Managing Open Source Software Risks in Regulated Industries

This white paper discusses the complexities and risks associated with the software supply chain, particularly focusing on Open Source Software (OSS) management in regulated industries such as finance, medical devices, and energy. It outlines the increasing reliance on OSS, which now constitutes a significant portion of proprietary applications, and the corresponding rise in security vulnerabilities. The document details four key trends affecting OSS, including the growing popularity of OSS, rising security exploits, increased regulatory requirements, and the challenges posed by a disconnected supply chain. It emphasizes the importance of a Software Bill of Materials (SBOM) as a critical tool for managing security and legal risks associated with OSS. The paper also presents best practices for creating SBOMs using Software Composition Analysis (SCA) tools, which help organizations identify vulnerabilities and ensure compliance with licensing obligations. By adopting these practices, organizations can enhance their software supply chain security and mitigate risks effectively.