Your internal security could be flawless, but if a vendor gets breached, your data goes with them. Third-party breaches now account for 30% of all data breaches—doubling year-over-year—and the trend is accelerating. Managing vendor risk isn't optional—it's essential.
30%
Third-Party Breaches
60%
Companies With 1000+ Vendors
+$370K
Added Breach Cost
Why Third-Party Risk Matters
Every vendor with access to your systems or data represents a potential entry point for attackers. Consider what your vendors can access:
IT Service Providers
Often have admin access to your entire infrastructure.
SaaS Applications
Store your customer data, employee information, and business secrets.
HR & Payroll Services
Have access to employee PII, bank details, and SSNs.
Vendor Risk Management Framework
Maintain an inventory of all vendors with data access
Classify vendors by risk level (critical, high, medium, low)
Require security questionnaires before onboarding
Include security requirements in contracts
Monitor vendor breaches that could affect you
Conduct regular vendor security reviews
Have incident response plans for vendor breaches
The Employee Angle
When a vendor is breached, your employees' credentials may be exposed if they used work emails to register for vendor services. Credential monitoring helps identify these exposures even when they happen outside your direct control.