InfoSec Challenges and Best Practices When Reviewing Small Critical Vendors

Jul 29, 2025

In today’s hyper-connected business environment, third-party risk management has become a cornerstone of a robust cybersecurity strategy. While large vendors often have mature security practices in place, small critical vendors can present unique challenges to an organization’s information security (InfoSec) posture. These vendors might provide essential services or technologies, yet lack the resources or infrastructure to meet the same rigorous standards of cybersecurity as larger companies. 

In this article, we’ll explore the InfoSec challenges associated with small critical vendors and outline best practices that organizations can adopt to mitigate risks—especially those looking to integrate SkyBlackBox or similar vendor risk management solutions into their operations. 

The Growing Dependence on Small Vendors 

Organizations are increasingly relying on specialized small vendors for cloud services, APIs, niche software, and consulting. These vendors can accelerate innovation and reduce costs but often come with limited security maturity. The issue is not necessarily that these companies are negligent; rather, they may not have dedicated security teams, documented incident response plans, or even basic data protection policies

InfoSec Challenges When Working with Small Vendors 

1. Lack of Security Certifications 

Many small vendors don’t have industry-recognized certifications like ISO 27001, SOC 2, or PCI DSS, which makes it harder to assess their security posture at a glance. Without these benchmarks, companies are left to manually evaluate security measures—a time-consuming and error-prone process. 

2. Limited Resources 

Smaller vendors often juggle multiple responsibilities with lean teams. This means patch management, vulnerability assessments, and regular audits may not be consistently performed, increasing the risk of data breaches

3. Shadow IT and Integration Risks 

Integration with a small vendor’s system might inadvertently introduce shadow IT risks or open your infrastructure to supply chain attacks. The recent rise in such incidents has made vendor scrutiny a high priority for cybersecurity teams

4. Inadequate Incident Response Planning 

Even when a vendor is critical to your operations, they may lack a formal incident response framework. In the event of a security breach, this can severely delay recovery efforts and worsen the impact on your organization. 

5. Poor Documentation 

Security documentation such as data flow diagrams, access control policies, and business continuity plans are often sparse or outdated in smaller organizations. This makes InfoSec due diligence more complicated. 

Best Practices for Managing InfoSec Risk with Small Vendors 

Despite the challenges, working with small vendors can be done safely with the right safeguards in place. Here are some best practices your organization should follow: 

1. Conduct Thorough Vendor Assessments 

Use a detailed vendor security questionnaire to evaluate the vendor’s data protection practices, access control, and compliance with relevant laws. Platforms like SkyBlackBox automate and centralize this process, making it easier to compare and score vendors based on risk. 

2. Classify Vendors by Risk Level 

Not all vendors are equal. Use risk-based segmentation to classify vendors based on the sensitivity of the data they handle or the criticality of the service they provide. This helps prioritize which vendors need the most scrutiny. 

3. Request Security Documentation 

Even if the vendor is small, request documentation related to their security policies, data encryption methods, and audit trails. Encourage them to pursue certifications or conduct third-party penetration testing

4. Establish Clear SLAs 

Ensure that Service Level Agreements (SLAs) include terms for data breach notifications, uptime guarantees, and security audits. These should be contractually binding and reviewed regularly. 

5. Monitor Vendor Security Posture Continuously 

Security is not a one-time review. Use tools like SkyBlackBox to perform continuous monitoring of vendor risk. This includes alerting on new vulnerabilities, breaches, or changes in the vendor’s risk score. 

6. Limit Data Access 

Apply the principle of least privilege when integrating small vendors. Only allow access to the systems and data they truly need. Implement multi-factor authentication (MFA) and role-based access control (RBAC) wherever possible. 

7. Provide Security Training 

If a small vendor lacks formal cybersecurity training, consider offering basic InfoSec awareness sessions. This can help elevate their understanding of phishing, ransomware, and data loss prevention (DLP) practices. 

How SkyBlackBox Can Help 

SkyBlackBox is designed to simplify and enhance third-party risk management by offering automation, real-time risk assessments, and robust reporting features. With customizable questionnaires, automated alerts, and a centralized dashboard, SkyBlackBox helps you stay ahead of vendor risks—no matter how small the supplier. 

It enables your InfoSec team to: 

Prioritize vendors based on criticality and threat level 

Track vendor compliance with security standards Automate risk remediation workflows Maintain an audit trail for regulatory compliance 

By integrating tools like SkyBlackBox into your vendor management process, organizations can maintain visibility and control without sacrificing the benefits of working with agile and innovative small vendors. 

Final Thoughts 

While small vendors can be a major source of innovation, they also introduce significant InfoSec risks if not properly vetted and monitored. By adopting a proactive approach—leveraging tools like SkyBlackBox, conducting thorough assessments, and setting clear expectations—organizations can strike a balance between agility and security. 

In today’s digital world, cybersecurity resilience is only as strong as the weakest link in your vendor ecosystem. Make sure that link is not a blind spot. 

Sky BlackBox is AI-empowered Vendor Risk Management that maximizes security while minimizing effort. With a suite of three integrated apps, it addresses VRM challenges for clients, vendors, and service providers. Offering 470x more accuracy, 6x lower operational costs, and 9x faster results compared to traditional methods.

Sky BlackBox © L5, 100 Market St, Sydney, NSW 2000

Sky BlackBox is AI-empowered Vendor Risk Management that maximizes security while minimizing effort. With a suite of three integrated apps, it addresses VRM challenges for clients, vendors, and service providers. Offering 470x more accuracy, 6x lower operational costs, and 9x faster results compared to traditional methods.

Sky BlackBox © L5, 100 Market St, Sydney, NSW 2000

Sky BlackBox is AI-empowered Vendor Risk Management that maximizes security while minimizing effort. With a suite of three integrated apps, it addresses VRM challenges for clients, vendors, and service providers. Offering 470x more accuracy, 6x lower operational costs, and 9x faster results compared to traditional methods.

Sky BlackBox © L5, 100 Market St, Sydney, NSW 2000