1. Why Vendors Increase Your Cyber Risk

Most vendors have access to your systems, data, or sensitive business processes. If their security fails, attackers can move directly into your environment.

Small businesses are often targeted through vendors because it’s an easier entry point.

2. The Most Common Vendor-Related Risks

• Weak passwords used by vendor staff
• Remote access tools left open or misconfigured
• Third-party software vulnerabilities not patched by the vendor
• Employee errors at the vendor’s company
• Poor data handling practices leading to accidental exposure

You may have excellent security — but your vendor may not.

3. The Impact of a Vendor Breach

When a vendor is compromised, your business may experience:

• System downtime
• Exposure of customer or employee data
• Unauthorized access to business email or cloud systems
• Financial fraud or payment redirection
• Reputational damage — even though it wasn’t your mistake

Most customers don’t differentiate — they will blame the business they interact with, not the vendor.

4. How to Reduce Vendor Cyber Risk (Simple Steps)

You don’t need a large cybersecurity team to manage vendor risk. A few practical steps go a long way.

✔ Step 1: Ask Vendors Basic Security Questions

For example:

• Do you use MFA for all staff?
• How do you protect customer data?
• Do you have recent third-party security certifications?
• How quickly do you apply security updates?
• If you have an incident, how do you notify clients?

✔ Step 2: Limit Vendor Access

Vendors should only access the systems they need — and nothing more. Remove unused access regularly.

✔ Step 3: Get Notifications When Something Changes

If a vendor adds a new user, modifies access, or connects a new tool, you should be notified.

✔ Step 4: Ensure Vendors Use MFA and Strong Passwords

If vendor staff can access your systems, they must use the same level of protection your own staff does.

5. Signs a Vendor May Be a High Risk

• They refuse to answer basic security questions
• They avoid showing proof of certifications
• They can’t explain how they protect your data
• They insist on full admin access for everything
• You discover changes they didn’t tell you about

High-risk vendors increase your exposure — even if the relationship seems small.

6. The Goal: Vendors That Strengthen Your Security, Not Weaken It

Vendor risk doesn’t mean eliminating vendors. It means choosing partners who take security seriously — and holding them accountable.

With the right questions and access controls, your vendors become allies instead of liabilities.