Which statement provides the BEST example of the purpose of scoping in third party assessments?
Scoping is used to reduce the number of questions the vendor has to complete based on vendor “classification
Scoping is the process an outsourcer uses to configure a third party assessment based on the risk the vendor presents to the organization
Scoping is an assessment technique only used for high risk or critical vendors that require on-site assessments
Scoping is used primarily to limit the inclusion of supply chain vendors in third party assessments
Scoping is a critical step in third party assessments, as it determines the scope and depth of the assessment based on the inherent risk, impact, and complexity of the vendor relationship. Scoping helps to ensure that the assessment is relevant, efficient, and consistent with the outsourcer’s risk appetite and objectives. Scoping also helps to avoid over or under assessing the vendor, which could result in unnecessary costs, delays, or gaps in risk management. Scoping is not a one-time activity, but rather an ongoing process that should be reviewed and updated throughout the vendor lifecycle. Scoping should be aligned with the outsourcer’s third party risk management framework and policies, and follow the best practices and guidelines provided by the Shared Assessments Program and other industry standards. References:
A contract clause that enables each party to share the amount of information security risk is known as:
Limitation of liability
Cyber Insurance
Force majeure
Mutual indemnification
Indemnification is a contractual obligation by which one party agrees to compensate another party for any losses or damages that may arise from a specified event or circumstance. Mutual indemnification means that both parties agree to indemnify each other for certain losses or damages, such as those caused by a breach of contract, negligence, or violation of law. Mutual indemnification can enable each party to share the amount of information security risk, as it can provide a mechanism for allocating the responsibility and liability for any security incidents or breaches that may affect either party or their customers. Mutual indemnification can also incentivize each party to maintain adequate security controls and practices, as well as to cooperate and communicate effectively in the event of a security incident or breach.
The other options are not contract clauses that enable each party to share the amount of information security risk, because:
References:
An IT change management approval process includes all of the following components EXCEPT:
Application version control standards for software release updates
Documented audit trail for all emergency changes
Defined roles between business and IT functions
Guidelines that restrict approval of changes to only authorized personnel
Application version control standards for software release updates are not part of the IT change management approval process, but rather a technical aspect of the software development lifecycle. The IT change management approval process is a formal and structured way of evaluating, authorizing and scheduling changes to IT systems and infrastructure, based on predefined criteria and roles. The IT change management approval process typically includes the following components123:
You receive a call from a vendor that two laptops and a tablet are missing that were used to process your company data. The asset loss occurred two years ago, but was only recently discovered. That statement may indicate that this vendor is lacking an adequate:
Asset Management Program
Physical and Environmental Security Program
Data Loss Prevention Program
Information Security Incident Notification Policy
The scenario described indicates a lack in the vendor's Asset Management Program. An effective Asset Management Program includes maintaining an accurate inventory of hardware and devices, monitoring their status, and promptly identifying and responding to any losses or discrepancies. The failure to discover the loss of laptops and a tablet that processed company data for two years suggests deficiencies in tracking and managing physical assets. This lapse can lead to risks associated with data security, regulatory compliance, and operational integrity. A robust Asset Management Program should ensure that all assets are accounted for, their usage is monitored, and any anomalies or losses are quickly identified and addressed.
References:
Which of the following is NOT an attribute in the vendor inventory used to assign risk rating and vendor classification?
Type of data accessed, processed, or retained
Type of systems accessed
Type of contract addendum
Type of network connectivity
Vendor inventory is a list of all the third-party vendors that an organization engages with, along with relevant information about their products, services, contracts, and risks. Vendor inventory is a crucial tool for vendor risk management, as it helps an organization identify, assess, monitor, and mitigate the potential risks associated with its vendors. Vendor inventory also helps an organization prioritize its vendor oversight activities, allocate its resources efficiently, and comply with its regulatory obligations12.
One of the key steps in creating and maintaining a vendor inventory is to assign a risk rating and a vendor classification to each vendor, based on various attributes that reflect the level of risk and criticality they pose to the organization. The risk rating and vendor classification help an organization determine the frequency and depth of its vendor due diligence, review, and audit processes, as well as the appropriate controls and remediation actions to implement3 .
