In today’s interconnected world, businesses rely more than ever on third-party vendors for critical operations. However, with increasing cyber threats, regulatory pressure, and financial risks, failing to implement a robust Third-Party Risk Management (TPRM) strategy can be devastating.
In 2025, European companies are facing multi-million euro fines due to vendor-related breaches, while outdated and manual TPRM processes continue to drain time, money, and security resources.
The Price of Poor TPRM: Real Cases from Europe
The consequences of inadequate vendor risk management are no longer theoretical. Here’s a look at recent high-profile breaches that underscore the financial, operational, and reputational risks of failing to manage third-party security.
1. Capita Data Breach (UK, 2023) – £20 Million Fine
Capita, a major outsourcing provider, suffered a cyberattack exposing government and private-sector data. Due to poor vendor security controls, the UK’s Information Commissioner’s Office (ICO) imposed a £20 million fine under GDPR for failing to ensure vendor compliance with data protection standards.
2. Italian Healthcare Ransomware Attack (2023) – €5 Million Fine
A ransomware attack targeting a third-party IT vendor servicing Italian healthcare providers led to the exposure of thousands of patient records. The affected institutions were fined €5 million under GDPR for failing to properly assess and monitor their vendor’s security posture.
3. German Manufacturing Breach (2024) – €8 Million Fine
A German manufacturer faced weeks of supply chain disruption after a third-party breach impacted its IT infrastructure. Regulators issued an €8 million fine under NIS2, citing insufficient vendor risk assessments and lack of real-time monitoring.
4. MOVEit Supply Chain Attack (EU-Wide, 2023) – €10 Million+ Fine
A zero-day vulnerability in the MOVEit file transfer service resulted in breaches across Europe. A French financial services firm was fined €10 million under DORA for failing to conduct proper vendor security assessments, leading to the exposure of sensitive client data.
5. British Airways GDPR Fine (2023) – €22 Million Fine
While not strictly a TPRM failure, British Airways was fined €22 million under GDPR after hackers exploited a third-party vulnerability to access customer payment information. This case highlights the need for strong vendor security controls.
The Hidden Costs of Poor TPRM
Beyond regulatory fines, businesses suffer from hidden costs that can be just as damaging:
Operational Downtime – Vendor-related cyber incidents disrupt business operations and result in revenue losses.
Legal Liabilities – Companies face lawsuits from affected customers and stakeholders.
Reputational Damage – Publicized breaches erode customer trust and impact long-term revenue.
Inefficiency of Manual TPRM – Many organizations still rely on spreadsheets and manual reviews, leading to delays, human errors, and inconsistent risk assessments.
Regulatory Pressure: What European Businesses Must Know
With new regulations like DORA, NIS2, and evolving GDPR enforcement, organizations can no longer afford to ignore vendor risks.
GDPR – Fines up to €20 million or 4% of global turnover for data protection failures, including third-party mishandling.
DORA (Digital Operational Resilience Act) – Financial institutions face strict ICT risk management requirements with penalties for poor vendor oversight.
NIS2 (EU Cybersecurity Directive) – Expands cybersecurity accountability across sectors like healthcare, energy, and telecom, with fines up to €10 million or 2% of turnover.
The Case for AI-Driven TPRM: Why Prevaia is the Solution
Traditional TPRM methods fail to keep pace with today’s risk landscape. That’s why Prevaia provides an AI-powered TPRM platform designed to eliminate inefficiencies, reduce risks, and ensure compliance.
✔ Real-Time Compliance Monitoring – Stay aligned with GDPR, DORA, NIS2, and other frameworks.
✔ Automated Risk Assessments – Identify vulnerabilities before they escalate into costly breaches.
✔ Audit-Ready Reporting – Simplify regulatory audits with detailed compliance reports.
✔ Dark Web Monitoring – Detect and respond to vendor-related data breaches proactively.
✔ Scalability & Cost Efficiency – Manage thousands of vendors seamlessly and cost-effectively.
Conclusion: Take Control of Your Third-Party Risk Before It’s Too Late
In 2025, vendor security failures are costing European businesses millions, but these losses are entirely preventable. With Prevaia’s AI-powered TPRM solution, companies can stay ahead of risks, ensure compliance, and protect their reputation.
Discover Prevaia Today. Don’t let vendor vulnerabilities put your business at risk. Schedule a demo now.