Why Your Business Should Care About Third-Party Software Risks

Most businesses today use software made by other companies to help them run smoothly. These are called third-party tools: things like email services, online stores, or customer support systems. Using them saves time and money. But here’s the thing: every time you connect your business to one of these tools, you’re also trusting them with your data. If something goes wrong on their end, it can cause big problems for you, too. That’s why it’s important to understand the risks and take steps to stay safe, even if the software isn’t made by your company.

^{This may interest you: Guardians of The Internet: Cybersecurity For Business Leaders}

Every Tool You Use Can Be a Doorway

When you connect a third-party tool to your business, you’re opening a kind of digital door. That door can be really helpful. It lets you do things faster, like track sales or talk to customers. But if someone breaks into that tool, they might get through the door and into your business, too. Even if your own systems are secure, you’re only as safe as the tools you use. That’s why it’s smart to ask questions before choosing software. Do they protect your data? Do they have a plan if something goes wrong?

Big Names Still Have Problems

Just because a software company is famous doesn’t mean it’s completely safe. In fact, big tools are often bigger targets for hackers. The more popular the tool, the more people try to break into it. Some businesses trust big-name tools without thinking twice, but you shouldn’t assume they’re perfect. Instead, do a little digging. Ask how they handle problems, how often they update their system, and how they tell customers if something bad happens. It’s better to ask now than to find out later, after your data has been leaked.

Some Risks Are Hard to See

Not all dangers are obvious. Sometimes, the problem comes from how different tools connect behind the scenes. These links, called integrations, can let your data move from one tool to another. That’s helpful, but it can also open up new weak spots. For example, if you use a tool that relies on artificial intelligence (AI), you also need to think about AI security. This means making sure the smart systems you use are protected from being hacked or used in the wrong way. If your software company doesn’t take this seriously, your data might be at risk.

^{Supplementary reading: What Leaders Can Do For Their Business During A Cybersecurity Breach}

You’re Still Responsible If Things Go Wrong

Here’s something many businesses don’t realise: even if a third-party tool makes the mistake, you might still get blamed. There are privacy laws that say companies must protect customer information. So if your software provider has a problem, your business could face fines, or worse, lose customers’ trust. That’s why it’s important to read the contracts, understand what each tool is doing with your data, and check in regularly. It might seem like a lot of work, but it protects your business in the long run.

Stay Safe Without Stopping Progress

Don’t worry: you don’t have to give up using helpful tools. You just need to use them wisely. Make a list of all the software you depend on, especially anything that has access to customer information or private files. Talk with your tech team before adding new tools. And stay alert: sign up for updates or alerts if a tool you use has a security problem. Being careful with third-party software doesn’t slow you down. In fact, it helps you grow your business with fewer surprises and more confidence.

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