Insider Risk in the Defence Sector


The defence sector, vital to national security, is increasingly becoming a hotspot for insider risks. With a diverse array of entities, from large contractors to SMEs, and an intricate supply chain, the sector is an attractive target for both internal and external actors. Insider risks in the defence sector have resulted in significant information leaks, financial losses, reputational harm, and potentially jeopardised national security. This case study examines the challenges, impacts, and potential strategies to manage these risks effectively.

The Challenge: Insider Risk in the Defence Sector

The complexity and urgency of managing insider risks in the defence sector are further heightened by digital advancements and geopolitical tensions. The digitalisation of defence processes and the rise of cyber capabilities have expanded the scope of potential attacks. This digitisation provides an ideal environment for both cyber and traditional espionage efforts, making economic espionage by nation-states a substantial threat to the defence sector’s innovative advancements. Notably, the defence sector experiences an unsettling volume of ransomware attacks, with 32% of leading contractors vulnerable due to compromised credentials and poor internal practices.

Moreover, geopolitical tension fuels an increase in clandestine activities, and the defence sector, with its substantial ties to national security, becomes an attractive target. An escalation in interstate military competition often leads to desperate attempts at securing cost-effective research and development procurement. This situation exposes the sector to higher risks of espionage and sabotage. It is worth mentioning that smaller businesses and contractors in the sector are also becoming increasingly vulnerable, given their limited resources for creating robust defence mechanisms. As such, tackling insider risks in the defence sector requires addressing these challenges with tailored strategies and solutions.

NATO Airplanes

The Impact of Insider Risk in the Defence Sector

The impact of insider risks within the defence sector carries a particularly significant weight due to the potential implications reaching far beyond immediate financial damages. For instance, insider risks can lead to considerable compromises in national security and even bring about geopolitical fallout. The leaking of sensitive military data or state secrets can critically undermine a nation’s defence strategies or diplomatic standing. This reality was starkly demonstrated in 2021 when an Italian Navy captain was found guilty of selling classified military documents, including vital NATO documents, to a foreign entity.

The defence sector’s supply chain, which is both complex and intricate, can be especially susceptible to insider attacks. Disruption within the chain due to insider actions can have wide-reaching impacts on the operations and innovation potential of defence systems. Similarly, any insider-led breaches or leaks can significantly erode public trust and tarnish the reputation of defence organisations that handle highly sensitive data and operate under intense public scrutiny. For example, Daniel Everette Hale’s unauthorised disclosure of classified information on U.S. drone attack capabilities not only caused substantial reputational damage to the involved parties but also raised severe national security concerns.

Further extending the range of impacts are the operational disruptions caused by insider attacks. They can lead to system downtime, loss of productivity, and even compromise regular operations. In some cases, the loss of critical data can result in significant delays in research and development projects, leading to missed opportunities and competitive disadvantages. Ultimately, these scenarios underpin the urgent need for a robust and effective strategy for managing insider risks within the defence sector.

Insider Risk in the Defence Sector Statistic

The Solution: Signpost Six

Addressing insider risk requires a comprehensive, tailored approach. Signpost Six offers specialised insider risk management services and insider risk awareness trainings designed to assist defence entities in navigating this complex landscape.

Our services are designed to identify and mitigate existing risks, but also to foster a resilient organisational culture that minimises future insider threats. While we can’t divulge all our strategies here, we assure you that our approach is holistic, data-driven, and customised to each organisation’s unique needs.

Insider Risk In the Defence Sector - Warship


Insider risk in the defence  sector is significant and escalating. However, with the correct strategies and expert guidance, organisations can transform this challenge into an opportunity for improvement. Signpost Six stands prepared to partner with defence entities in this critical mission, providing the tools and expertise required to manage insider risks effectively.

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Whether you want to start your own Insider Risk Programme or build awareness amongst your employees. Get in touch with us to today!

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