How Vendor Cybersecurity Risks Could Compromise Your Business

You’ve trained your staff, implemented firewalls, enforced multi-factor authentication, and regularly update your systems—your business’s cybersecurity feels solid. But what about the people and businesses you work with? Are your vendors and subcontractors taking cybersecurity as seriously as you are?

Third-Party Cybersecurity: The Hidden Risk in Your Supply Chain

One of the most overlooked areas in small business cybersecurity is third-party risk management. Vendors, contractors, and other service providers can inadvertently create vulnerabilities that cybercriminals exploit. This is especially true for small firms in regulated industries like healthcare, legal, financial services, and manufacturing.

While these small businesses may believe they are “under the radar,” they often serve as digital backdoors into larger enterprises. Attackers know that targeting a subcontractor can yield access to more significant and well-defended targets.

Why Supply Chain Security Should Be a Priority

If you’re a manufacturer, your component or raw material vendors might handle sensitive order information or even log into your systems. If you’re a medical office, you may share patient records with labs or billing services. Without proper vendor cybersecurity practices in place, this exchange of information could expose you to data breaches or compliance violations.

It only takes one unsecured partner to jeopardize the integrity of your entire system. That’s why managing cybersecurity threats from vendors is a core part of protecting your business.

Securing Your Business Through Vendor Risk Management

To minimize third-party cybersecurity risks, businesses should establish clear guidelines and protocols for all external partners. Ask yourself the following:

Do your vendors follow cybersecurity best practices?
Are they regularly updating and patching their systems?
Have they conducted a risk assessment or penetration test recently?
Are they storing and transmitting data securely?
Do they have an incident response plan?

Develop a vendor risk management policy that includes cybersecurity audits, contract clauses about data protection, and mandatory compliance with relevant regulations. You should also consider using third-party risk assessment tools or working with a managed service provider (MSP) to oversee the process.

Don’t Let Subcontractors Compromise Your Security

Your vendors must be as invested in IT security in your supply chain as you are. Every organization that touches your data must uphold the same standards you enforce internally. If not, your business remains exposed—even with the best internal policies in place.

Cybercriminals are opportunistic, and vendor cybersecurity risks are one of the easiest entry points for them. Don’t assume your vendors are secure—verify it.

Tobin Solutions can help. We provide security consulting for small and midsize businesses, including third-party risk assessments, vendor management guidance, and compliance support. Whether you’re in manufacturing, healthcare, or professional services, our team ensures your extended network is just as secure as your internal one.

Contact Tobin Solutions today to protect your business from third-party cybersecurity threats. Call 414-443-9999 or email us at info@tobinsolutions.com.