Case in point: One manufacturer that adopted AI-powered robotics to streamline tooling operations experienced a malware attack that made its machines inoperable. Without a manual override or backup systems, the entire production line sat idle for five days, resulting in a seven-figure business loss.
As more manufacturers embrace smart machinery, data integration, and digital workflows, a new class of challenges has come up:
- Cyber threats: Connected equipment can open the door for hackers—another key risk featured in the Manufacturing Risk Report. Ransomware that locks a network can also shut down machines, sensors, and inspection systems.
- Delayed ROI: Automation investments often need retrofits, retraining, and some downtime before you see results. If a rollout is rocky, it can affect output and cash flow.
- Business interruption exposure: Traditional property coverage may not account for the time it takes to replace advanced machinery or recover software. A single system failure could lead to weeks of lost production.
- Workforce complexity: Automation doesn’t eliminate jobs. Manufacturers need employees with technical skills to maintain and optimize these systems. As technology changes, the need for retraining and upskilling happens more often.
Manage the risk without slowing down innovation.
Technology is a changing ecosystem that needs active management. As operations become faster and more complex, the margin for error gets smaller. Being resilient means predicting where and how disruptions might happen and setting up systems that can absorb the shock without derailing progress.
Here are five ways manufacturers can improve their risk management while staying focused on innovation:
- Reevaluate your business interruption coverage. Modern downtime isn’t just about fire or flood. A failed firmware update or cyberattack can shut down operations just as effectively, and your coverage should account for that. Make sure your policy considers real recovery timelines, like sourcing new machines or rewriting code.
- Invest in cyber resilience. Cyber hygiene is now a basic requirement. Insurers look for measures like multi-factor authentication, endpoint detection, and privileged access management. And don’t overlook the need for coordinated coverage across cyber and crime policies, as covered in the Manufacturing Risk Report.
- Build in redundancies. If your most important machine breaks down, what’s your backup plan? Think about manual overrides, spare parts inventory, and alternate workflows to keep production going during a disruption.
- Prepare your team. Today’s automated systems need operators who have both manufacturing experience and digital know-how. Upskilling your staff or hiring for hybrid roles will be key to long-term success.
- Let technology help manage the risk it creates. Use tools like Sentrisk™ to track vulnerabilities across suppliers, systems, and recovery timelines, so you can act before disruptions get worse.
A modern protection strategy for a modern infrastructure
When technology becomes the backbone of your operations, its weaknesses can spread quickly across every part of the business. A single point of failure can now affect everything from production uptime and workforce performance to customer delivery timelines.
As systems become more connected and supply chains more interdependent, even minor disruptions can become costly and complex. Recovery now involves restoring software, rebuilding trust, and regaining operational stability across different areas.
Learn more about these interconnections and how to manage them in our exclusive report.
Download the Report.