Some of the common attributes used to assign risk rating and vendor classification are :
The type of contract addendum is NOT an attribute used to assign risk rating and vendor classification, as it is not directly related to the risk or criticality of the vendor. The type of contract addendum is a legal document that modifies or supplements the original contract between the vendor and the organization, such as adding or deleting terms, clauses, or provisions. The type of contract addendum may reflect the changes or updates in the vendor relationship, such as scope, duration, price, service level, etc., but it does not indicate the level of risk or impact that the vendor has on the organization. Therefore, the type of contract addendum is not a relevant factor for vendor risk assessment and management . References:
You are updating program requirements due to shift in use of technologies by vendors to enable hybrid work. Which statement is LEAST likely to represent components of an Asset
Management Program?
Asset inventories should include connections to external parties, networks, or systems that process data
Each asset should include an organizational owner who is responsible for the asset throughout its life cycle
Assets should be classified based on criticality or data sensitivity
Asset inventories should track the flow or distribution of items used to fulfill products and Services across production lines
Asset management is the process of identifying, tracking, and managing the physical and digital assets of an organization. An asset management program is a set of policies, procedures, and tools that help to ensure the optimal use, security, and disposal of assets. According to the Shared Assessments CTPRP Study Guide1, an asset management program should include the following components:
The statement that is least likely to represent a component of an asset management program is D. Asset inventories should track the flow or distribution of items used to fulfill products and Services across production lines. This statement describes a supply chain management function, not an asset management function. Supply chain management is the process of planning, coordinating, and controlling the flow of materials, information, and services from suppliers to customers. Supply chain management may involve some aspects of asset management, such as inventory control, quality assurance, or vendor risk management, but it is not the same as asset management . Asset management focuses on the assets that the organization owns or uses, not the assets that the organization produces or delivers.
References:
Which statement is FALSE regarding background check requirements for vendors or service providers?
Background check requirements are not applicable for vendors or service providers based outside the United States
Background checks should be performed prior to employment and may be updated after employment based upon criteria in HR policies
Background check requirements should be applied to employees, contract workers and temporary workers
Background check requirements may differ based on level of authority, risk, or job role
Background check requirements are applicable for vendors or service providers based outside the United States, as well as those based within the country. According to the Shared Assessments Program, background checks are a key component of third-party risk management and should be conducted for all third parties that have access to sensitive data, systems, or facilities, regardless of their location1. The FCRA also applies to background checks performed by U.S. employers on foreign nationals who work outside the U.S. for a U.S. employer or its affiliates2. Therefore, statement A is false and the correct answer is A. References:
Which example of a response to external environmental factors is LEAST likely to be managed directly within the BCP or IT DR plan?
Protocols for social media channels and PR communication
Response to a natural or man-made disruption
Dependency on key employee or supplier issues
Response to a large scale illness or health outbreak
A BCP or IT DR plan is a set of procedures and actions that an organization takes to ensure the continuity and recovery of its critical business functions and IT systems in the event of a disruption. A BCP or IT DR plan typically covers the following aspects12:
Among the four examples of a response to external environmental factors, protocols for social media channels and PR communication are the least likely to be managed directly within the BCP or IT DR plan. This is because social media and PR communication are not critical business functions or IT systems that need to be restored or maintained during a disruption. They are rather supplementary tools that can be used to inform and engage with the public, customers, partners, and media about the organization’s situation and actions3. Therefore, protocols for social media and PR communication are more likely to be part of a crisis communication plan, which is a separate but related document that outlines the strategies and tactics for communicating with various audiences during a crisis.
The other three examples are more likely to be managed directly within the BCP or IT DR plan, as they directly affect the organization’s ability to perform its critical business functions and IT systems. For instance, a response to a natural or man-made disruption would involve activating the BCP or IT DR plan, assessing the impact and extent of the damage, deploying backup and recovery solutions, and restoring normal operations as soon as possible. A response to a dependency on key employee or supplier issues would involve identifying and managing the single points of failure, implementing contingency plans, and ensuring the availability and redundancy of essential skills and resources. A response to a large scale illness or health outbreak would involve implementing health and safety measures, enabling remote work arrangements, and ensuring the resilience and continuity of the workforce. References:
Your company has been alerted that an IT vendor began utilizing a subcontractor located in a country restricted by company policy. What is the BEST approach to handle this situation?
