Securing the supply chain of information and communications technology (ICT) has recently emerged as a critical concern for national security and integrity. With the proliferation of Internet of Things (IoT) devices and their increasing role in controlling real world infrastructure, there is a need to analyze risks in networked systems beyond established security analyses. Existing methods in literature typically leverage attack and fault trees to analyze malicious activity and its impact. In this paper, we develop RIoTS, a security risk assessment framework borrowing from system reliability theory to incorporate the supply chain. We also analyze the impact of grouping within suppliers that may pose hidden risks to the systems from malicious supply chain actors. The results show that the proposed analysis is able to reveal hidden threats posed to the IoT ecosystem from potential supplier collusion.