolving landscape: nearly two-thirds (63pc) of surveyed UK firms tier by contract value, underscoring a strong financial lens. Yet 60pc also tier vendors by operational importance, signalling a shift toward continuity and resilience as critical priorities. Together, these suggest that the next competitive advantage will not come from outsourcing alone, but from how effectively firms integrate external insights into enterprise-wide risk and governance strategies.
Leadership engagement remains a critical weak point: only 16 per cent of surveyed U.K. firms brief senior executives monthly or more, the lowest rate out of all the countries we surveyed. With most relying on annual updates, boards risk being under-informed about fast-moving threats. Without sustained executive involvement, TPRM cannot secure the organisational commitment required to evolve the program.