Notify management to approve an exception and ensure that contract provisions require prior “notification and evidence of subcontractor due diligence
inform the business unit and recommend that the company cease future work with the IT vendor due to company policy
Update the vender inventory with the mew location information in order to schedule a reassessment
Inform the business unit and ask the vendor to replace the subcontractor at their expense in “order to move the processing back to an approved country
This answer is the best approach because it aligns with the principles of third-party risk management, which include ensuring compliance with company policies, contractual obligations, and regulatory requirements. By asking the vendor to replace the subcontractor, the company is exercising its right to terminate or modify the relationship if the vendor fails to meet the agreed-upon standards or poses unacceptable risks. This also minimizes the potential impact of the vendor’s non-compliance on the company’s reputation, operations, and data security. The other options are less effective because they either ignore the issue, compromise the company’s policy, or rely on the vendor’s self-assessment without verification. References:
Which statement is NOT an accurate reflection of an organizations requirements within an enterprise information security policy?
Security policies should define the organizational structure and accountabilities for oversight
Security policies should have an effective date and date of last review by management
Security policies should be changed on an annual basis due to technology changes
Security policies should be organized based upon an accepted control framework
An enterprise information security policy (EISP) is a management-level document that details the organization’s philosophy, objectives, and expectations regarding information security. It sets the direction, scope, and tone for all security efforts and provides a framework for developing and implementing security programs and controls. According to the web search results from the search_web tool, some of the key elements of an EISP are:
However, option C, a statement that security policies should be changed on an annual basis due to technology changes, is not an accurate reflection of an organization’s requirements within an EISP. While technology changes may affect the security environment and the threats and vulnerabilities that the organization faces, they are not the only factor that determines the need for changing security policies. Other factors, such as business changes, legal changes, risk changes, audit findings, incident reports, and best practices, may also trigger the need for reviewing and updating security policies. Therefore, option C is the correct answer, as it is the only one that does not reflect an organization’s requirements within an EISP. References: The following resources support the verified answer and explanation:
Which statement provides the BEST description of inherent risk?
inherent risk is the amount of risk an organization can incur when there is an absence of controls
Inherent risk is the level of risk triggered by outsourcing & product or service
Inherent risk is the amount of risk an organization can accept based on their risk tolerance
Inherent risk is the level of risk that exists with all of the necessary controls in place
Inherent risk refers to the level of risk that exists in the absence of any controls or mitigation measures. It represents the natural exposure to risk in operations, transactions, or activities without considering the effectiveness of any risk management practices. In the context of Third-Party Risk Management (TPRM), inherent risk assesses the potential for loss or adverse outcomes associated with a third-party relationship before any controls or risk treatments are applied. Understanding inherent risk is crucial for organizations to identify where controls are necessary and to prioritize risk management efforts based on the potential impact and likelihood of different risks. This concept is foundational in risk management frameworks and is used to guide the development and implementation of controls to reduce risk to an acceptable level, aligned with the organization's risk appetite and tolerance.
References:
Which of the following indicators is LEAST likely to trigger a reassessment of an existing vendor?
Change in vendor location or use of new fourth parties
Change in scope of existing work (e.g., new data or system access)
Change in regulation that impacts service provider requirements
Change at outsourcer due to M&A
This answer is correct because a change at outsourcer due to merger and acquisition (M&A) is the least likely indicator to trigger a reassessment of an existing vendor. This is because the outsourcer is not the direct vendor of the organization, but rather a third party that the vendor uses to perform some of its services. Therefore, the impact of the change at the outsourcer on the vendor’s performance and risk level may not be significant or immediate. However, the other indicators (A, B, and C) are more likely to trigger a reassessment of an existing vendor, as they directly affect the vendor’s operations, capabilities, and compliance status. For example:
Which type of external event does NOT trigger an organization ta prompt a third party contract provisions review?
