Software Supply Chain Risk Assessment Template

Software supply chain attacks increased 742% between 2019 and 2022, according to Sonatype's State of the Software Supply Chain report. Your organization likely depends on hundreds of software vendors—from critical infrastructure providers to single-purpose SaaS tools—each introducing unique risks to your environment.

A Software Supply Chain Risk Assessment Template transforms this complexity into manageable oversight. Rather than starting from scratch with each vendor, you apply consistent evaluation criteria across your software ecosystem. The template captures technical dependencies, security controls, data handling practices, and business continuity measures in a format that supports both initial assessments and ongoing monitoring.

For TPRM managers juggling multiple frameworks, this template serves as your universal translator—mapping vendor evidence to SOC 2 Trust Service Criteria, ISO 27001 Annex A controls, NIST CSF categories, and industry-specific requirements like FFIEC IT Examination Handbook or HIPAA Security Rule.

Core Template Components

Vendor Profile and Criticality Scoring

Start with vendor classification. Your template should capture:

Business Context

• Service description and primary functionality
• Data types processed (PII, PHI, financial records, source code)
• User base and access levels
• Integration points with your systems
• Annual contract value and renewal dates

Technical Dependencies

• API connections and authentication methods
• Third-party libraries and open source components
• Cloud infrastructure providers (AWS, Azure, GCP)
• Content delivery networks and external services
• Development and deployment toolchains

Criticality Scoring Matrix

Factor	High Risk (3)	Medium Risk (2)	Low Risk (1)
Data Sensitivity	Processes regulated data (PII/PHI/PCI)	Handles internal business data	No sensitive data access
System Integration	Direct production access	Limited API connectivity	Standalone system
User Count	>1000 users or public-facing	100-1000 internal users	<100 users
Recovery Time Objective	<4 hours	4-24 hours	>24 hours

Security Control Assessment

Map vendor controls to your compliance requirements through structured evidence collection:

Development Security

• Secure SDLC documentation
• Code review processes and tools
• Vulnerability scanning frequency and remediation SLAs
• Penetration testing reports (last 12 months)
• Bug bounty program details

Access Management

• Authentication mechanisms (MFA, SSO, API keys)
• Authorization models and role definitions
• Privileged access management
• Audit logging capabilities
• Session management controls

Data Protection

• Encryption at rest (algorithms, key management)
• Encryption in transit (TLS versions, certificate management)
• Data retention and deletion procedures
• Backup and recovery processes
• Geographic data residency controls

Supply Chain Dependency Mapping

Software vendors rarely operate in isolation. Your template must capture:

Subservice Provider Inventory Document each fourth-party relationship:

• Infrastructure providers (IaaS/PaaS)
• Security service providers (WAF, DDoS protection)
• Development tools (CI/CD, monitoring)
• Data processors and analytics services

Dependency Risk Assessment For each subservice provider:

• Service criticality to vendor operations
• Concentration risk (single points of failure)
• Geographic jurisdiction
• Security certifications held
• Incident history

Incident Response and Business Continuity

Incident Response Capabilities

• 24/7 security contact information
• Incident notification SLAs
• Communication protocols during breaches
• Forensic capabilities and evidence preservation
• Customer data extraction procedures

Business Continuity Planning

• RTO/RPO commitments by service tier
• Disaster recovery test results
• Failover capabilities and geographic redundancy
• Pandemic/workforce disruption plans
• Financial viability indicators

Industry-Specific Applications

Financial Services

FFIEC guidance requires enhanced due diligence for critical vendors. Your template should include:

• Compliance with FFIEC Authentication Guidance
• Gramm-Leach-Bliley Act safeguards assessment
• SOX control documentation for financial reporting systems
• NY DFS 23 NYCRR 500 third-party security requirements

Healthcare

HIPAA-covered entities need additional controls:

• Business Associate Agreement (BAA) execution status
• HIPAA Security Rule administrative, physical, and technical safeguards
• Breach notification procedures aligned with HHS requirements
• Minimum necessary data access implementations

