Final answer:
The main issue with inaccurate vendor master data is the potential compromise of data quality and reliability, which is fundamental for efficient operations and compliance. It affects financial reporting, exposes the company to fraud and can lead to supply chain inefficiencies.
Step-by-step explanation:
The primary concern associated with "Exp. Risk: Vendor master data is inaccurate" is B) Data quality and reliability. Inaccurate vendor master data can lead to a multitude of problems such as incorrect payments, inefficiencies in supply chain management, and potential breaches of contract. All these issues are tied to the core need for reliable data to guide business decisions and operations.
Inaccurate data in vendor master files can result in erroneous financial reporting and might also expose the company to fraud and compliance risks. Ensuring data quality and reliability is essential for operational efficiency, regulatory compliance, and informed decision-making within an organization. Consequently, businesses usually implement robust data management and quality assurance practices to maintain accurate vendor information.