Change in company point of contact
Business continuity event
Data breach/privacy incident
Change in regulations
A change in company point of contact does not necessarily trigger an organization to prompt a third party contract provisions review, unless the contract specifically requires such a notification or approval. A change in company point of contact may affect the communication and relationship between the parties, but it does not affect the legal terms and obligations of the contract. However, other types of external events, such as business continuity events, data breaches/privacy incidents, and changes in regulations, may have a significant impact on the performance, compliance, and risk of the contract, and therefore may require a review of the contract provisions to ensure that they are still valid, enforceable, and aligned with the parties’ expectations and objectives. For example, a business continuity event may disrupt the delivery of goods or services, a data breach/privacy incident may expose confidential or personal information, and a change in regulations may impose new obligations or liabilities on the parties. These events may trigger clauses such as force majeure, termination, indemnification, or dispute resolution, and may require the parties to renegotiate or amend the contract accordingly. References:
Which set of procedures is typically NOT addressed within data privacy policies?
Procedures to limit access and disclosure of personal information to third parties
Procedures for handling data access requests from individuals
Procedures for configuration settings in identity access management
Procedures for incident reporting and notification
Data privacy policies are documents that outline how an organization collects, uses, stores, shares, and protects personal information from its customers, employees, partners, and other stakeholders1. Data privacy policies should address the following key elements2:
Procedures for configuration settings in identity access management are typically not addressed within data privacy policies, as they are more related to the technical and operational aspects of data security and access control. Identity access management (IAM) is a framework of policies, processes, and technologies that enable an organization to manage and verify the identities and access rights of its users and devices3. IAM configuration settings determine how users and devices are authenticated, authorized, and audited when accessing data and resources. IAM configuration settings should be aligned with the data privacy policies and principles, but they are not part of the data privacy policies themselves. IAM configuration settings should be documented and maintained separately from data privacy policies, and should be reviewed and updated regularly to ensure compliance and security. References: 1: What is a Data Privacy Policy? | OneTrust 2: Privacy Policy Checklist: What to Include in Your Privacy Policy 3: What is identity and access management? | IBM : [Identity and Access Management Configuration Settings] : [Why data privacy and third-party risk teams need to work … - OneTrust] : [Privacy Risk Management - ISACA] : [What Every Chief Privacy Officer Should Know About Third-Party Risk …]
Which capability is LEAST likely to be included in the annual testing activities for Business Continuity or Disaster Recovery plans?
Plans to enable technology and business operations to be resumed at a back-up site
Process to validate that specific databases can be accessed by applications at the designated location
Ability for business personnel to perform their functions at an alternate work space location
Require participation by third party service providers in collaboration with industry exercises
Business Continuity or Disaster Recovery (BC/DR) plans are designed to ensure the continuity of critical business functions and processes in the event of a disruption or disaster. BC/DR plans should include annual testing activities to validate the effectiveness and readiness of the plans, as well as to identify and address any gaps or weaknesses. Testing activities should cover the three main areas of BC/DR: people, processes, and technology12.
The four options given in the question represent different types of testing activities that may be included in the BC/DR plans. However, option D is the least likely to be included, as it is not a mandatory or common practice for most organizations. While it is beneficial to involve third party service providers in the BC/DR testing, as they may play a vital role in the recovery process, it is not a requirement or a standard for most industries. Third party service providers may have their own BC/DR plans and testing schedules, which may not align with the organization’s plans and objectives. Moreover, requiring their participation in industry exercises may pose challenges in terms of coordination, confidentiality, and cost34.
Therefore, option D is the correct answer, as it is the least likely to be included in the annual testing activities for BC/DR plans. The other options are more likely to be included, as they are essential for ensuring the availability and functionality of the technology, processes, and personnel that support the critical business operations. These options are:
References:
Which of the following is a positive aspect of adhering to a secure SDLC?
