Steve Cobb, CISO, SecurityScorecardDecember 26, 20244 Min Read Tero Vesalainen via Alamy StockIn today's interconnected world, the software supply chain is a vast network of fragile connections that has become a prime target for cybercriminals. The complex nature of the software supply chain, with its numerous components and dependencies, makes it vulnerable to exploitation. Organizations rely on software from numerous vendors, each with its own security posture, which can expose them to risk if not properly managed.The Cybersecurity and Infrastructure Security Agency (CISA) recently published a comprehensive Secure by Demand Guide: How Software Customers Can Drive a Secure Technology Ecosystem to help organizations understand how to secure their software supply chains effectively. With both vendors and threat actors increasingly leveraging AI, this guide is a timely resource for organizations seeking to more effectively navigate their software vendor relationships.Importance of Securing the Software Supply ChainSupply chain attacks, such as the infamous Change Healthcare and CDK Global breaches, highlight the critical importance of securing the software supply chain. It represents a significant risk to every organization given that a single vulnerability can have a domino effect that compromises the entire chain. These attacks can have devastating consequences, including data breaches, operational disruptions, regulatory penalties, and irreparable reputational damage.Related:CISA's guide serves as an excellent foundation for organizations needing to implement a robust software supply chain security strategy. These best practices are particularly valuable for public companies required to report material cyberattacks to the SEC. The top three takeaways for organizations are:1. Embracing radical transparency: CISA urges vendors to embrace radical transparency, providing a comprehensive and open view of their security practices, vulnerabilities, methodologies, data, and guiding principles.2. Taking ownership of security outcomes: Vendors must be accountable for the security outcomes of their software. By having visibility into both their own security posture and that of their vendors, organizations can identify vulnerabilities and take corrective actions.3. Make security a team effort: Ensure that the organization's security objectives are clearly defined and communicated to all employees. Cybersecurity should not be treated as an individual responsibility but rather as a company-wide priority, just like other critical business functions.Mastering Vendor AssessmentsRelated:Recent research from SecurityScorecard found that 99% of Global 2000 companies have been directly connected to a supply chain breach. These incidents can be extremely costly, with remediation and management costs 17 times higher than first-party breaches. To mitigate these risks, organizations must prioritize thorough vendor assessments. Vendor assessments can be time-consuming, but they are just as important as ensuring your own company's security. Several key processes to consider include:Conducting regular vendor assessments: First and foremost, a vendor assessment doesn't work if you only do it once in a blue moon. Continuously assess the security postures of your vendors to ensure that they comply with industry security standards and that their software does not expose your organization to vulnerabilities. This includes conducting regular security audits, reviewing vendor security practices, and assessing their incident response capabilities.Demand secure-by-design products: Make "secure by design" a non-negotiable. Prioritize vendors who embed security into every phase of the product life cycle, ensuring it's a core consideration from development to deployment, not an afterthought.Implement strong vendor management policies: Develop a comprehensive vendor management policy that includes onboarding procedures, continuous monitoring, and guidelines for security expectations throughout the vendor relationship. This policy should outline the security requirements that vendors must meet and establish clear communication channels for reporting and addressing security issues.Related:Ensure limited access and privileges: Operate on a principle of least privilege with vendors. Grant them only the minimum access and permissions needed to fulfill their tasks. Overprovisioning access can widen your attack surface significantly. Implement robust access controls and conduct regular reviews to ensure only authorized personnel have access to sensitive systems and data.Monitor for vulnerabilities and weaknesses: Actively monitor for new vulnerabilities in software provided by your vendors. Utilize automated tools to detect vulnerabilities and respond swiftly to reduce exposure. Stay informed about emerging threats and industry best practices to ensure your organization is prepared to address new challenges.Securing the Future of the Supply ChainThe supply chain breaches at Change Healthcare and CDK Global demonstrate the devastating consequences of neglecting software supply chain security. These attacks can result in billions of dollars in losses, months of operational disruption, irreparable damage to reputation, legal ramifications, regulatory fines, and loss of customer trust. Moreover, recovery efforts, such as forensic investigations and system restorations, require substantial resources.Collaboration is important in any industry, but in today's age of increasing nation-state threat actors and even individual hackers in their parent's garage, collaboration and information sharing among cybersecurity professionals is vital. By aligning with Secure by Demand principles, utilizing continuous monitoring, and implementing a culture of transparency, organizations can strengthen their defenses and significantly reduce the risk of supply chain attacks.About the AuthorSteve CobbCISO, SecurityScorecardSteve Cobb is SecurityScorecards chief information security officer bringing more than 25 years of leadership consulting surrounding IT infrastructure, cybersecurity, incident response, and cyber threat intelligence Prior to SecurityScorecard, he was a senior security engineer with Verizon Managed Security and a senior escalation engineer with Microsoft.See more from Steve CobbNever Miss a Beat: Get a snapshot of the issues affecting the IT industry straight to your inbox.SIGN-UPYou May Also LikeWebinarsMore WebinarsReportsMore Reports