What is the least important factor for the company to consider when selecting the vendor?

A large online bookseller decides to contract with a vendor to manage Personal Information (PI).

What is the least important factor for the company to consider when selecting the vendor?
A . The vendor’s reputation
B . The vendor’s financial health
C . The vendor’s employee retention rates
D . The vendor’s employee training program

View Answer

Answer: C

Explanation:

While it is important for a company to consider the reputation and financial health of a vendor, as well as their employee training program, the retention rates of the vendor’s employees are not a direct indicator of the vendor’s ability to protect personal information. It is important for the company to ensure that the vendor has appropriate security measures in place to protect personal information, such as access controls, encryption, and data breach response procedures. The company should also consider the vendor’s compliance with applicable privacy and data protection laws, as well as their experience working with sensitive personal information. Overall, while employee retention rates may indirectly reflect the quality of the vendor’s services, they are not a direct factor in assessing the vendor’s ability to manage personal information.