Promotes a “check the box" compliance approach
A process that defines and meets both the business requirements and the security requirements
A process that forces quality code repositories management
Enables the process if system code is managed in different IT silos
A secure SDLC is a framework that integrates security best practices and standards throughout the software development life cycle, from planning to deployment and maintenance. A secure SDLC aims to ensure that security is considered and implemented at every stage of the development process, not just as an afterthought or a compliance check. A secure SDLC can help organizations to achieve the following benefits12:
The BEST time in the SDLC process for an application service provider to perform Threat Modeling analysis is:
Before the application design and development activities begin
After the application vulnerability or penetration test is completed
After testing and before the deployment of the final code into production
Prior to the execution of a contract with each client
Threat modeling is a core element of the Microsoft Security Development Lifecycle (SDL) and a structured approach to identify, quantify, and address the security risks associated with an application12. Threat modeling helps to shape the application’s design, meet the security objectives, and reduce risk1. The best time to perform threat modeling analysis is before the application design and development activities begin, as this allows the application service provider to:
Upon completion of a third party assessment, a meeting should be scheduled with which
of the following resources prior to sharing findings with the vendor/service provider to
approve remediation plans:
CISO/CIO
Business Unit Relationship Owner
internal Audit
C&O
According to the Shared Assessments CTPRP Study Guide, the business unit relationship owner is the primary point of contact for the third party and is responsible for ensuring that the third party meets the contractual obligations and service level agreements. The business unit relationship owner is also involved in the third party risk assessment process and the remediation plan approval. Therefore, a meeting should be scheduled with the business unit relationship owner before sharing the findings and remediation plans with the third party, as they have the authority and accountability to approve or reject the plans. The other options are not necessarily involved in the remediation plan approval, although they may have other roles in the third party risk management lifecycle. References:
Which cloud deployment model is primarily used for load balancing?
Public Cloud
Community Cloud
Hybrid Cloud
Private Cloud
Hybrid cloud is the cloud deployment model that is primarily used for load balancing. Load balancing is the process of distributing workloads and network traffic across multiple servers or resources to optimize performance, reliability, and scalability1. Load balancing can help prevent overloading or underutilizing any single server or resource, as well as improve fault tolerance and availability. Hybrid cloud is a mix of two or more different deployment models, such as public cloud, private cloud, or community cloud2. Hybrid cloud allows organizations to leverage the benefits of both public and private clouds, such as cost efficiency, scalability, security, and control3. Hybrid cloud can also enable load balancing across different cloud environments, depending on the demand, cost, and performance requirements of each workload. For example, an organization can use a private cloud for sensitive or mission-critical applications that require high security and performance, and a public cloud for less sensitive or variable applications that require more scalability and flexibility. By using a hybrid cloud, the organization can balance the load between the private and public clouds, and optimize the resource utilization and cost efficiency of each cloud.
The other cloud deployment models are not primarily used for load balancing, although they may have some load balancing capabilities within their own environments. Public cloud is the infrastructure that is shared by multiple tenants and open to the public. Anyone can use the public cloud by subscribing to it. Public cloud offers high scalability, elasticity, and cost-effectiveness, but may have lower security, privacy, and control than private cloud2. Community cloud is the infrastructure that is shared by similar consumers who collaborate to set up a cloud for their exclusive use. For example, government organizations can form a cloud for their exclusive use. Community cloud offers some benefits of both public and private clouds, such as shared costs, common standards, and enhanced security, but may have lower scalability and flexibility than public cloud2. Private cloud is the infrastructure that is for the exclusive use of a single organization. The cloud may or may not be operated by the organization. Private cloud offers high security, privacy, and control, but may have lower scalability, elasticity, and cost-effectiveness than public cloud2. References:
Which action statement BEST describes an assessor calculating residual risk?
The assessor adjusts the vendor risk rating prior to reporting the findings to the business unit
The assessor adjusts the vendor risk rating based on changes to the risk level after analyzing the findings and mitigating controls
The business unit closes out the finding prior to the assessor submitting the final report
The assessor recommends implementing continuous monitoring for the next 18 months
When calculating residual risk, the best practice for an assessor is to adjust the vendor risk rating based on the changes to the risk level after analyzing the findings and considering the effectiveness of mitigating controls. Residual risk refers to the level of risk that remains after controls are applied to mitigate the initial (inherent) risk. By evaluating the findings from a third-party assessment and factoring in the mitigating controls implemented by the vendor, the assessor can more accurately determine the remaining risk level. This adjusted risk rating provides a more realistic view of the vendor's risk profile, aiding in informed decision-making regarding risk management and vendor oversight.
References:
During the contract negotiation process for a new vendor, the vendor states they have legal obligations to retain data for tax purposes. However, your company policy requires data
return or destruction at contract termination. Which statement provides the BEST approach to address this conflict?
