The OWASP Top 10 is a highly respected guide that identifies the most critical web application security risks. Published by the Open Web Application Security Project (OWASP), this list serves as a benchmark for security professionals and developers to design, build, and maintain secure software. Its relevance is magnified during technical due diligence, a process often employed by investors, venture capitalists, or acquirers to assess the technical health and security posture of a company.
In this post, we explore the OWASP Top 10, the risks it outlines, and why adhering to these principles is crucial in the context of technical due diligence.
The OWASP Top 10 Overview
The OWASP Top 10 is regularly updated to reflect the changing landscape of web application security. The latest edition emphasizes modern threats, providing a roadmap to counter vulnerabilities that can lead to data breaches, service disruptions, or regulatory non-compliance. Below are the 10 risks identified in the 2021 OWASP Top 10, along with their identifiers:
Broken Access Control (OWASP 2021:A01)
Broken Access Control occurs when applications do not properly enforce restrictions on authenticated users, allowing them to access or modify data outside their permission scope. Examples include bypassing authorization checks, manipulating URLs or APIs, or elevating user privileges. Such vulnerabilities can result in unauthorized access to sensitive information, altering of critical data, or even complete account takeover. This issue often arises due to misconfigured access rules or lack of centralized authorization logic. Addressing this risk involves implementing strong role-based access control (RBAC), thorough testing, and ensuring consistent enforcement of authorization rules across all parts of the application.
Cryptographic Failures (OWASP 2021:A02)
Cryptographic Failures, previously categorized as “Sensitive Data Exposure,” occur when sensitive data is inadequately protected using cryptography. Common examples include weak encryption algorithms, improper key management, and transmitting sensitive data in plaintext. These failures can lead to data breaches, exposing user credentials, financial data, or other private information to attackers. Organizations often overlook secure implementation of cryptographic standards, leaving data vulnerable during storage or transit. To mitigate this, developers should use modern cryptographic algorithms, enforce secure communication protocols like HTTPS, and adopt robust practices for key management and data protection.
Injection (OWASP 2021:A03)
Injection flaws occur when untrusted data is sent to an interpreter as part of a query or command, enabling attackers to execute unintended commands. Common forms include SQL injection, NoSQL injection, and command injection, all of which can lead to data theft, data manipulation, or complete compromise of the underlying system. These vulnerabilities typically arise due to insufficient input validation and insecure query construction. Attackers exploit these flaws to bypass authentication, extract sensitive information, or alter the application’s behavior. Preventing injection attacks requires parameterized queries, input sanitization, and using Object Relational Mapping (ORM) tools to separate user inputs from executable code.
Insecure Design (OWASP 2021:A04)
Insecure Design refers to fundamental flaws in an application’s architecture or workflows, which create exploitable vulnerabilities. Unlike coding issues, these problems stem from inadequate planning and threat modeling during the design phase. Examples include overly complex permission structures, lack of secure default settings, or absence of account lockout mechanisms for brute force protection. This risk highlights the importance of integrating security into the software development lifecycle (SDLC) from the very beginning. To address insecure design, organizations should adopt secure design principles, conduct regular threat modeling exercises, and ensure that security requirements are built into every phase of development.
Security Misconfiguration (OWASP 2021:A05)
Security Misconfiguration occurs when applications, servers, or networks are improperly configured, leaving them exposed to attacks. Examples include leaving default credentials unchanged, enabling unnecessary features, or failing to disable debugging modes in production. Misconfigurations can provide attackers with easy entry points, allowing them to exploit vulnerabilities, access sensitive data, or compromise systems. This risk often arises from inconsistent security practices, lack of automation, or inadequate testing of deployment environments. Mitigation involves enforcing secure defaults, conducting regular configuration reviews, and automating security checks as part of continuous integration and deployment (CI/CD) pipelines.
Vulnerable and Outdated Components (OWASP 2021:A06)
This risk highlights the dangers of relying on outdated or unpatched software components, including libraries, frameworks, and APIs. Attackers often exploit known vulnerabilities in these components to gain unauthorized access or compromise systems. Using such components can also introduce compatibility issues or disrupt application performance. Many organizations fail to track or update dependencies, leading to significant security gaps. To address this, organizations should maintain an up-to-date inventory of dependencies, use tools for Software Composition Analysis (SCA), and establish automated processes to apply patches or updates as soon as they are available.
Identification and Authentication Failures (OWASP 2021:A07)
Weak or improperly implemented identification and authentication mechanisms can allow attackers to impersonate legitimate users or compromise accounts. Examples include insecure password storage, lack of multi-factor authentication (MFA), or allowing unlimited login attempts. These failures can lead to account takeovers, unauthorized data access, or further exploitation of the system. Organizations often underestimate the importance of robust authentication, relying on outdated or insecure practices. To mitigate this risk, developers should implement strong password policies, enforce MFA wherever possible, and use secure authentication frameworks to minimize vulnerabilities.
Software and Data Integrity Failures (OWASP 2021:A08)
Software and Data Integrity Failures occur when applications fail to validate the integrity of software updates, libraries, or dependencies. Attackers exploit these gaps by injecting malicious code into updates or compromising supply chains. This can lead to the deployment of compromised applications or unauthorized access to sensitive data. Examples include allowing unsigned software updates or using libraries from unverified sources. To prevent such failures, organizations should adopt signed software practices, validate external dependencies, and implement strict controls for monitoring changes in the software supply chain.
