The digital fabric of today’s global economy is increasingly woven together by vast, interconnected software supply chains. While this complex ecosystem accelerates innovation and business agility, it also conceals a growing vulnerability: persistent blind spots that cybercriminals are eager to exploit. As organizations strive to accelerate digital transformation and integrate artificial intelligence, cloud services, and third-party applications, the risks hidden within these supply chains are reaching a critical tipping point.
Recent research shows a startling disconnect between awareness of software supply chain risk and the operational capabilities required to address it. According to LevelBlue’s comprehensive 2024 survey of 1,500 security and IT professionals across North America, Europe, Latin America, and Asia-Pacific, nearly half of organizations acknowledge that they do not have the level of visibility needed to fully assess the risks lurking within their software supply chains. Only 23% reported “very high” visibility, while 49% confessed to insufficient transparency, leaving gaping holes where attackers can slip through undetected.
This lack of visibility is more than a theoretical problem. The study found that organizations enjoying high levels of supply chain visibility reported dramatically fewer breaches (only 6%) compared to their less transparent counterparts, where the breach rate skyrocketed to 80%. The message is clear: Blind spots are not merely a governance headache—they directly translate into real-world incidents, financial loss, and reputational fallout.
The rapid adoption of AI-driven tools and a deepening reliance on third-party vendors only amplifies this complexity. Each new software integration or AI-augmented system may bring with it unseen vulnerabilities, making the supply chain as strong as its weakest, and least visible, link.
“Attackers are no longer simply going after individual companies—they are targeting the connective tissue of modern business,” cautions Theresa Lanowitz, Chief Evangelist at LevelBlue. “In an era of increasing AI disruption and evolving threats from nation-states and organized cybercriminals, resilience is based on knowing exactly what’s running in your software ecosystem.”
Dependency on third-party software further complicates the scene. Critical business functions often rest on platforms and frameworks several degrees removed from direct oversight, making it challenging to enforce consistent security standards. Open-source packages and commercial software can introduce vulnerabilities if not properly audited, monitored, and updated.
Alarmingly, the LevelBlue report reveals a notable disconnect at the executive level regarding this risk. CEOs rank software supply chain security among their top concerns, with 40% listing it as the foremost cybersecurity priority. Yet, CIOs and CTOs tend to prioritize operational uptime and immediate, visible threats, leading to organizational misalignment about where investments and resources should be focused.
Key Point: Executive buy-in is not just desirable—it’s necessary to commit the resources and attention needed to tackle these risks comprehensively.
By using risk-based frameworks, organizations can prioritize which integrations or components demand immediate scrutiny. Early visibility allows for the setting of short-term tactical goals, such as patching high-priority systems, while longer-term strategies can focus on deeper supply chain transparency and automation.
Fact Check: The U.S. Executive Order on Improving the Nation’s Cybersecurity has underscored the need for SBOM adoption to track software components—a best practice now being mirrored in the private sector and mandated for federal suppliers.
Examples include:
Continuous monitoring—not just point-in-time assessments—ensures that any changes in vendor posture or newly discovered vulnerabilities are caught before attackers can leverage them.
Best Practices:
This gap is exacerbated by the speed at which cyber risks evolve. AI-driven attacks and supply chain-specific malware payloads are already capable of bypassing basic network-level controls, targeting software updates, and inserting malicious code earlier in the development lifecycle than ever before.
A notable case study is the infamous SolarWinds attack, in which nation-state actors compromised a trusted software update mechanism, leading to widespread espionage and data theft across both public and private sectors. The root cause was a lack of deep insight into the software supply chain and insufficient controls to detect unauthorized code changes. Such attacks are increasingly sophisticated, leveraging the very tools organizations depend upon for their daily operations.
The journey starts with a candid appraisal of current visibility into all software assets and dependencies. By systematically identifying vulnerabilities, securing executive support, investing in advanced threat detection, and forging transparent supplier relationships, organizations can transform supply chain blind spots from existential threats into manageable challenges.
As attackers grow more sophisticated and supply chains more complex, the ability to withstand—and rapidly recover from—cyber attacks will increasingly separate resilient enterprises from those left exposed. It is a future defined not by blind trust, but by clear-eyed vigilance, strategic investment, and a relentless commitment to illuminating every hidden corner of the digital supply chain.
Source: Petri IT Knowledgebase Blind Spots in Software Supply Chains Raise Cyber Risk
Recent research shows a startling disconnect between awareness of software supply chain risk and the operational capabilities required to address it. According to LevelBlue’s comprehensive 2024 survey of 1,500 security and IT professionals across North America, Europe, Latin America, and Asia-Pacific, nearly half of organizations acknowledge that they do not have the level of visibility needed to fully assess the risks lurking within their software supply chains. Only 23% reported “very high” visibility, while 49% confessed to insufficient transparency, leaving gaping holes where attackers can slip through undetected.This lack of visibility is more than a theoretical problem. The study found that organizations enjoying high levels of supply chain visibility reported dramatically fewer breaches (only 6%) compared to their less transparent counterparts, where the breach rate skyrocketed to 80%. The message is clear: Blind spots are not merely a governance headache—they directly translate into real-world incidents, financial loss, and reputational fallout.