Determine if a policy exception and approval is required, and require that data safeguarding obligations continue after termination
Change the risk rating of the vendor to reflect a higher risk tier
Insist the vendor adheres to the policy and contract provisions without exception
Conduct an assessment of the vendor's data governance and records management program
The best approach to address the conflict between the vendor’s legal obligations to retain data for tax purposes and the company’s policy to require data return or destruction at contract termination is A. Determine if a policy exception and approval is required, and require that data safeguarding obligations continue after termination. This approach recognizes that the vendor may have valid reasons to retain some data for a certain period of time, and that the company may have flexibility to grant exceptions to its policy under certain circumstances. However, this approach also ensures that the company maintains oversight and control over the data that the vendor retains, and that the vendor continues to comply with the data safeguarding obligations, such as encryption, access control, audit, and breach notification, until the data is returned or destroyed. This approach balances the interests and risks of both parties, and minimizes the potential for data breaches, misuse, or loss.
The other approaches are not the best ways to address the conflict, as they may create more problems or risks for either party. B. Change the risk rating of the vendor to reflect a higher risk tier. This approach does not resolve the conflict, but rather shifts the responsibility to the company to manage the increased risk of the vendor retaining the data. Changing the risk rating may also affect the contract terms, such as pricing, service level agreements, or liability clauses, and may require renegotiation or termination of the contract. C. Insist the vendor adheres to the policy and contract provisions without exception. This approach is too rigid and may not be feasible or reasonable for the vendor, especially if they have legal obligations to retain the data. This approach may also damage the relationship and trust between the parties, and may lead to disputes or litigation. D. Conduct an assessment of the vendor’s data governance and records management program. This approach is too time-consuming and costly, and may not be necessary or relevant for the conflict. Conducting an assessment may provide some assurance about the vendor’s data practices, but it does not address the underlying issue of the conflicting data retention requirements. Moreover, conducting an assessment may not be possible or appropriate during the contract negotiation process, as it may require access to the vendor’s systems, data, or personnel. References:
Which of the following is typically NOT included within the scape of an organization's network access policy?
Firewall settings
Unauthorized device detection
Website privacy consent banners
Remote access
A network access policy is a set of rules and conditions that define how authorized users and devices can access the network resources and services of an organization. It typically includes the following elements12:
Therefore, the correct answer is C. Website privacy consent banners, as they are typically not included within the scope of an organization’s network access policy. References:
Which statement is TRUE regarding a vendor's approach to Environmental, Social, and Governance (ESG) programs?
ESG expectations are driven by a company's executive team for internal commitments end not external entities
ESG requirements and programs may be directed by regulatory obligations or in response to company commitments
ESG commitments can only be measured qualitatively so it cannot be included in vendor due diligence standards
ESG obligations only apply to a company with publicly traded stocks
ESG programs are initiatives that aim to improve the environmental, social, and governance performance of a vendor or service provider. ESG programs may be driven by various factors, such as regulatory obligations, customer expectations, stakeholder pressure, industry standards, or company commitments. Therefore, statement B is true and the correct answer is B. Statement A is false because ESG expectations may come from external entities, such as regulators, investors, customers, or civil society. Statement C is false because ESG commitments can be measured both qualitatively and quantitatively, using indicators such as carbon emissions, diversity, ethics, or compliance. Statement D is false because ESG obligations may apply to any company, regardless of its size, ownership, or sector. References:
Minimum risk assessment standards for third party due diligence should be:
Set by each business unit based on the number of vendors to be assessed
Defined in the vendor/service provider contract or statement of work
Established by the TPRM program based on the company’s risk tolerance and risk appetite
Identified by procurement and required for all vendors and suppliers
According to the CTPRP Job Guide, the TPRM program should establish minimum risk assessment standards for third party due diligence based on the company’s risk tolerance and risk appetite. This means that the TPRM program should define the scope, depth, frequency, and methodology of the risk assessment process for different categories of third parties, taking into account the potential impact and likelihood of various risks. The risk assessment standards should be consistent, transparent, and aligned with the company’s strategic objectives and regulatory obligations. The TPRM program should also monitor and update the risk assessment standards as needed to reflect changes in the business environment, risk profile, and best practices. The other options are not correct because they do not reflect a holistic and risk-based approach to third party due diligence. Setting the standards by each business unit may result in inconsistency, duplication, or gaps in the risk assessment process. Defining the standards in the contract or statement of work may limit the flexibility and adaptability of the risk assessment process to changing circumstances. Identifying the standards by procurement may overlook the input and involvement of other stakeholders and functions in the risk assessment process. References:
Which statement reflects a requirement that is NOT typically found in a formal Information Security Incident Management Program?
