How to strengthen cyber resilience through supply chain contracts
Guest blog by Jocelyn S Paulley, Partner, Co-leader of Retail & Leisure Sector (UK) and Co-leader of Data Protection and Cyber Security sector (UK)
In today’s hyperconnected world, cyber risk is no longer a peripheral concern - it’s a central business issue for the vast majority of businesses. In 2024, 75% of software supply chains experienced attacks[1], with global economic losses projected to soar to USD $138 billion (GBP £108 billion) by 2031.[2] As cyber threats become more sophisticated and supply chain vulnerabilities grow, legal teams are playing a critical role in shaping organisational resilience.
Adapting supply chain contracts to reflect the growing complexity and severity of cyber threats is one area where legal teams can protect their organisation.
This article highlights practical ways to strengthen cyber clauses beyond simple policy compliance and explores what contract drafters should prioritise: governance, transparency, incident response and technical measures.
Cyber resilience should be considered from the outset, not added in once terms are agreed. Involving legal teams early in the procurement process gives organisations the opportunity to shape expectations before contracts are finalised, making sure protections are practical, clear and aligned with how suppliers operate. This early engagement helps avoid the need to retrofit clauses and supports more joined-up risk management.
Before the contract: lay the groundwork early
Effective resilience planning should begin before the contract is signed. Legal teams should work with stakeholders to assess:
- Which laws and frameworks apply, depending on the sector and service.
- Where the solution sits within the business ecosystem.
- How connected it is to other systems - connectivity often poses greater risk than criticality.
- The supplier’s awareness of its own supply chain, including indirect dependencies.
- Who owns responsibility for different layers of technology, especially in cloud contexts.
Legal teams need to help their organisation understand and define its risk appetite. That will influence governance structures implemented within a company, resources for purchase of cyber risk management tools and products, recruitment of personnel with the right skill set, sophistication of contract templates, and the level of cyber-specific scrutiny applied to new suppliers.
It's much more than just the security policy
Traditional contract language requires a supplier to comply with their, or the client's, security policy. However, that is rarely enough. A policy contains specific technical controls that are applied and are fixed and non-negotiable in any kind of one-to-many service provision. They address only one aspect of cyber security. Clauses need to go much further to cover cyber risk management, across governance, processes, reporting and standards.
Focus areas for cyber clauses
- Audit clauses: Include rights to request information, conduct security reviews, remediate any gaps found. Cyber questionnaires can support lighter-touch due diligence for smaller suppliers.
- Subcontracting and supply chain mapping: Require full supply chain transparency and ensure key obligations, such as notification duties and policy alignment, are passed through to subcontractors.
- Governance structures: Include mechanisms for regular engagement. Formalise reporting cycles, name contact points, and ensure contracts create space for discussing threat trends and joint improvement areas.
- Virus protection and alert management: Move away from references to “good industry practice” to make use of codes of practice. Be clear on who should respond to virus notifications.
- Testing and software updates: Mandate timely deployment of updates and security patches. Prohibit use of unsupported software. Both issues have contributed to enforcement action by the Information Commissioner’s Office (ICO) in recent years.
- Incident response and near miss reporting: Set firm expectations for how suppliers should detect, respond to and report security incidents. Include clear timelines and broaden definitions to cover near misses, reflecting the growing focus on proactive detection.
- Access controls and core principles: Mandate access control principles such as the rule of least privilege and segregation of duties.
- Refer to frameworks: Clarify which standards the supplier is expected to meet or certify to e.g. ISO 27001, Cyber Essentials, Cyber Essentials Plus, National Institute of Standards and Technology (NIST) frameworks, or the Cyber Assessment Framework. Where organisations work from different frameworks, map the frameworks onto each other to ensure that both customer and supplier have a common understanding.
- Personnel and vetting: Define minimum security standards for supplier personnel e.g. Baseline Personnel Security Standard (BPSS), which is mandatory for many government contracts. Train all personnel regularly. Be alert to modern techniques to recruit informants.
