Vendor risk for startups: questions worth asking

Your payment processor, CRM, and AI tools all process something valuable. “They seem big” is not a control.

Lightweight diligence

  • Read where data is stored and whether it’s used to train models
  • Check MFA/SSO support
  • Ask how access is revoked and how breaches are disclosed
  • Prefer vendors who let you export and delete data

Contracts and reality

You may not renegotiate AWS, but for smaller tools you can ask for a DPA, clarify subprocessors, and limit data shared to what’s necessary.

Ongoing hygiene

Keep a vendor list. When you stop using a tool, delete the tenant—not just the bookmark.

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