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Third-Party Risk is Your Responsibility

Written by Kurt Thomas | Feb 24, 2026 11:30:00 AM

Introduction

Your organization doesn't exist in isolation. You rely on vendors for cloud services, payment processing, accounting software, and countless other critical functions. When one of those vendors experiences a breach, your data is exposed—and regulators will hold you accountable for inadequate vendor oversight.

The Supply Chain Vulnerability

A breach at a vendor you've never heard of can compromise your systems. Many attacks follow the path of least resistance, targeting smaller vendors with weaker security just to access their larger customers. You're only as secure as your most vulnerable vendor connection.

Due Diligence Isn't Optional

Vendor management requires continuous oversight. You should review security certifications (SOC 2, ISO 27001), understand their incident response procedures, and require contractual commitments to notify you immediately of breaches. One-time security questionnaires aren't enough—vendors evolve, threats emerge, and compliance gaps appear.

Vendor Risk Management Essentials:

Security Questionnaires: Understand vendor security practices before signing contracts.

Data Access Reviews: Know exactly what vendors can access and why.

Insurance Requirements: Ensure vendors carry cyber liability coverage.

Regular Audits: Schedule periodic reviews of critical vendor security posture.

Conclusion

Your vendors are extensions of your security perimeter. Neglecting third-party risk management is like securing your office doors while leaving windows open. Vendor oversight isn't optional—it's a core responsibility.