Vendor management always involves a certain degree of risk, whether financial, operational, or reputational. From a financial point of view, you want to find vendors whose solvency is not at risk, as this can lead to financial losses. From an operational point of view, one wants to minimize the risk of deterioration in service or product. Reputationally, the relationship with vendors involves the possibility of a damaged reputation, for example through child labor. To keep these risks as low as possible, it is necessary to analyze the potential vendor when selecting it. In thi ssession you will learn,

• How can we keep vendor risk and possible consequences, whether financial or reputational, operational, as low as possible for us?
• How can we vet our vendors before entering a business relationship to keep our risks as low as possible?
• How can we find the vendor with the lowest risk for us in a competitive landscape?