How to Safely Evaluate Third Party Apps (API)

Businesses depend on a growing web of many third party apps to handle customer service, reporting, communication, payments, and other everyday operations. These tools bring real convenience, yet each integration adds a new point where vulnerabilities can surface. In 2024, more than one third of recorded breaches were tied to issues in a vendor’s environment, which shows how often risk enters through someone else’s system rather than your own.

The goal is not to avoid third party tools. They are a practical necessity for organizations that want to stay efficient and avoid rebuilding functions that already exist. The real challenge is understanding where hidden risks appear and how to check an app before it becomes part of your infrastructure. This guide walks through those concerns and offers a clear checklist you can use when evaluating any external tool.

Why Third Party Apps Matter for Small and Mid-Sized Organizations

Most organizations rely on these outside apps because they save time, reduce internal development costs, and make it easier to access features that would otherwise take months to build. Everything from billing systems to customer communication platforms runs through APIs, and these integrations help teams work more efficiently without reinventing existing technology.

For small and mid-sized businesses or municipalities with limited internal IT resources, these tools are especially important. They fill gaps, simplify workflows, and support modernization efforts without major upfront investment. When the right tools are selected and managed carefully, they strengthen reliability and help your staff stay productive.

Where Hidden Risks Appear in Third Party Integrations

Adding an app to your environment introduces a shared responsibility. Your security controls depend on the vendor’s design, maintenance habits, and handling of your data. If something goes wrong on their end, the impact still reaches your business.

Security Concerns

A vulnerable plugin or poorly built integration can create an opening for unauthorized access. It may not seem harmful at first glance, but a single weakness in a vendor’s code can give attackers a path into your environment. Once that happens, they can move laterally, disrupt systems, or gather sensitive information with surprising speed.

Many incidents begin with something simple, such as an unpatched library or a credential that was never rotated. These issues are easy to overlook, yet they remain a common source of breaches.

Privacy and Compliance Risks

Third party apps often handle sensitive information, from employee records to customer data. Even when contracts attempt to limit how a vendor can use that data, improper storage or reuse can still occur. A vendor might store data in another country, analyze it for a purpose you never intended, or share it with additional partners.

When this happens, your organization is still responsible for meeting privacy regulations. A misstep in the vendor’s environment can lead to legal exposure and long-term reputational harm.

Operational and Financial Impact

API performance matters. If a service slows down or fails, your workflows may stall. Customer-facing tools might time out. Automated processes can stop mid-stream. These disruptions cost time, and depending on the system involved, they can also create financial loss.

If an attacker gains access through a weak integration, the financial consequences can escalate quickly. Even simple risks, such as outdated credentials or weak permission settings, can create openings that place both data and budget at risk.

10 Top Tips for Reviewing Any Third Party App

Before you connect a new tool, take time to understand how it handles data, security, and operational stability. You do not need deep technical knowledge to begin this evaluation. You only need clear questions and a consistent process.

Below is a checklist you can use during your vendor assessments. It keeps the conversation focused and helps you spot warning signs early.

1. Security Credentials and Certifications
   Ask whether the vendor maintains recognized certifications such as SOC 2 or ISO 27001. Review any available audit reports. A vendor that invests in regular assessments shows a commitment to managing risk responsibly.
2. Data Encryption Practices
   Confirm how the vendor encrypts data during transfer and storage. Look for strong protocols such as TLS 1.3 for data in transit. If the vendor cannot clearly explain their encryption framework, that is an indicator you need to look more closely.
3. Authentication and Access Controls
   A modern app should follow current standards like OAuth2 or OpenID Connect. Access should follow the principle of least privilege, with short-lived tokens, credential rotation, and defined permission rules.
4. Monitoring and Threat Detection
   Ask how the vendor tracks activity, logs events, and responds to unusual behavior. Strong detection programs demonstrate that the vendor is watching for issues instead of reacting after the fact.
5. Versioning and Retirement Policies
   APIs evolve. A reliable vendor communicates version updates clearly, supports transitions, and avoids sudden deprecations that can break your workflows.
6. Rate Limits and Usage Controls
   Confirm that the provider includes reasonable throttling or request limits. These safeguards prevent unexpected overloads and protect both sides of the integration.
7. Audit Rights and Contract Terms
   Your agreement should allow you to review security practices or request documentation. Contracts that limit visibility make it difficult to validate that the vendor is meeting expectations.
8. Data Location and Jurisdiction
   Know where your information lives. Data stored in certain regions may fall under different regulations, so it is important to confirm compliance before onboarding the tool.
9. Failover and Resilience Planning
   Downtime happens. Ask how the vendor handles outages, backups, and recovery. Their answers should give you confidence that your operations will not stall unexpectedly.
10. Dependencies and Supply Chain Awareness
    Many apps rely on open-source libraries or additional services. Request a list of key dependencies and confirm that the vendor tracks and updates them. Vulnerabilities often start in these supporting components.

Why Ongoing Vendor Review Matters

Integrating a third party app is not a one-time event. Business needs shift, systems expand, and vendors update their environments. A responsible review process should continue after onboarding, with periodic checks to confirm that the vendor still meets your operational and security expectations.

Regular monitoring helps you catch issues early and maintain a consistent standard across your entire technology stack. It also creates a healthier partnership with vendors, because expectations stay clear on both sides.

A Steady Approach to Safer Integrations

No system is risk-free, but thoughtful evaluation goes a long way. When you combine structured vetting, regular review, and clear communication, you strengthen your entire environment. The goal is not to discourage the use of helpful apps. Instead, it is to make sure each tool supports your business rather than introducing avoidable problems.

Organizations that take this steady, people-centered approach gain confidence in their technology, reduce disruptions, and create a safer foundation for growth.

If you want guidance on building a stronger evaluation process or reviewing the tools already in your environment, our team is here to help. We work closely with businesses, nonprofits, and local governments to design secure, well-managed systems that support long-term goals.

Quick Answers

What is the biggest risk to consider with any third party apps?
Most issues begin with a vendor’s internal vulnerability. Even a minor flaw in an API can create a path into your systems if not managed carefully. Reviewing a vendor’s security posture helps reduce this risk.

How often should we review the third party apps that we already use?
A yearly review is a healthy baseline for most organizations, but critical tools may need more frequent checks. Regular monitoring gives you confidence that your environment remains protected as vendors update their services.

How can small teams manage these evaluations without extra staff?
Start with a simple checklist and focus on the highest-risk tools first. Many vendors provide documentation that answers most questions. A trusted IT partner can also help you review and interpret the details.

At Keystone, we don’t just manage IT, we execute. We ensure smooth transitions, rock solid security, and maximum efficiency so your business can thrive. Let us handle the complexity of IT while you stay focused on what matters most, growing your business. Contact us today to schedule a consultation and see how Keystone delivers results you can trust.