1. Third-party software is a security time bomb
The modern software industry runs on third-party components. Companies integrate open-source libraries, APIs, and vendor solutions to accelerate development and reduce costs. But when you rely on someone else’s code, you’re also inheriting their risks—often without knowing it.
The reality is that most applications today are built on layers of third-party components, and those components come with vulnerabilities. Attackers know this. The SolarWinds and MOVEit breaches proved how a single compromised dependency can trigger catastrophic consequences for thousands of organizations. These issues are shaking entire industries, disrupting operations, and putting sensitive customer data at risk.
Adam Ennamli, Chief Risk and Security Officer at General Bank of Canada, puts it bluntly: “Virtually every application nowadays is a complex patchwork of third-party components.” The speed of software development is critical, but so is control. If you don’t know what’s inside your software, you don’t know where the next breach is coming from.
2. Lack of visibility creates massive security blind spots
Most companies have no idea what’s running in their software environment. It’s not enough to scan for vulnerabilities. You need to see the full picture—where your third-party components come from, how they’re maintained, and when they’re updated. Without this, you’re operating in the dark.
The challenge grows as businesses expand. Software supply chains are constantly changing, with new dependencies added daily. This makes it harder to track what data is being accessed, who has control over it, and where it’s going. Jeremy Ventura, Field CISO at Myriad360, points to key questions that every executive should be asking: “Who has access to my data? What type of data do I own? Where is my data being sent?” These are fundamental business concerns.
For decision-makers, the solution is clear: visibility must be a top priority. Without it, you’re gambling on security. Invest in tracking systems that give you real-time insights into your software dependencies. Make it a company-wide initiative.
3. Supply chain security is not just a security team problem
Software security isn’t only the responsibility of your IT department. If supply chain security isn’t treated as a business risk, you’re already behind. It needs to be built into every function—legal, development, procurement, product management. Every team that interacts with software vendors must be involved.
Many companies make the mistake of relying too much on vendor assessments. Just because a supplier says they’re secure doesn’t mean they are. Security needs verification. Jeremy Ventura emphasizes this risk: “Not one department should fully own the entire supply chain program… Trusting an assessment completely without verification can lead to major issues down the road.”
“Executives must lead this effort. Security must be embedded in every business decision. Without this shift in mindset, vulnerabilities will always slip through the cracks.”
4. Ignoring supply chain risks leads to major financial and reputational damage
Most companies don’t take software supply chain security seriously until it’s too late. A single breach can cost millions in regulatory fines, lost revenue, and reputational damage. Some companies never recover.
A real-world example: A healthcare organization recently suffered a data breach because one of its suppliers was attacked. The result? Lost patient data, compliance penalties, and legal consequences. The breach wasn’t even their fault—but they paid the price.
Executives who ignore supply chain risks are making a dangerous bet. If security isn’t built into vendor relationships from the start, you’re exposed. Customers don’t care whose fault a breach is. They care that their data is secure. If it isn’t, they walk away.
5. Best Practices: Automation, education, and a security-first culture
Companies that succeed in managing supply chain security do three things well: they automate, they educate, and they build a culture where security is everyone’s responsibility.
Automation is key. Tracking every software dependency manually is impossible. Businesses need tools that provide a Software Bill of Materials (SBOM)—a clear record of every third-party component in their software stack. With real-time monitoring, vulnerabilities can be caught before they become full-scale breaches.
Education is just as critical. Developers must be trained to recognize security risks. Adam Ennamli lays out a clear path for success: “Frequent communication between dev teams, security teams, and business leaders… more education and experimentation around concepts such as SBOMs… and a culture where developers feel empowered to raise concerns about suspicious packages.”
Security must become second nature to everyone in the organization, from engineers to executives. When security is woven into company culture, risks decrease, and resilience increases.
6. Security must be integrated into the development process
Most companies treat security as an afterthought. They build software first, then try to secure it later. That’s a losing strategy. Security needs to be embedded into the development process from day one.
Joseph Leung, CTO and Chief Product Officer at JAVLIN Invest, has seen firsthand how companies struggle with this: “We automate dependency tracking with tools such as OWASP Dependency-Check, but it cannot be relied on by itself.” His advice? Make security a core function of development, not an external process.
This means setting strict policies for vetting third-party libraries before they’re integrated. It means performing security audits as part of the development cycle, not just before deployment. And it means making security every engineer’s responsibility.
“Companies that integrate security into their development process gain a competitive advantage. Secure software builds trust, and trust builds stronger businesses.”
7. Cross-functional collaboration is the key to supply chain security
IT and development teams must work closely with legal, procurement, and executive leadership to ensure security is built into every stage of the supply chain.
Adam Martin, Director of IT and Operations at American Structurepoint, highlights the importance of this: “IT and development teams must actively scan and update systems, while legal and procurement should vet vendors’ security practices.” Without alignment across departments, security gaps will emerge.
Executives need to foster this collaboration. Security shouldn’t be seen as an obstacle—it should be a core part of the company’s business strategy. Companies that take this approach will be better protected, more resilient, and ultimately more successful.
Final thoughts
Security is either built in from the start or patched in after a disaster. The companies that take software supply chain security seriously build trust, protect their bottom line, and stay ahead of the competition. Those that don’t will learn the hard way.
Third-party dependencies are unavoidable, but blind trust is not a strategy. Visibility is everything. Every business leader should know what’s running in their environment, who maintains it, and how it’s updated. Security can’t be a checklist—it needs to be a shared responsibility across teams, embedded in the development process, and reinforced with automation and real-time monitoring.
The best organizations treat security as a competitive advantage. When security is part of company culture, innovation moves faster, customers stay loyal, and risks are managed before they become problems. That’s the future. Anything less is just waiting for an inevitable breach.
