Which strategy will best mitigate risks associated with a new vendor's access to sensitive customer data?

Conducting a vendor viability assessment is a crucial strategy for mitigating risks associated with a new vendor's access to sensitive customer data. This process involves a thorough evaluation of the vendor's financial stability, reputation, past performance, and security practices. By assessing these factors, organizations can determine the likelihood that a vendor will responsibly manage sensitive data and uphold security protocols.

This evaluation helps identify potential risks, such as financial instability that could lead to inadequate support or breaches of contract regarding data protection. Understanding the vendor's security measures, compliance with regulations, and overall reliability can inform decisions about entering into a partnership and help establish necessary safeguards or additional requirements in the service agreement.

Implementing a vendor lock-in strategy, assessing the risk of a merger or acquisition of the vendor, and ensuring supply chain visibility are all important components of vendor management but may not specifically focus on the immediate risks associated with data security. While these strategies can contribute to a broader risk management framework, they do not directly address the critical aspects of evaluating a vendor's capability to protect sensitive customer information.