Global Regulatory Mandates: Igniting the Transformation of Software Supply Chain Security

Introduction: In an era where cyber threats are becoming increasingly common, securing Software Supply Chain is more a necessity than a preference. Regulatory mandates worldwide have brought about substantial shifts in the way organizations approach the assessment and management of Software Supply Chain Security (SSCS) risks. These regulations have proved to be instrumental in enforcing stricter security measures and creating a proactive culture of cybersecurity in the software industry.

?Transformation brought by the Regulatory Mandates: The management of software supply chain security (SSCS) risks has been greatly impacted by regulatory mandates worldwide. These mandates have prompted a significant transformation in the risk management practices of organizations. In response, regulatory requirements have been introduced globally to guide software consumers and publishers in assessing, mitigating, and monitoring risks associated with SSCS security. Some examples of such regulations are:

1) Executive Order (EO) 14028: Executive Order (EO) 14028 aimed at enhancing the nation's cybersecurity and the security of its software supply chain. One of its key aspects is its emphasis on improving the security of the software supply chain, notably through a self-attestation requirement for software suppliers.

The EO requires federal agencies to adopt a "zero-trust architecture" security model that assumes all hardware and software within the agency's network is potentially compromised. Additionally, the EO establishes a Federal Government-wide cybersecurity incident response board to coordinate response to cyber incidents.

The EO mandates that federal agencies working with suppliers of software products and technologies adopt and implement measures for the security of the software supply chain. The EO requires software suppliers to attest to adhering to best practices described in forthcoming guidance documents issued by the National Institute of Standards and Technology (NIST). However, it also mentions the self-attestation be corroborated by an independent third-party auditor.

There is also an inclination to establish labelling standards for software products, including a software bill of materials (SBOM), to facilitate visibility and managing vulnerabilities of third-party components. The labelling scheme would not only enable consumers to take informed decisions but also create a market pull for inherently secure software and promote transparency and systemic security.

2) The DHS Risk Management Act 2021: The Department of Homeland Security (DHS) Risk Management Act aims to improve the security and resilience of critical infrastructure in the United States. One of the key aspects of the Risk Management Act is its focus on improving the security of the software supply chain.

?The Risk Management Act requires the Secretary of Homeland Security to develop a comprehensive risk management program that includes requirements for the security of the software supply chain. Specifically, the legislation mandates that the program identifies, assesses, and mitigates risks associated with the software supply chain of critical infrastructure systems.

?The Act also mandates that organizations adopt supply chain risk management best practices, including secure software development practices, secure coding practices, regular vulnerability management, and the use of Software Bill of Materials (SBOM).

Furthermore, the Act encourages organizations to enhance their supply chain risk management through increased collaboration, information sharing, and coordination with other stakeholders, including vendors and relevant government agencies.

3) The Food and Drug Administration (FDA): The FDA has issued guidance documents aimed at enhancing the security of the hardware and software supply chains in the medical device industry. It requires medical device manufacturers to establish and maintain a comprehensive security program that includes requirements for the security of both hardware and software supply chains. Specifically, the guidance documents mandate that medical device manufacturers identify and assess the potential cybersecurity risks associated with their devices, including those related to the supply chain.

In addition, the FDA guidance documents encourage medical device manufacturers to implement secure design practices and robust vulnerability management programs to ensure the security and resilience of their devices, including the hardware and software components. The guidance documents also encourage manufacturers to establish supply chain risk management programs that identify, assess, and mitigate risks associated with the supply chain.?

The guidelines further recommend that manufacturers establish supplier agreements with their vendors and third-party suppliers that require the vendors to comply with specific cybersecurity requirements related to the security of hardware and software components.

4) Cyber Resiliency Act: The CRA requires the Secretary of Homeland Security to develop and implement a strategy for improving the security of the software supply chain for critical infrastructure systems and developing a set of guidelines, best practices, and methodologies for securing the software supply chain. The legislation also mandates that efforts are made to improve the supply chain at every stage, from the initial design to post-deployment maintenance and updates.

Specifically, the CRA requires the implementation of secure software development practices, including secure coding, security testing, and vulnerability scanning. The CRA also mandates that organizations participate in information sharing programs to help identify and mitigate supply chain risks, particularly through vulnerability discovery and analysis.

In addition to these requirements, the CRA also establishes the Software Supply Chain Security Research and Development Center (SSC-SDRC), which is tasked with developing advanced technologies and tools for securing the software supply chain.

The SSC-SDRC's work includes developing new technologies for identifying vulnerabilities in software, as well as researching new methods for securing software throughout its lifecycle. It is also responsible for identifying best practices and guidelines for secure software development and supply chain management.

5) NIS 2 Directive: The NIS2 (Network and Information Systems) Directive aims to improve the cybersecurity of networks and information systems across the European Union. One of the key aspects of the NIS2 directive is its emphasis on improving the security of the software supply chain.

The NIS2 directive requires companies that operate essential services, such as energy, healthcare, finance, and transportation, to take into account the security of their supply chains. This includes identifying and assessing the risks posed by their suppliers and taking appropriate measures to mitigate those risks.

