The Liability Nobody Put on the Balance Sheet By Jacqueline Winter, CFO & CISO, ActiveState Most organizations have detailed processes for approving financial instruments they take onto their books. Open source software does not seem to get the same treatment. This week's events are a useful reminder of what that inconsistency costs. Every CFO understands that an unmanaged liability is a governance failure. When a company takes on a contractual commitment, it runs due diligence. It documents the decision. It assigns ownership of the ongoing risk. It does not simply accept the commitment because it arrived through an approved channel with valid paperwork. Open source software is on every balance sheet in the industry, and in most organizations, it has never been through that process. I have seen this failure mode in other domains. In financial controls, in vendor risk, in operational infrastructure. The pattern is identical every time: an organization builds processes for the ...