Organizations should consider a variety of different risk factors when assessing their vendors, such as financial stability, operational capacities, legal liabilities, and other associated risks. Companies should also evaluate the security measures in place to protect the data and technology systems used by vendors. Additionally, organizations should also assess the vendor’s ability to meet customer service requirements, comply with industry regulations and standards, and adhere to data privacy policies. Lastly, companies should assess any potential regulatory or compliance risks associated with their external relationships.