The directive also requires digital service providers, such as cloud computing providers, to ensure that they have appropriate security measures in place to protect the software and hardware components that they supply to their customers.

In addition, the NIS2 directive mandates that all so-called "trust service providers," such as certificate authorities, take steps to ensure the security and integrity of their supply chains. This includes using secure coding practices, implementing effective vulnerability management programs, and conducting regular security assessments and testing.

6) Digital Operational Resilience Act (DORA): The Digital Operational Resilience Act (DORA) is a proposed legislation that aims to increase the resilience of the European Union's financial sector. One of the key aspects of the DORA is its focus on improving the security of the software supply chain.

The DORA would require financial market participants, including banks, insurance companies, and trading venues, to identify and assess the operational risks associated with their critical ICT systems. This includes taking into account the security of the software supply chain and the potential risks posed by third-party software and hardware components.

Furthermore, the DORA mandates that these market participants establish a sound ICT risk management framework that includes security validation and testing of ICT systems throughout their lifecycle. This framework should also ensure that a minimum level of resilience is maintained by critical members of the supply chain.?

The DORA also calls for the use of secure coding practices in the development of software components, as well as the regular assessment of the security of third-party software components. It also mandates the use of Software Bill of Materials (SBOM) in their processes.

7) The Reserve Bank of India (RBI): The RBI has issued guidelines aimed at strengthening the cybersecurity and technology infrastructure of banks in India, including the security of the software supply chain.

?The RBI guidelines require banks to establish a comprehensive cybersecurity framework, which includes requirements for the security of the software supply chain. Specifically, the guidelines mandate that banks conduct regular audits to ensure compliance with the framework and that they take steps to enhance the resilience of their ICT systems.

?In addition, the RBI guidelines encourage banks to implement secure coding practices, vulnerability management, and other security measures throughout the software development process to ensure the security and resilience of the software supply chain.

The guidelines also mandate that banks establish an information sharing mechanism for cybersecurity incidents related to the software supply chain. This includes establishing relationships with relevant government agencies and other industry participants to facilitate information sharing and collaboration.

Furthermore, the guidelines require that banks conduct periodic security assessments of third-party vendors that provide software components or technology services, including software and hardware used in critical ICT systems.

8) The Securities and Exchange Board of India (SEBI): SEBI is a regulatory body in India that oversees the securities market in the country. The SEBI has issued guidelines aimed at strengthening cybersecurity and related technology infrastructure of market infrastructure institutions, including the security of the software supply chain.?

The SEBI guidelines require market infrastructure institutions to establish a comprehensive cybersecurity framework that includes requirements for the security of the software supply chain. Specifically, the guidelines require market infrastructure institutions to conduct regular audits to ensure compliance with the framework and to take steps to enhance the resilience of their ICT systems.

The SEBI guidelines also require market infrastructure institutions to establish an information sharing mechanism for cybersecurity incidents related to the software supply chain. This includes establishing relationships with relevant government agencies and other industry participants to facilitate information sharing and collaboration.

Furthermore, the SEBI guidelines encourage market infrastructure institutions to implement secure coding practices, vulnerability management, and other security measures throughout the software development process to ensure the security and resilience of the software supply chain.

Expectations from Software Publishers and Consumers: Compliance with regulatory requirements pertaining to software supply chain security (SSCS) is an instrumental shift in the cybersecurity landscape, and both software publishers and consumers play a critical role in meeting these requirements. Software publishers are expected to prioritize the integration of secure software development principles and conduct routine vulnerability assessments to ensure the traceability and security of their software. They must also provide regular software updates and patches, a software bill of materials, and comply with the regulatory requirements as they pertain to SSCS security.

On the other hand, software consumers must exercise caution and a risk-based approach to software usage, validating third-party software sources, keeping up with software updates and patches, and reporting any suspicious activities. They are also expected to assess the software products before and after purchasing and use them only from trusted sources. Such active measures help in lowering the risk of SSCS-related security incidents, protecting the integrity of the software supply chain, and ensuring the overall cybersecurity of digital systems.

Impact of Regulatory Mandates: While the evolving landscape of cybersecurity poses challenges, the impact of global regulatory mandates cannot be overstated. They not only shape the actions of software publishers and consumers but also instill a culture of security consciousness, which is vital in the face of rampant cybersecurity threats.

The effective integration of the regulatory mandates has been demonstrated through successful instances of security breach prevention, indicating a significant contribution to the advancement of the software supply chain's overall security.

Conclusion: The regulatory mandates, more than just guidelines, shape a strategic framework that governs the way organizations globally address SSC security risks. They foster a proactive security approach, which is necessary given our fast-evolving digital landscape. As they adapt to the advancing technology, these mandates are not only guiding organizations but also enhancing software security and building trust. Their influence renders a resilient environment, constantly prepping for and adapting to the evolving and relentless cyber threats, setting a progressive path in Software Supply Chain security.