Vendor Risk Assessments: Securing Your Supply Chain

Supply chain and third‑party compromises have emerged as some of the fastest-growing cyber threats for Small- and Medium-sized Businesses (SMBs), with recent analyses highlighting that cloud misconfigurations and vendor-related weaknesses are major contributors to incidents. At the same time, thousands of new software vulnerabilities are disclosed each year, creating a growing pile of “security risks” that affects not just your systems but those of your partners and customers.

Why Third‑Party Risk Is So Dangerous for SMBs

Modern businesses rely heavily on external providers for email, payment processing, cloud storage, HR systems, and more. Each connection introduces another potential path for attackers, especially when vendors have broad access to data or internal networks. Yet many SMBs still choose vendors primarily on cost and features, with minimal structured review of security posture or ongoing monitoring. When a vendor suffers a breach, your customers rarely distinguish between your systems and theirs; they see a failure of your brand’s protection.

Complicating matters, many organizations often lack visibility into how their vendors manage vulnerabilities, backups, or incident response. Contracts may not clearly define security expectations, breach notification timelines, or responsibilities in the event of a compromise. As regulators and customers increase scrutiny of supply chain security, organizations that cannot demonstrate a basic vendor risk management process risk losing trust and facing compliance or contractual issues when something goes wrong.

How Advisory-Led Vendor Risk Programs Protect SMBs

Cyber advisory services help SMBs build sensible, right-sized vendor risk management programs that fit their scale. That typically starts with classifying vendors based on the sensitivity of data they handle or the criticality of the services they provide, then tailoring questionnaires, contract clauses, and review frequencies accordingly. Advisors can help define practical security requirements, such as encryption, access controls, incident notification, and certificates or attestations that vendors should provide.​

A firm like Security Perspectives can also assist in reviewing responses, identifying red flags, and recommending remediation steps or alternative providers when necessary. Over time, this structured approach turns vendor security from an ad hoc concern into a repeatable process, improving due diligence during procurement and creating an evidence trail that supports customer and regulatory expectations. For SMBs facing increasing supply chain risk, even a modest but consistent vendor assessment program can dramatically reduce exposure.​

Align your security with your customers’ policies

If you rely on key vendors or SaaS providers and want to better understand your third‑party risk, request a 30‑minute vendor risk strategy session with Scott.