Vendors that support growth and efficiency can also create serious vulnerabilities.
Advanced tools also make scoring and reporting easier to understand. AI-powered risk models can highlight the most pressing threats, while visual dashboards, heatmaps and straightforward reports
help clients quickly see where the biggest risks lie. With this approach, TPRM becomes a repeatable, high-value service that offers both insight and strategic guidance.
Effective Workflow
A successful workflow usually starts with collecting all relevant vendor information, including contracts, policies, and other documentation, and sending out standardized questionnaires based on
industry frameworks. Once the data is in, MSPs review supporting evidence like encryption practices, access policies, and incident response protocols. Then, client-specific forms are used to
assess vendor responses against the client’s priorities and business impact. Vendors are scored and categorized by risk level, and those assessments are aligned with the client’s overall risk
posture. The final step is generating audit-ready reports and visual dashboards to make risks clear, with regular reassessments scheduled to track changes over time. This approach gives SMBs
insight almost immediately while keeping the process structured and manageable.
TPRM can also reveal other opportunities for MSPs and MSSPs. Vendor assessments often uncover unpatched software, weak access controls, or missing policies. Each of these gaps can lead to
projects like compliance consulting, contract review, or deploying additional cybersecurity solutions. By taking a proactive approach, service providers move from technical support to strategic
advisory, helping clients manage risk while strengthening their own relationships.
Proactive vendor risk management also builds trust. SMB clients often feel vulnerable when it comes to cyber threats, and having visibility into third-party risks provides reassurance. MSPs and
MSSPs that can clearly show vendor risk data and offer actionable recommendations position themselves as indispensable partners rather than just service providers.
Market Momentum and Growth
Analysts now agree that third-party risk is not just a problem for big companies. SMBs are firmly in the spotlight, and demand for accessible, scalable vendor risk management is growing quickly.
Research shows that the global TPRM market is expected to expand sharply in the next decade, driven by regulatory requirements, high-profile supply chain breaches, and customer expectations for
stronger due diligence.
For MSPs and MSSPs, this creates a dual opportunity to protect clients while growing profitably. Early adopters can gain a significant advantage in a market that is still underserved at the SMB
level. By offering streamlined TPRM services, service providers can meet client needs while positioning themselves as trusted, forward-looking advisors.
Why SMBs Can’t Ignore Third-Party Risk
The reality is clear - and here. Vendors that support growth and efficiency can also create serious vulnerabilities. Data breaches originating from third-party suppliers are often more damaging
than internal failures because they exploit trusted relationships that are overlooked. For SMBs, these breaches can lead to lost revenue, reputational harm, and regulatory penalties, all of which
can be devastating for smaller organizations.
As SMBs grow, their vendor ecosystems become more complex. What might have started as a single cloud application or outsourced service can quickly turn into dozens of vendors handling payroll,
customer data, IT support, marketing, and more. Without a systematic approach to vendor risk management, SMBs are blind to threats that can compromise their operations.
This is the call to understand how third-party risk has become the hidden cybersecurity weakness for SMBs. Vendors, contractors, and service providers that are a value add as they drive growth
and efficiency can also introduce vulnerabilities. And the catch is that most SMBs lack the resources to manage this risk themselves, but MSPs and MSSPs can fill the gap. By integrating TPRM into
their offerings with standardized workflows, centralized vendor management, and scalable reporting, service providers can deliver a solution that is practical and profitable.
This allows SMBs to have the confidence they need, knowing that their operations and customer relationships are not compromised by the partners they rely on. Beyond reducing risk, TPRM enables
service providers to become strategic advisors, uncovering gaps to shine a light on solutions while strengthening client trust. For SMBs and the MSPs that serve them, embracing third-party risk
management is no longer optional - it’s essential for growth, security, and resilience in a digital world where vulnerabilities can appear when least expected.
