Final answer:
A firm is mitigating Solution Risk by asking for a proof of concept to ensure the proposed solution meets requirements and integrates with existing systems before full commitment.
Step-by-step explanation:
By having a software vendor present a proof of concept, a firm is trying to mitigate Solution Risk. This type of risk refers to the uncertainties around whether a proposed solution will solve the identified problems or meet the specified requirements.
Presenting a proof of concept allows the firm to see the proposed solution in action, which can help assess its viability and effectiveness before fully committing to the vendor's product. It helps ensure that the product can be integrated with the firm's existing systems and that it can actually deliver on its promises, thus reducing the risk of adopting a solution that may not work as expected.