Cybersecurity and Data Risk Tops LRMI’s Latest Supply Chain Report

Cybersecurity and Data Risks Dominate Digital Supply Chain Concerns

In the ever-evolving landscape of digital supply chains, cybersecurity and data risks have emerged as the most pressing concerns, according to the latest insights from the Lehigh Risk Management Index (LRMI). This reflects a heightened awareness of the vulnerabilities within digital infrastructures.

LRMI co-founder Zacharia notes that while supplier and economic risks have seen a decline, indicating a stabilization of sorts in macroeconomic and supplier dynamics, transportation disruption risk has surged. “Transportation Disruption Risk rose sharply, signaling renewed concerns about logistics bottlenecks, shipping route disruptions, and freight cost volatility,” Zacharia said.

Established in 2020 by the Center for Supply Chain Research at Lehigh and the Council of Supply Chain Management Professionals, the LRMI provides a comprehensive ranking of ten categories of supply chain risks. This tool aids executives in foreseeing and mitigating future challenges, particularly for the upcoming quarter. The categories assessed include cybersecurity and data, customer, economic, environmental, government intervention, operational, quality, supplier, technological, and transportation disruption.

One of the LRMI’s standout features lies in its ability to juxtapose these risk categories directly, offering a holistic view rather than isolated scores. For the second quarter of 2026, key risks identified are government intervention, cybersecurity and data, economics, and supplier risks.

Adding depth to its analytical reports, the LRMI includes firsthand accounts from supply chain managers, providing a qualitative perspective. Recent feedback highlights concerns over data sourcing vulnerabilities, the persistent threat of cyberattacks amidst the Iran conflict, and the anticipated rise in sourcing disruption risks due to geopolitical tensions and new supplier integrations.

• The LLMs depend on good data; the sourcing of data could be compromised.
• As you see playing out in the war with Iran, currently cyberattacks are an absolute threat and expanding by the hour.
• Sourcing disruption risk is expected to rise in the near term due to several converging factors: the ongoing uncertainty surrounding tariffs, the war in the Middle East, and the onboarding of many new suppliers.
• Our electric and water bids are up this quarter; we expect to see an increase in the cost of our electricity bids in Q2.
• With over 100 diesel and propane school buses on the road we are extremely exposed.

The LRMI publishes its findings quarterly, with reports available every March, June, September, and December. Tap here to access the latest report and learn how to participate in the upcoming survey.