Fourth-Party Risk: When Your Vendor's Vendor Owns Your Customer's Incident
Your contract is with the model provider. Your runbook handles the case where that provider is degraded. Your status page subscription pages you when their dashboard turns yellow. You feel covered. Then one Wednesday afternoon the underlying cloud region your provider runs in starts brownouts, your provider's failover region is also affected because they consolidated capacity to control unit economics, and your product is half-down for ninety minutes because of a vendor decision two layers upstream from any contract you signed.
The customer postmortem request lands in your inbox the next morning. They want a root cause. The root cause lives in a layer your status page cannot see and your contract does not let you compel. That layer is what fourth-party risk actually is — not a procurement checkbox, but a silent dependency tier that propagates failures upward with attenuation but not absorption.