Security Logging and Monitoring Failures (OWASP 2021:A09)
Inadequate logging and monitoring can leave organizations blind to ongoing attacks or prevent them from detecting breaches in a timely manner. Without proper logging, incidents such as brute force attacks, unauthorized access, or data exfiltration may go unnoticed. Many organizations fail to prioritize logging due to performance concerns or lack of expertise. Effective security monitoring includes centralized logging, timely alerting, and regular review of log data to detect anomalies. Implementing robust logging frameworks and integrating them with Security Information and Event Management (SIEM) systems can significantly enhance an organization’s incident response capabilities.
Server-Side Request Forgery (SSRF) (OWASP 2021:A10)
Server-Side Request Forgery (SSRF) occurs when an attacker tricks a server into making requests to unauthorized or unintended resources. This can lead to the exposure of sensitive data, access to internal systems, or even full compromise of the server. SSRF vulnerabilities often arise when applications fetch external resources without validating the user-provided URLs. Attackers can exploit this to bypass firewalls, interact with internal APIs, or exfiltrate sensitive information. To mitigate SSRF, organizations should validate and sanitize user inputs, enforce allowlists for external requests, and apply strict firewall rules to limit access to internal resources.
Why the OWASP Top 10 Matters in Tech Due Diligence
For software companies, adherence to OWASP standards demonstrates a commitment to security. When technical due diligence is performed, evaluators look closely at how well the company adheres to these guidelines. Here’s why the OWASP Top 10 is critical in your next due diligence:
Risk Reduction
Security vulnerabilities pose significant risks to business operations, user trust, and compliance. Addressing the OWASP Top 10 reduces exposure to common threats, ensuring the organization is better equipped to handle potential attacks.
For example, a company found to have injection vulnerabilities (OWASP 2021:A03) or insecure authentication mechanisms (OWASP 2021:A07) might be at risk of data breaches, leading to costly consequences. By proactively addressing such issues, the company mitigates these risks before they escalate.
Regulatory Compliance
Many regulatory frameworks, such as GDPR, CCPA, and PCI DSS, require organizations to maintain robust security measures. Adhering to the OWASP Top 10 aligns with these requirements, making it easier for organizations to demonstrate compliance during due diligence.
Consider cryptographic failures (OWASP 2021:A02): a technical due diligence process may uncover inadequate encryption of sensitive data, potentially flagging the company for non-compliance with GDPR’s strict data protection mandates.
3. Market Reputation
In a competitive market, a reputation for strong security practices can set a company apart. Conversely, a publicized security incident due to negligence in handling OWASP Top 10 vulnerabilities can damage trust and deter investors.
Technical due diligence focuses on assessing risks not just from a technical perspective but also from a reputational one. An organization’s ability to demonstrate a proactive approach to security can boost investor confidence.
4. Cost Management
Fixing vulnerabilities post-breach is exponentially costlier than addressing them during development. If technical due diligence uncovers widespread security issues, it might lead to renegotiated terms, lowered valuations, or even deal abandonment.
For example, a company relying on outdated and vulnerable components (OWASP 2021:A06) may face steep costs to refactor its software. Proactively addressing these vulnerabilities during development is far more cost-effective than doing so under duress.
5. Future-Proofing
Security threats evolve rapidly, and the OWASP Top 10 serves as a guideline to address the most prevalent risks. Organizations that embed OWASP principles into their development lifecycle are better prepared to adapt to emerging threats.
During technical due diligence, this forward-thinking approach signals maturity and resilience, appealing to investors seeking long-term value.
How to Use the OWASP Top 10 in Technical Due Diligence
Integrating the OWASP Top 10 into technical due diligence involves both technical and organizational assessments. Below are key steps:
1. Code and Architecture Review
Evaluators should scrutinize the codebase for vulnerabilities outlined in the OWASP Top 10. Tools like SAST (Static Application Security Testing) and DAST (Dynamic Application Security Testing) can identify vulnerabilities such as injection flaws (OWASP 2021:A03) or insecure design patterns (OWASP 2021:A04).
2. Dependency Analysis
Using tools like Software Composition Analysis (SCA), due diligence teams can examine the libraries and frameworks used by the application. Outdated or vulnerable components (OWASP 2021:A06) are red flags.
3. Security Documentation
Documentation on how the company addresses security concerns speaks volumes. A lack of comprehensive documentation on access control (OWASP 2021:A01), cryptographic protocols (OWASP 2021:A02), or security monitoring (OWASP 2021:A09) may indicate immature processes.
4. Organizational Practices
Technical due diligence extends beyond code. Evaluators should assess whether security training and best practices are embedded into the company’s culture. Regular training and adherence to OWASP principles signal organizational maturity.
5. Incident Response and Monitoring
Security monitoring and logging are critical. If a company cannot detect or respond to incidents promptly, it risks greater fallout. Addressing OWASP’s focus on logging and monitoring failures (OWASP 2021:A09) ensures readiness for real-world scenarios.
Conclusion
The OWASP Top 10 is more than a checklist; it’s a framework for embedding security into the DNA of an organization. In technical due diligence, these principles serve as a litmus test for evaluating a company’s readiness to face modern security challenges.
By prioritizing these risks, organizations can build trust, ensure compliance, and safeguard their reputation—all while reducing costs and preparing for future threats. For investors, adherence to the OWASP Top 10 signals technical and organizational maturity, making it an essential metric in decision-making.
For companies undergoing technical due diligence, investing in OWASP-aligned practices isn’t just a defensive measure—it’s a competitive advantage.
