Application Security Assessment: Protecting Your Software Portfolio

Evaluate the security posture of every application in your portfolio. Learn to identify vulnerabilities, assess risk, and prioritise remediation for maximum protection.

Why Application Security Matters for Portfolio Management

The Expanding Attack Surface

Every application in your portfolio is a potential entry point for attackers. Legacy applications with outdated security, SaaS tools with weak configurations, and unmanaged shadow IT all contribute to a growing attack surface.

Key Statistics:

• 43% of cyber attacks target small and medium businesses
• Average cost of a data breach for SMEs: ₹15-50 lakh
• 60% of SMEs close within 6 months of a major breach
• 80% of breaches involve compromised credentials
• Unpatched applications account for 57% of data breaches

Security as a Portfolio Decision Factor

Application security posture should be a primary factor in portfolio rationalisation decisions:

• Insecure applications should be prioritised for migration or elimination
• Security maintenance costs should be included in TCO calculations
• Vendor security practices should influence renewal decisions
• Compliance requirements should guide portfolio composition

Security Assessment Framework

Assessment Dimensions

Authentication and Access Control:

• Multi-factor authentication availability and enforcement
• Role-based access control granularity
• Password policy enforcement
• Session management practices
• Single sign-on (SSO) integration
• API key and token management

Data Protection:

• Encryption at rest and in transit
• Data classification and handling
• Backup and recovery capabilities
• Data retention and disposal policies
• Personal data protection compliance (GDPR, PDPB)
• Cross-border data transfer controls

Vulnerability Management:

• Patch frequency and currency
• Known vulnerability count (CVEs)
• Penetration testing history
• Security audit results
• Bug bounty programme (if applicable)
• Vendor security advisories

Compliance and Governance:

• Industry certification (SOC 2, ISO 27001)
• Regulatory compliance attestations
• Audit trail and logging capabilities
• Incident response procedures
• Data processing agreements
• Subprocessor management

Architecture and Infrastructure:

• Network security controls
• Container and cloud security
• API security measures
• Dependency management
• Secure development lifecycle
• Disaster recovery capabilities

Scoring Each Application

Rate each dimension on a 1-5 scale:

• 5: Excellent – exceeds industry standards
• 4: Good – meets all requirements
• 3: Adequate – meets minimum requirements
• 2: Below standard – gaps exist
• 1: Critical – significant vulnerabilities

Risk Classification

• Score 4.0-5.0: Low Risk – continue monitoring
• Score 3.0-3.9: Moderate Risk – remediation plan needed
• Score 2.0-2.9: High Risk – urgent attention required
• Score 1.0-1.9: Critical Risk – immediate action or elimination

Vendor Security Evaluation

Questions Every SME Should Ask

Before Procurement:

• What security certifications do you hold?
• How frequently are security patches released?
• What is your incident response process and SLA?
• Where is customer data stored and processed?
• Can we review your most recent penetration test summary?
• Do you offer multi-factor authentication?
• What happens to our data if we cancel the service?

During the Relationship:

• Have there been any security incidents affecting customer data?
• What new security features have been added this year?
• Can you provide an updated SOC 2 report?
• How do you manage third-party dependencies?
• What is your vulnerability disclosure process?

Red Flags to Watch For

• No security certifications or audits
• Infrequent or irregular patching
• No multi-factor authentication option
• Vague or absent data processing agreements
• History of unreported security incidents
• No incident response SLA
• Data stored in jurisdictions without adequate protection laws

Building a Security-Aware Portfolio Strategy

Integrate Security into TIME Classifications

• Invest: Only in applications with strong security postures
• Tolerate: With mandatory security improvements and monitoring
• Migrate: Away from applications with irreparable security gaps
• Eliminate: Applications posing unacceptable security risk

Security-Driven Portfolio Actions

Immediate (This Week):

• Enable MFA on all applications that support it
• Review and revoke unnecessary user access
• Identify applications without current security patches
• Disable or remove unused accounts

Short-Term (This Month):

• Conduct vendor security assessments for top 10 applications
• Implement SSO where possible to centralise access control
• Set up monitoring and alerting for suspicious activity
• Create an application security policy

Medium-Term (This Quarter):

• Complete security assessment for entire portfolio
• Include security scores in portfolio dashboards
• Establish vendor security requirements for new procurements
• Plan migration from high-risk applications

Security Assessment Checklist

• [ ] Inventory all applications and their security features
• [ ] Score each application across all security dimensions
• [ ] Identify applications missing critical security controls
• [ ] Review vendor security certifications and audit reports
• [ ] Enable MFA on all applications that support it
• [ ] Audit user access and remove unnecessary permissions
• [ ] Check all applications for current patch levels
• [ ] Create a remediation plan for high-risk applications

Security isn't separate from portfolio management—it's a fundamental dimension of application value. An application that creates security risk is reducing its net value to the business with every day it operates. Make security a first-class citizen in every portfolio decision.