Most Canadian businesses rely on a network of vendors to keep operations running smoothly. Critical procedures, such as payroll processing, IT infrastructure, document storage, or customer platforms, typically require external providers to ensure efficiency and flexibility. However, these providers introduce exposure points that businesses don’t fully control. As vendor ecosystems grow, so do the risks, particularly for SMBs that don’t always have dedicated security teams monitoring third-party activity.

Even a minor vendor breach can lead to a catastrophic ripple effect, potentially impacting operations, compliance, and brand reputation. Because of this, vendor security needs to be part of a business’s broader cybersecurity strategy.

Why Third-Party Cybersecurity Risks Deserve Focus

Cybersecurity isn't just about firewalls and endpoints anymore. Attackers are increasingly targeting third-party vendors as a way to infiltrate businesses. This includes managed service providers, cloud software vendors, and outsourced departments—essentially any external group with system access or data privileges.

According to the 2024 CIRA Cybersecurity Survey, 44% of Canadian organizations experienced a cyber attack in the past 12 months. While not all were third-party related, the number highlights the rising pressure facing businesses to secure every layer of their environment, including vendors.

Common Third-Party Cybersecurity Risks

Data Breaches

Vendors that store sensitive data or access business systems can expose your company if their environments are breached. Weak password policies and poor login hygiene can escalate this risk quickly

Inconsistent Security Practices

Some vendors, especially smaller or offshore ones, may lack encryption, regular patching, or formal incident response plans. These gaps can leave your business vulnerable to ransomware or spyware.

Regulatory Non-compliance

If a vendor mishandles customer data or fails to meet Canadian standards, such as the Personal Information Protection and Electronic Documents Act (PIPEDA), your business could be held accountable. This is especially critical for regulated sectors such as legal, finance, and healthcare.

Best Practices to Reduce Vendor Cybersecurity Risk

Conduct Vendor Security Assessments

Before onboarding any vendor, review their cybersecurity posture. This should include requesting documentation on policies, certifications, and breach history. Reevaluate high-risk vendors annually.

Limit Access with Role-based Controls

Vendors should only have access to what’s essential. Implement multi-factor authentication, individual credentials, and a clear process for revoking access when contracts end or roles change.

Require Certifications and Reporting

Work with vendors that hold certifications such as SOC 2 or ISO 27001. For those that don’t, include clauses in service agreements that require incident notification and routine compliance updates.

Tip: Canon also offers Cybersecurity Training for internal teams tasked with vendor oversight.

Strengthen Your Business by Securing Your Vendor Network

For many organizations, vendor security isn’t about starting from scratch—it’s about building more structure into an existing process.

1. Create a Third-party Risk Framework: Maintain a centralized vendor list with risk levels, data access, and review dates. Assign internal owners for key supplier relationships and formalize evaluation criteria.
2. Implement Continuous Monitoring: Use tools to track vendor login patterns, connection attempts, or service changes. Canon’s Network Security Scan is one example of how to surface hidden threats linked to third-party systems.
3. Audit Compliance Responsibilities: Ensure third-party vendors align with Canadian privacy regulations. It is crucial to examine data compliance at both the provincial and national levels to verify that your business is on the right track.

Cybersecurity Starts with the Right Partnerships

Third-party vendors can help your business run smarter—but only when security is built into the relationship. Canadian SMBs can’t afford to treat vendor security as an afterthought. The costs of downtime, regulatory penalties, or reputational damage are too high.

By implementing structured risk management practices, working with credentialed vendors, and leveraging trusted partners like Canon Canada, you can close gaps without overwhelming your team. We deliver comprehensive managed IT solutions tailored for Canadian businesses, including those seeking to secure their vendor networks

Want to secure your vendor relationships? Discover how we can support your business, end-to-end.