Most organisations don’t set out with the goal of building a complex web of vendors. It happens slowly. A new internet provider here, a specialist security tool there. Each decision made sense at the time. Collectively, they produce an environment where risk is high and accountability is dangerously diffused.
But what makes vendor sprawl so dangerous? And what can you do to mitigate the risks? Keep reading to discover the answers.
How Vendor Sprawl Creates Risk
Supply Chain Vulnerabilities
One of the most common cyber threats organisations face in 2026 is the dreaded supply chain attack. This is when threat actors target you by breaching one of your vendors. What makes this strategy popular is its ability to completely bypass your internal defences.
The more vendors your organisation relies on, the more susceptible you are to these kinds of threats. This is especially true if you are not vetting out each one carefully to ensure they maintain a high level of security. Even if your own defences are solid, you could still fall victim to a data breach through no fault of your own.
Lack of Accountability
When your IT vendor network becomes too complex, accountability is often the first casualty. Ideally, each partner operates within a clearly defined scope. But sometimes the origins of an issue are difficult to trace, particularly if multiple platforms are impacted at once. The more complicated your digital infrastructure is, the more likely this is to occur. When accountability becomes unclear in this way, issues take longer to solve and healthy partnerships are more difficult to maintain.
Delayed Issue Resolution
Diagnosing a problem that is occurring simultaneously across multiple platforms can be extremely challenging. Getting it resolved is even harder. Each vendor needs to be engaged separately, wasting time and money while systems remain offline. Issues that should be solved in a matter of minutes can easily take hours to address, and it’s ultimately your organisation that suffers the consequences.
Vendor Risk Management Best Practices
While vendor sprawl contributes to many of these issues, that doesn’t necessarily mean you need to limit yourself to only one or two. It is entirely possible to maintain a complex web of partnerships without experiencing negative consequences. These vendor risk management solutions will help you achieve that:
Maintain a Vendor Inventory
To manage vendors effectively, you need to understand who you’re working with. Develop an inventory that lists:
- The name of each vendor
- What they are responsible for
- Risks associated with the vendor or their technology
- The owner of the relationship and platform in your business
- When the partnership began (and is expected to end, if applicable)
- Which parts of your IT infrastructure, if any, they currently have access to
This information will help ensure that accountability remains clear even as your list continues to grow.
Conduct Structured Vendor Risk Assessments
The biggest mistake community and health organisations make is failing to vet out their third-party partners. This allows dangerous security risks to creep into your IT infrastructure over time.
Before signing a contract, always complete a vendor risk assessment. Compare your new partner against a consistent set of criteria that includes:
- Security controls
- Data handling practices
- Business continuity provisions
- Incident response capability
- Service level agreements
For higher-risk vendors, this assessment should be more detailed and reviewed more frequently.
Consolidate Where Possible
It’s possible that not every vendor relationship is contributing genuine value to your organisation. If you haven’t reviewed your existing partnerships in a long time, then it may be time to do so. Identify any vendors that can be cut or consolidated. By limiting the number of parties who have access to your IT infrastructure, you reduce risk.
Develop an Incident Response Plan
No matter how strong your vendors’ internal security practices are, there is always a small chance that one of them could experience a breach. Prepare accordingly. A well-written and thoroughly tested incident response plan helps ensure that even if the worst happens, your organisation will be able to mitigate the damage and come out safely on the other side.
Read more: Why Digital Transformation Projects Fail for Community and Health Organisations
Secure Your Organisation Inside and Out
The strongest defences in the world will not protect your organisation if threat actors can simply breach one of your vendors. If your providers are not secure, then neither are you. Risk management strategies are crucial, especially if you’re juggling many vendors at once. Implemented correctly, they will allow you to benefit from your partnerships without introducing unnecessary danger.
If you’re concerned about security within your organisation, why not ask an expert for help? We find vulnerabilities you didn’t even know existed, and address them before they can turn into a major security incident. Learn how we can secure your organisation.