The program includes the definition of internal escalation processes
The program includes protocols for disclosure of information to external parties
The program includes mechanisms for notification to clients
The program includes processes in support of disaster recovery
An Information Security Incident Management Program is a set of policies, procedures, and tools that enable an organization to prevent, detect, respond to, and recover from information security incidents. An information security incident is any event that compromises the confidentiality, integrity, or availability of information assets, systems, or services12. A formal Information Security Incident Management Program typically includes the following components12:
The statement that reflects a requirement that is NOT typically found in a formal Information Security Incident Management Program is D. The program includes processes in support of disaster recovery. While disaster recovery is an important aspect of information security, it is not a specific component of an Information Security Incident Management Program. Rather, it is a separate program that covers the broader scope of business continuity and resilience, and may involve other types of disasters besides information security incidents, such as natural disasters, power outages, or pandemics3 . Therefore, the correct answer is D. The program includes processes in support of disaster recovery. References: 1: Computer Security Incident Handling Guide 2: Develop and Implement a Security Incident Management Program 3: Business Continuity Management vs Disaster Recovery : What is the difference between disaster recovery and security incident response?
Which statement is FALSE regarding the foundational requirements of a well-defined third party risk management program?
We conduct onsite or virtual assessments for all third parties
We have defined senior and executive management accountabilities for oversight of our TPRM program
We have established vendor risk ratings and classifications based on a tiered hierarchy
We have established Management and Board-level reporting to enable risk-based decisionmaking
A well-defined third party risk management program does not require conducting onsite or virtual assessments for all third parties, as this would be impractical, costly, and inefficient. Instead, a TPRM program should adopt a risk-based approach to determine the frequency, scope, and depth of assessments based on the inherent and residual risks posed by each third party. This means that some third parties may require more frequent and comprehensive assessments than others, depending on factors such as the nature, scope, and criticality of their services, the sensitivity and volume of data they access or process, the regulatory and contractual obligations they must comply with, and the results of previous assessments and monitoring activities. A risk-based approach to assessments allows an organization to allocate its resources and efforts more effectively and efficiently, while also ensuring that the most significant risks are adequately addressed and mitigated. References:
Once a vendor questionnaire is received from a vendor what is the MOST important next step when evaluating the responses?
Document your analysis and provide confirmation to the business unit regarding receipt of the questionnaire
Update the vender risk registry and vendor inventory with the results in order to complete the assessment
Calculate the total number of findings to rate the effectiveness of the vendor response
Analyze the responses to identify adverse or high priority responses to prioritize controls that should be tested
The most important next step after receiving a vendor questionnaire is to analyze the responses and identify any gaps, issues, or risks that may pose a threat to the organization or its customers. This analysis should be based on the inherent risk profile of the vendor, the criticality of the service or product they provide, and the applicable regulatory and contractual requirements. The analysis should also highlight any adverse or high priority responses that indicate a lack of adequate controls, policies, or procedures on the vendor’s part. These responses should be prioritized for further validation, testing, or remediation. The analysis should also document any assumptions, limitations, or dependencies that may affect the accuracy or completeness of the vendor’s responses. References:
Which statement is TRUE regarding the onboarding process far new hires?
New employees and contractors should not be on-boarded until the results of applicant screening are approved
it is not necessary to have employees, contractors, and third party users sign confidentiality or non-disclosure agreements
All job roles should require employees to sign non-compete agreements
New employees and contactors can opt-out of having to attend security and privacy awareness training if they hold existing certifications
The onboarding process for new hires is a key part of the third-party risk management program, as it ensures that the right people are hired and trained to perform their roles effectively and securely. One of the best practices for onboarding new hires is to conduct applicant screening, which may include background checks, reference checks, verification of credentials, and assessment of skills and competencies. Applicant screening helps to identify and mitigate potential risks such as fraud, theft, corruption, or data breaches that may arise from hiring unqualified, dishonest, or malicious individuals. Therefore, it is important to wait for the results of applicant screening before onboarding new employees and contractors, as this can prevent costly and damaging incidents in the future.
