“You Can’t Outsource the Risk, But You Can Outsource the Blame” – A Hard Truth for Organisations

As organisations grow, so does their reliance on third-party vendors for critical services – IT, security, cloud operations, and more. Outsourcing has become the norm. But here’s the hard truth: while you can outsource the work, you can’t outsource the risk.

Let’s be clear: accountability stays with you.

The Illusion of Outsourced Security

Many organisations believe outsourcing cybersecurity functions or data management will reduce their exposure to risks. In reality, it often shifts the focus away from internal responsibilities, leading to vulnerabilities. When a breach happens, the blame game starts, but guess who ultimately pays the price? The organisation—not the vendor.

Therefore, when you hand over your data, your IT infrastructure, or your customer service to an external vendor, you are not transferring the inherent risks that come with them. You are simply sharing the responsibility.

Third-Party Risk is Still YOUR Risk

Here’s the catch—when a vendor fails to protect your data, it’s still your brand, reputation, and bottom line on the line. And while you may be able to shift the legal or financial consequences through contracts, the impact on trust and business continuity remains firmly in your court. The consequences land squarely on YOUR shoulders.

What Should You Do?

1. Set Clear Expectations: Make sure that all third-party providers understand your security policies and integrate them into their operations.
2. Crystal Clear Contracts: Ensure your contracts specify who is accountable for what. Outline security requirements, incident response protocols, and potential liabilities.
3. Continuous Monitoring: Don’t just trust their certifications and compliance reports—conduct regular audits and insist on transparency. Think of it as your ongoing relationship check-up.
4. Shared Responsibility Model: Security is a partnership. Even in the cloud, understanding the shared responsibility model is critical – where the provider’s duties end, and yours begin.
5. Have a Strong Incident Response Plan: Plan for the worst. If something goes wrong, be ready to act swiftly. A coordinated response can make all the difference in managing the fallout.

Blame Won’t Protect You

At the end of the day, outsourcing blame doesn’t safeguard your organisation. Proactive risk management does. By owning the risks, even when partnering with third parties, you can strengthen your security posture and protect your business from unnecessary exposure.

Have you experienced challenges with third-party risk? How do you ensure vendors uphold your security standards?