In today’s digital ecosystem, the security of the software supply chain is critical to effective third-party risk management (TPRM). A Software Bill of Materials (SBOM) acts as a detailed inventory of all software components, open-source and proprietary, used within an application. By offering deep visibility into these components, SBOMs address one of the biggest gaps in TPRM: understanding what’s inside the software vendors provide.
Following major incidents like SolarWinds and Log4j, organizations realized how easily a single vulnerable component can ripple through entire ecosystems. As a result, regulators have taken notice. The U.S. Executive Order 14028 on improving the nation’s cybersecurity now requires SBOMs for all federal software procurement, setting a new standard for transparency, accountability, and software security across industries.
Objectives of Using SBOMs in TPCRM
SBOMs serve as powerful tools for managing and mitigating software supply chain risks and the objectives of using SBOMs in third-party cyber risk management are the following:
- Risk Identification: SBOMs reveal vulnerable libraries or outdated components in vendor software, helping teams proactively address risks before exploitation.
- Compliance Assurance: They verify that open-source licenses and regulatory requirements, such as NIST and ISO 27001, are being met.
- Supply Chain Transparency: By mapping all third-party dependencies, SBOMs reduce hidden risks and improve vendor accountability.
- Incident Response: When new vulnerabilities are disclosed, SBOMs enable faster patching and remediation by identifying exactly where the affected components reside.
Together, these objectives make SBOMs essential for resilient, transparent, and compliant third-party cyber risk management.
Key Components of an SBOM
A Software Bill of Materials (SBOM) provides a standardized inventory of all components that make up a software product. Each element within an SBOM serves a unique purpose in strengthening transparency and security across the software supply chain.
The components include:
- Component Name & Version: Lists every software module, library, and dependency, allowing security teams to pinpoint vulnerable versions quickly.
- Licensing Details: Documents open-source licenses and usage restrictions to ensure compliance with legal and regulatory requirements.
- Vendor & Author Information: Identifies the creators and maintainers of each component, helping organizations track accountability and maintenance practices.
- Dependencies & Relationships: Maps how components interact, revealing transitive or fourth-party risks that could impact the broader ecosystem.
- Cryptographic Hashes: Provides integrity checks to confirm authenticity and detect tampering or unauthorized modifications.
- Standards Used: Common standards like CycloneDX, SPDX, or SWID ensure SBOM data is interoperable and can be easily exchanged across tools and systems.
Together, these components form a comprehensive, machine-readable record that enhances visibility, governance, and trust in third-party software.
How SBOMs Are Used in TPCRM Programs
SBOMs have become indispensable in Third-Party Cyber Risk Management (TPCRM) programs, helping organizations gain continuous insight into their vendors’ software ecosystems. They are used:
- During Vendor Onboarding: Security teams can request SBOMs early in procurement to assess potential risks before contracts are signed.
- In Continuous Monitoring: As software evolves, regularly updated SBOMs help detect newly discovered vulnerabilities or outdated dependencies.
- In Performance Reviews: SBOM data supports evaluating vendors’ responsiveness to patching, remediation, and software maintenance.
- For Incident Response: When zero-day vulnerabilities emerge, SBOMs enable rapid identification and mitigation, reducing exposure and downtime.
By embedding SBOMs throughout the TPCRM lifecycle, organizations strengthen their overall security posture and ensure a proactive, data-driven approach to managing third-party risks.
Technology & Automation in SBOM Management
Modern technology has made SBOM management more efficient and scalable. Automated tools such as Syft, Anchore, and Snyk streamline SBOM generation, ensuring that component inventories stay current as software evolves.
Advanced TPRM platforms now integrate SBOM data directly into vendor risk scoring, allowing organizations to evaluate suppliers based on software composition and vulnerability exposure. Artificial intelligence and threat intelligence feeds further enhance this process by automatically correlating SBOM data with CVE databases. This enables real-time alerts when new vulnerabilities arise, helping security teams prioritize mitigation and strengthen overall supply chain resilience.
SPOM Challenges & Best Practices
While Software Bills of Materials (SBOMs) provide essential transparency and control, several challenges can limit their effectiveness in third-party cyber risk management. Recognizing these hurdles is the first step toward building a more resilient and collaborative vendor ecosystem.
Challenges
Organizations often face three main obstacles when implementing SBOM programs:
- Vendor reluctance: Some suppliers are hesitant to share complete SBOMs due to intellectual property or confidentiality concerns.
- Version sprawl: Frequent software updates can make it difficult to maintain accurate, up-to-date SBOMs across complex systems.
- Lack of standardization: Without consistent industry standards, SBOM formats and data integration methods can vary widely, creating compatibility issues between tools and platforms.
Best Practices
To address these challenges and improve SBOM adoption:
- Follow NTIA guidelines and adopt the recommended minimum elements to ensure completeness and interoperability.
- Use standardized, machine-readable formats such as SPDX or CycloneDX to simplify automation and data exchange.
- Integrate SBOM reviews into existing TPRM workflows, including vendor risk assessments and continuous monitoring, to maintain visibility throughout the vendor lifecycle.
By adopting these best practices, organizations can overcome common adoption barriers and create a proactive, transparent foundation for managing third-party software risk.
SBOM Regulatory & Framework References
The growing importance of Software Bills of Materials (SBOMs) is reflected across multiple global regulations and security frameworks. In the United States, Executive Order 14028 on Improving the Nation’s Cybersecurity mandates SBOMs for all federal software procurement, emphasizing supply chain transparency. The NIST Secure Software Development Framework (SSDF) further promotes SBOMs as part of secure coding and software lifecycle management practices.
In the healthcare sector, the FDA’s draft guidance on medical device cybersecurity requires SBOMs to identify and mitigate vulnerabilities in connected technologies. Meanwhile, the EU’s Cyber Resilience Act (CRA) introduces similar requirements for software suppliers to document and disclose component risks. Together, these initiatives position SBOMs as a regulatory cornerstone for building trust and accountability across the global software supply chain.
Key Takeaways of SBOMs in TPCRM
SBOMs have become an essential element of Third-Party Cyber Risk Management (TPCRM), offering a deeper layer of visibility into the software supply chain. By cataloging every component, dependency, and license, SBOMs enable organizations to detect vulnerabilities faster, maintain regulatory compliance, and improve overall vendor governance.
Their integration into continuous monitoring frameworks strengthens transparency between businesses and their third-party vendors, ensuring risks are addressed before they escalate.
Ultimately, SBOM adoption empowers organizations to build resilient, trustworthy ecosystems, where visibility, compliance, and responsiveness form the foundation of secure third-party relationships. In a world where software dependencies are constantly expanding, SBOMs are the blueprint for confident and compliant digital partnerships.
To gain full visibility into your software supply chain and manage third-party risks effectively, book a personalized demo.