Vendor management tips: selecting the right vendors and properly managing vendor relationships can help protect your company from damages and long-term losses.

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As more work is outsourced to specialized vendors, companies face greater exposure to fraud, security breaches and the possibility of financial losses. When companies outsource, they are still responsible for protecting sensitive information belonging to customers and the company Consider these tips:

* Invite many vendors to participate in the request for proposals (RFP). Prepare an RFP that covers the majority of business concerns while setting expectations for the vendor from a legal perspective. The RFP often forms the basis of the contract. Vendors with the most flexible terms and highest desire will bubble up to the short list.

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