Well-drafted cyber clauses do more than manage risk - they help set the tone for how organisations and suppliers collaborate. When expectations around incident response, accountability and governance are clearly defined and practical to implement, suppliers are more likely to engage constructively. This clarity supports stronger relationships and helps build trust over time.
How legal teams can strengthen cyber risk management through contracts
To strengthen cyber resilience through contracts, businesses should:
- Map their supply chain all the way down the chain and assess third-party risks.
- Decide where legal governance stops and operational accountability starts.
- Align contract terms to the risk level of each asset and supplier relationship.
- Draft clauses with the full lifecycle in mind, including monitoring and offboarding.
- Treat suppliers as strategic partners in cyber defence, not just vendors.
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Meet the team
Jill Broom
Head of Cyber Resilience, techUK
Jill leads the techUK Cyber Resilience programme, having originally joined techUK in October 2020 as a Programme Manager for the Cyber and Central Government programmes. She is responsible for managing techUK's work across the cyber security ecosystem, bringing industry together with key stakeholders across the public and private sectors. Jill also provides the industry secretariat for the Cyber Growth Partnership, the industry and government conduit for supporting the growth of the sector. A key focus of her work is to strengthen the public–private partnership across cyber to support further development of UK cyber security and resilience policy.
Before joining techUK, Jill worked as a Senior Caseworker for an MP, advocating for local communities, businesses and individuals, so she is particularly committed to techUK’s vision of harnessing the power of technology to improve people’s lives. Jill is also an experienced editorial professional and has delivered copyediting and writing services for public-body and SME clients as well as publishers.
- Email:
- [email protected]
- Website:
- www.techuk.org/
- LinkedIn:
- https://www.linkedin.com/in/jill-broom-19aa824
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Annie Collings
Programme Manager, Cyber Resilience, techUK
Annie is the Programme Manager for Cyber Resilience at techUK. She first joined as the Programme Manager for Cyber Security and Central Government in September 2023.
In her role, Annie supports the Cyber Security SME Forum, engaging regularly with key government and industry stakeholders to advance the growth and development of SMEs in the cyber sector. Annie also coordinates events, engages with policy makers and represents techUK at a number of cyber security events.
Before joining techUK, Annie was an Account Manager at a specialist healthcare agency, where she provided public affairs support to a wide range of medical technology clients. She also gained experience as an intern in both an MP’s constituency office and with the Association of Independent Professionals and the Self-Employed. Annie holds a degree in International Relations from Nottingham Trent University.
- Email:
- [email protected]
- Twitter:
- anniecollings24
- LinkedIn:
- https://www.linkedin.com/in/annie-collings-270150158/
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Olivia Staples
Junior Programme Manager - Cyber Resilience, techUK
Olivia Staples joined techUK in May 2025 as a Junior Programme Manager in the Cyber Resilience team.
She supports the programs mission to promote cyber resilience by engaging key commercial and government stakeholders to shape the cyber resilience policy towards increased security and industry growth. Olivia assists in member engagement, event facilitation and communications support.
Before joining techUK, Olivia gained experience in research, advocacy, and strategic communications across several international organisations. At the Munich Security Conference, she supported stakeholder engagement and contributed to strategic communications. She also worked closely with local and national government stakeholders in Spain and Italy, where she was involved in policy monitoring and advocacy for both public and private sector clients.
Olivia holds an MSc in Political Science (Comparative Politics and Conflict Studies) from the London School of Economics (LSE) and a BA in Spanish and Latin American Studies from University College London (UCL).
Outside of tech, Olivia enjoys volunteering with local charities and learning Norwegian.
- Email:
- [email protected]
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Authors
Jocelyn S Paulley
Partner, Co-leader of Retail & Leisure Sector (UK), and Co-leader of Data Protection and Cyber Security sector (UK)
