What type of risk focuses on the strategic viability of a vendor?

The correct answer is strategic risk, as this type of risk is directly related to the long-term decisions and strategies of an organization, which includes the evaluation of vendors and their alignment with the organization’s goals. When assessing a vendor, it is crucial to consider how their performance or potential instability could impact the organization’s strategic objectives. Vendor viability can affect operational capacity, market position, and competitive advantage, making it a core concern of strategic risk management.

In this context, operational risk typically pertains to the internal processes and day-to-day operations within an organization rather than external vendor factors. Compliance risk focuses on the adherence to laws, regulations, and company policies, which, while important, does not specifically address the strategic evaluation of vendor relationships. Financial risk is concerned with the implications of financial loss and market fluctuations, rather than the vendor's fit within the strategic framework of the organization. Thus, understanding vendor viability falls squarely within the realm of strategic risk, making it the most relevant answer.