Vendor concentration refers to the reliance of an organization on a limited number of external technology providers or vendors for critical products or services. This dependency can increase cybersecurity risk, as a security incident or disruption affecting one vendor can have widespread consequences for all clients relying on that provider. High vendor concentration can lead to shared vulnerabilities, reduced negotiating power, and potential compliance issues. Organizations are encouraged to diversify their vendor portfolio and implement robust risk management strategies to mitigate the impact of vendor-related incidents and ensure business continuity.