All businesses want to make processes easy and simple. But what should you do if you outsource tasks to a third party vendor? As helpful as their services are, contracting with a third party opens your company up to increased risks. Intellectual property or data theft could cause a huge monetary loss. Your company could be snared in a lawsuit or public scandal. A Kroll Fraud and Risk report found 1 out of 5 companies surveyed were victims of fraud from a vendor relationship.
If you are in the financial or heath care sectors, there are also guidelines to ensure compliance with laws and best practices. Companies must show they have done due diligence when hiring vendors. With a central policy in place, your business keeps a pulse on emerging risks from these relationships. The graphic below has a few key tips you can use to research vendors before you sign on the dotted line.
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