Why Does Low Visibility Equate to Higher Breach Risk?
When organizations cannot map out every node, dependency, or integration in their application ecosystem, they lose the ability to identify or mitigate threats rapidly. These blind spots are fertile ground for adversaries leveraging sophisticated tactics—be it through exploiting outdated commercial off-the-shelf (COTS) software, unpatched vulnerabilities in custom code, or unsecured API integrations.The rapid adoption of AI-driven tools and a deepening reliance on third-party vendors only amplifies this complexity. Each new software integration or AI-augmented system may bring with it unseen vulnerabilities, making the supply chain as strong as its weakest, and least visible, link.
“Attackers are no longer simply going after individual companies—they are targeting the connective tissue of modern business,” cautions Theresa Lanowitz, Chief Evangelist at LevelBlue. “In an era of increasing AI disruption and evolving threats from nation-states and organized cybercriminals, resilience is based on knowing exactly what’s running in your software ecosystem.”
The Expanding Attack Surface: AI and Third-Party Risks
Artificial intelligence, for all its promise, is rapidly expanding the cybersecurity attack surface. Not only are security professionals tasked with monitoring proprietary applications, but now they must vet an ever-growing landscape of AI-driven services and pre-built components. With every new integration—whether for process automation, analytics, or customer engagement—organizations inherit additional supply chain risk.Dependency on third-party software further complicates the scene. Critical business functions often rest on platforms and frameworks several degrees removed from direct oversight, making it challenging to enforce consistent security standards. Open-source packages and commercial software can introduce vulnerabilities if not properly audited, monitored, and updated.
Alarmingly, the LevelBlue report reveals a notable disconnect at the executive level regarding this risk. CEOs rank software supply chain security among their top concerns, with 40% listing it as the foremost cybersecurity priority. Yet, CIOs and CTOs tend to prioritize operational uptime and immediate, visible threats, leading to organizational misalignment about where investments and resources should be focused.
Global Variability: How Prepared Are Different Regions?
LevelBlue’s analysis uncovers marked regional differences in supply chain cybersecurity posture.- North America: 57% of organizations say they feel prepared for a software supply chain attack—a level higher than their global peers, but still leaving nearly half exposed.
- Europe: European companies are clear leaders in proactive investment. A robust 67% report increased investment in supply chain security enhancements, underlining a broad recognition that resilience requires commitment and long-term funding.
- Asia-Pacific: Only 44% of organizations claim readiness, underscoring the need for broader regulatory and industry focus.
- Latin America: 50% express confidence, indicating growing awareness but uneven strategic follow-through.
From Awareness to Action: Closing the Supply Chain Security Gap
While executive awareness is high, too many organizations falter when turning that awareness into actionable, sustainable risk reduction. The LevelBlue report outlines four critical steps for any IT or security leader intent on shoring up their software supply chain defenses:1. Leverage Executive Awareness
Leadership concern about software supply chain risk is a catalyst for change. IT leaders should use this momentum to advocate for increased budgets focused explicitly on supply chain cybersecurity. By articulating how specific external dependencies, shadow IT, and third-party risks contribute to enterprise exposure, they can better align cybersecurity priorities with business objectives and gain executive backing.Key Point: Executive buy-in is not just desirable—it’s necessary to commit the resources and attention needed to tackle these risks comprehensively.
2. Identify and Prioritize Vulnerabilities
Effective supply chain risk management begins with a collaborative effort across IT, product, and procurement teams to uncover the most critical vulnerabilities. Mapping out direct and indirect code dependencies, software bill of materials (SBOM), and third-party service providers is an essential first step.By using risk-based frameworks, organizations can prioritize which integrations or components demand immediate scrutiny. Early visibility allows for the setting of short-term tactical goals, such as patching high-priority systems, while longer-term strategies can focus on deeper supply chain transparency and automation.
Fact Check: The U.S. Executive Order on Improving the Nation’s Cybersecurity has underscored the need for SBOM adoption to track software components—a best practice now being mirrored in the private sector and mandated for federal suppliers.