Technology Companies

Focus on intellectual property and competitive risks:

• Source code escrow arrangements
• Non-compete and confidentiality provisions
• API versioning and deprecation policies
• Multi-tenant isolation controls

Framework Alignment

SOC 2 Mapping

Structure assessments around Trust Service Criteria:

• CC6.1: Logical and physical access controls
• CC7.2: System monitoring and anomaly detection
• CC7.3: Security incident evaluation
• CC7.4: Incident response and remediation
• A1.1: System availability commitments

ISO 27001:2022 Coverage

Reference specific Annex A controls:

• A.5.19: Information security in supplier relationships
• A.5.20: Addressing security within supplier agreements
• A.5.21: Managing information security in the ICT supply chain
• A.8.30: Outsourced development

NIST Cybersecurity Framework

Align to NIST functions:

• ID.SC-1: Cyber supply chain risk management processes
• ID.SC-2: Supplier risk assessments
• ID.SC-3: Contract requirements for cybersecurity
• ID.SC-4: Routine supplier assessments
• ID.SC-5: Response and recovery planning

Implementation Best Practices

1. Risk-Based Assessment Frequency

• Critical vendors: Quarterly control attestation, annual onsite assessment
• High-risk vendors: Semi-annual DDQ, annual penetration test review
• Medium-risk vendors: Annual DDQ and certification verification
• Low-risk vendors: Annual attestation, biennial full assessment

2. Evidence Collection Automation

Reduce manual effort through:

• API integration for continuous control monitoring
• Automated certificate expiration tracking
• Security rating service integration
• Standardized evidence repositories by control family

3. Stakeholder Engagement Model

Define clear responsibilities:

• Procurement: Initial risk tiering and contract requirements
• Information Security: Technical control validation
• Legal: Data processing agreement review
• Business Owner: Criticality scoring and access approval
• Internal Audit: Independent assessment validation

Common Implementation Mistakes

1. One-Size-Fits-All Assessments

Sending the same 300-question DDQ to every vendor wastes time and damages relationships. Match assessment depth to risk tier.

2. Point-in-Time Thinking

Annual assessments miss emerging risks. Build continuous monitoring through security ratings, certificate tracking, and automated alerts.

3. Ignoring Fourth Parties

Vendor subdependencies caused major breaches (Target/HVAC, SolarWinds/Orion). Map critical fourth parties explicitly.

4. Control Without Context

Raw control scores miss business reality. A startup's compensating controls might provide equal assurance to enterprise capabilities.

5. Manual Everything

Excel-based assessments don't scale. Invest in platforms that automate evidence collection, control mapping, and risk scoring.

Frequently Asked Questions

How many controls should my software supply chain assessment include?

Target 50-75 controls for critical vendors, 25-35 for high-risk, and 10-15 for standard vendors. Focus on controls that directly address your regulatory requirements and risk appetite.

Should I use the same template for SaaS vendors and custom development partners?

Use the same framework but adjust control emphasis. SaaS assessments focus on operational security and data handling. Development partners require deeper SDLC, code security, and IP protection controls.

How do I handle vendors who refuse to complete detailed assessments?

Establish minimum evidence requirements in contracts. Accept alternative evidence like SOC 2 Type II reports, ISO 27001 certificates, or shared assessment reports. For critical vendors, make assessment completion a contractual requirement.

What's the difference between software supply chain risk and general vendor risk?

Software supply chain risk includes unique threats like malicious code injection, API vulnerabilities, and cascading technical failures. General vendor risk frameworks often miss these software-specific attack vectors.

How often should I update my assessment template?

Review quarterly for regulatory changes and annually for comprehensive updates. Add new controls within 30 days of major incidents in your industry that reveal previously unassessed risks.

Can I rely solely on security ratings instead of assessments?

Security ratings provide valuable continuous monitoring but miss internal controls, development practices, and business context. Use ratings to supplement, not replace, comprehensive assessments for critical vendors.