Don’t Ignore Vendor Risk: Why Third-Party Security Matters

Even if your business is secure, your vendors might not be. And that can still put you at risk.

Here’s why third-party security matters — and how small businesses can protect themselves when working with outside providers.

1. Vendors Often Have Access to Your Systems or Data

Whether it's your IT provider, payroll service, or cloud software, third parties may handle sensitive information. A breach on their side can impact your business.

2. You May Still Be Held Responsible

In many cases, customers and regulators won’t care who caused the breach. If it's your data, it’s your problem.

3. Not All Vendors Have Strong Security

Small businesses often assume vendors are secure. But that’s not always true. Some don’t have policies, training, or basic protections in place.

4. What You Can Do

• Ask vendors about their security practices

• Limit what data or access they actually need

• Review agreements for data protection clauses

• Have a list of approved vendors and revisit it regularly

Our Final Thought:

Your cybersecurity is only as strong as the weakest link — and sometimes, that link is outside your business. Know who you’re working with, and ask the right questions.

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