To gain a deeper understanding of these challenges and how companies can address them, we explored insights from Zvika Ronen, CTO of FOSSAware, a recognized expert in open source governance, risk management, and compliance. His experience in tech due diligence, OpenChain compliance, and ISO/IEC 5230 assessments sheds light on how organizations can integrate open source software securely and responsibly.
This article examines real-world risks, evolving regulations, and industry best practices to help companies improve their open source risk management strategies.
Why Open Source Can Be a Hidden Risk for Companies
While OSS provides enormous advantages, its management is often overlooked, leading to significant risks:
- License violations – Non-compliance with open source licenses can result in lawsuits, forced code disclosure, or financial penalties.
- Security vulnerabilities – Unpatched OSS components create attack vectors for cybercriminals.
- Operational disruptions – Outdated or abandoned dependencies can break critical infrastructure.
- Regulatory exposure – New laws and compliance frameworks require stricter OSS governance.
According to Zvika Ronen, one of the biggest challenges is that companies lack visibility into their open source dependencies, often realizing the risks only after an incident occurs.
Real-World Consequences of Poor Open Source Management
Lawsuits Due to License Violations
A global tech company incorporated an open source library without complying with its GPLv2 license, which required modifications to be made publicly available. The company faced legal action, resulting in:
- Code release obligations that exposed proprietary innovations.
- Financial settlements and legal costs.
- Reputational damage, impacting investor confidence.
A Security Breach from an Unpatched Open Source Component
One of the most infamous cybersecurity failures—the Equifax breach—occurred due to an unpatched vulnerability in an open sourcecomponent. The issue had been publicly disclosed months before the attack, yet it remained unaddressed, ultimately leading to the exposure of over 143 million credit rating customer records.
Compliance Failures and Regulatory Fines
A financial services provider relied on an OSS component that later fell under new DORA regulation requirements. Once regulators flagged non-compliance, the company had to:
- Redesign significant portions of its software.
- Delay product releases, causing revenue loss.
- Undergo costly audits and regulatory fines.
How Organizations Can Improve Open Source Risk Management
To mitigate these risks, organizations must proactively manage their OSS usage, enforce governance policies, and integrate security and compliance measures. Based on industry best practices, here are key areas to focus on:
Conducting Open Source Audits for Full Visibility
One of the most common pitfalls in OSS risk management is not knowing what’s inside your software stack. Organizations should conduct regular software composition analysis (SCA) to:
- Map all open source components and dependencies.
- Verify license compliance obligations.
- Detect security vulnerabilities in OSS libraries.
Establishing Open Source Governance & Compliance Policies
With the increasing adoption of ISO/IEC 5230 (OpenChain) and ISO 18974, companies need a clear strategy for managing OSS, including:
- Defining permitted and restricted OSS licenses.
- Implementing secure integration processes for OSS adoption.
- security teams are involved in OSS decisions.
Automating Security & License Compliance Monitoring
Manually tracking OSS dependencies is inefficient. Automated solutions can:
- Detect vulnerabilities and unmaintained components in real time.
- Flag potential license conflicts before deployment.
- Integrate into DevSecOps workflows to ensure ongoing compliance.;
Strengthening Open Source Security Through DevSecOps
Patching of OSS vulnerabilities.
- Automated patching of OSS vulnerabilities.
- Container security scanning for OSS-based applications.
- Continuous security monitoring throughout the CI/CD pipeline.
Preparing for M&A Due Diligence with Open Source Risk Assessments
Open source risks can impact M&A transactions and technology investments. Investors and acquirers should conduct OSS compliance and security assessments to:
- Identify potential legal and security risks in target companies.
- Ensure OSS dependencies meet regulatory requirements.
- Evaluate long-term maintainability and sustainability of OSS components.
Training Teams to Improve OSS Awareness & Best Practices
Many OSS risks arise from a lack of awareness among developers and product managers. Organizations should invest in:
- Ongoing training for legal and security teams on OSS risks.
- Workshops on proper license compliance and risk assessment.
- Internal guidelines to prevent accidental OSS misuse.
Future Trends in Open Source Risk Management
- More widespread adoption of OpenChain compliance standards – Companies are implementing ISO/IEC 5230 as a baseline for open source management.
- Stronger security and compliance automation – Organizations are integrating AI-powered tools to detect security vulnerabilities and automate risk analysis.
- Open source supply chain security becoming a priority – Following major incidents like Log4Shell, companies are taking a proactive approach to securing OSS dependencies.
The Importance of Proactive OSS Risk Management
As open source becomes a fundamental part of software development, organizations must take a structured approach to managing its risks.
- Legal compliance is critical – Open source mismanagement can lead to litigation, fines, and business disruptions.
- Security vulnerabilities need continuous monitoring – Unpatched OSS flaws are among the most exploited attack vectors.
- Organizations that prioritize OSS governance will gain a competitive advantage – Implementing best practices ensures stability, security, and compliance in the long run.
Or, as Zvika likes to say:
“Open source isn’t just about software—it’s about risk management, security, and compliance.”