3. Invest in Proactive Cybersecurity Measures
Organizations cannot defend against unseen threats. Advanced monitoring tools, real-time threat detection, and automated incident response have become essential in identifying anomalous activity within sprawling supply chains. Modern vulnerability management systems, which include automated scanning of dependencies and integrations, can further limit exposure to emerging exploit vectors.Examples include:
- Continuous integration/continuous deployment (CI/CD) pipeline security
- Machine learning-driven anomaly detection
- Automated software composition analysis (SCA)
- Centralized logging of third-party interactions
4. Assess and Monitor Supplier Security
No organization is an island; its cybersecurity posture is only as strong as its least secure partner. IT leaders must establish rigorous, ongoing assessment regimes for all third-party vendors and software suppliers. This means requesting and reviewing their security certifications, audit results, and response plans.Continuous monitoring—not just point-in-time assessments—ensures that any changes in vendor posture or newly discovered vulnerabilities are caught before attackers can leverage them.
Best Practices:
- Integrate supplier security checks into procurement processes
- Require evidence of secure coding practices and regular penetration testing
- Engage in threat intelligence sharing with trusted partners and industry alliances
Missed Opportunities, Unintended Risks
Despite progress in raising boardroom awareness, many organizations continue to fall short in operationalizing that knowledge. According to LevelBlue’s findings, regions with high executive concern do not always translate awareness into rapid action or sufficient investment.This gap is exacerbated by the speed at which cyber risks evolve. AI-driven attacks and supply chain-specific malware payloads are already capable of bypassing basic network-level controls, targeting software updates, and inserting malicious code earlier in the development lifecycle than ever before.
A notable case study is the infamous SolarWinds attack, in which nation-state actors compromised a trusted software update mechanism, leading to widespread espionage and data theft across both public and private sectors. The root cause was a lack of deep insight into the software supply chain and insufficient controls to detect unauthorized code changes. Such attacks are increasingly sophisticated, leveraging the very tools organizations depend upon for their daily operations.
Critical Analysis: Strengths and Ongoing Challenges
The thrust of LevelBlue’s findings aligns with several recent reports from respected cybersecurity organizations:- The 2024 ENISA (European Union Agency for Cybersecurity) Threat Landscape Report highlights software supply chain attacks as a top-five emerging threat, underscoring the need for improved transparency and supplier management.
- Gartner analysts have predicted that by 2026, 45% of organizations globally will have experienced a software supply chain attack—an increase from just 12% in 2022.
- Growing executive awareness is a clear differentiator: When CEOs and boards engage with the technical nuances of supply chain risk, investments in security often follow.
- Europe’s proactive investment in supply chain security can serve as a model, with regulatory frameworks and collaborative industry standards setting a high bar for readiness.
- Increased adoption of SBOMs is improving transparency and making software provenance traceable.
- Over-reliance on vendor assurances can breed complacency; not all suppliers operate at the same security maturity level.
- Compliance-driven “check the box” exercises do not substitute for real-time threat detection and coordinated crisis response.
- Small and mid-sized firms often lack the resources or technical expertise to execute comprehensive supply chain risk management, leaving cracks in the global digital infrastructure.
- A persistent disconnect between operational and executive teams can result in bottlenecks, delayed patching, or overlooked shadow IT projects.
Proactive Steps Forward: Recommendations for IT Leaders
Defending modern enterprises against software supply chain risk is a continuous journey, not a one-off project. To harden their posture, organizations should focus on the following pragmatic steps:- Automate Software Bill of Materials creation and management: Automation reduces human error and provides a clear record of all software components.
- Regularly simulate supply chain attack scenarios: Tabletop exercises and red-teaming should go beyond traditional network attacks to stress-test the organization’s supply chain resilience.
- Build strong cross-functional teams: Successful supply chain security requires input from developers, procurement, legal, and compliance teams—not just IT/security.
- Champion transparent vendor relationships: Create contractual requirements for rapid incident disclosure and remediation, and build partnerships with trustworthy, security-focused suppliers.
- Monitor regulatory developments: Stay ahead of evolving mandates from bodies such as ENISA, the U.S. Cybersecurity and Infrastructure Security Agency (CISA), and supply chain-focused working groups.
The Road Ahead: Building Resilience in the Face of Escalating Threats
In the age of ubiquitous connectivity and expanding digital ecosystems, blind spots in the software supply chain represent an outsized risk to organizations of all shapes and sizes. While the road to supply chain security is fraught with complexity, the good news is that actionable steps are available to any organization willing to invest in visibility, collaboration, and continuous improvement.The journey starts with a candid appraisal of current visibility into all software assets and dependencies. By systematically identifying vulnerabilities, securing executive support, investing in advanced threat detection, and forging transparent supplier relationships, organizations can transform supply chain blind spots from existential threats into manageable challenges.
As attackers grow more sophisticated and supply chains more complex, the ability to withstand—and rapidly recover from—cyber attacks will increasingly separate resilient enterprises from those left exposed. It is a future defined not by blind trust, but by clear-eyed vigilance, strategic investment, and a relentless commitment to illuminating every hidden corner of the digital supply chain.
Source: Petri IT Knowledgebase Blind Spots in Software Supply Chains Raise Cyber Risk