The other statements are false regarding the onboarding process for new hires. It is necessary to have employees, contractors, and third-party users sign confidentiality or non-disclosure agreements, as this protects the company’s sensitive information and intellectual property from unauthorized disclosure or misuse. Non-compete agreements may not be required for all job roles, as they may limit the employee’s ability to work for other companies or in the same industry after leaving the current employer. They may also be subject to legal challenges depending on the jurisdiction and the scope of the agreement. Security and privacy awareness training is essential for all new employees and contractors, regardless of their existing certifications, as it educates them on the company’s policies, procedures, and standards for protecting data and systems from cyber threats. It also helps to foster a culture of security and compliance within the organization. References:
When updating TPRM vendor classification requirements with a focus on availability, which
risk rating factors provide the greatest impact to the analysis?
Type of data by classification; volume of records included in data processing
Financial viability of the vendor; ability to meet performance metrics
Network connectivity; remote access to applications
impact on operations and end users; impact on revenue; impact on regulatory compliance
TPRM vendor classification is the process of categorizing vendors based on their criticality, risk level, and service type. Vendor classification helps to prioritize and allocate resources for vendor assessment, monitoring, and remediation. Vendor classification should be updated periodically to reflect changes in the business environment, vendor performance, and regulatory requirements.
When updating TPRM vendor classification requirements with a focus on availability, the risk rating factors that provide the greatest impact to the analysis are the impact on operations and end users, the impact on revenue, and the impact on regulatory compliance. This is because:
Therefore, these three factors are the most important to consider when updating TPRM vendor classification requirements with a focus on availability, as they reflect the potential consequences and risks of vendor unavailability for the business.
References:
Which factor describes the concept of criticality of a service provider relationship when determining vendor classification?
Criticality is limited to only the set of vendors involved in providing disaster recovery services
Criticality is determined as all high risk vendors with access to personal information
Criticality is assigned to the subset of vendor relationships that pose the greatest impact due to their unavailability
Criticality is described as the set of vendors with remote access or network connectivity to company systems
Criticality is a measure of how essential a service provider is to the organization’s core business functions and objectives. It reflects the potential consequences of a service disruption or failure on the organization’s operations, reputation, compliance, and financial performance. Criticality is not the same as risk, which is the likelihood and severity of a negative event occurring. Criticality helps to prioritize the risk assessment and mitigation efforts for different service providers based on their relative importance to the organization. Criticality is not limited to a specific type of service, such as disaster recovery or personal information, nor is it determined by the mode of access or connectivity. Criticality is assigned to the service providers that have the greatest impact on the organization’s ability to deliver its products or services to its customers and stakeholders in a timely and satisfactory manner. References:
Which activity BEST describes conducting due diligence of a lower risk vendor?
Accepting a service providers self-assessment questionnaire responses
Preparing reports to management regarding the status of third party risk management and remediation activities
Reviewing a service provider's self-assessment questionnaire and external audit report(s)
Requesting and filing a service provider's external audit report(s) for future reference
Due diligence is the process of evaluating the risks and opportunities associated with a potential or existing third-party vendor. Due diligence can vary in scope and depth depending on the level of risk that the vendor poses to the organization. Lower risk vendors are those that have minimal impact on the organization’s operations, reputation, or compliance, and that do not handle sensitive or confidential data or systems. For lower risk vendors, conducting due diligence may involve accepting the service provider’s self-assessment questionnaire responses as sufficient evidence of their capabilities, performance, and compliance. A self-assessment questionnaire is a tool that allows the vendor to provide information about their organization, services, processes, controls, and policies. The organization can use the questionnaire to verify the vendor’s identity, qualifications, references, and certifications, and to assess the vendor’s alignment with the organization’s standards and expectations. Accepting the vendor’s self-assessment questionnaire responses as the primary source of due diligence can save time and resources for the organization, and can also demonstrate trust and confidence in the vendor. However, the organization should also ensure that the questionnaire is comprehensive, relevant, and updated, and that the vendor’s responses are accurate, complete, and consistent. The organization should also reserve the right to request additional information or documentation from the vendor if needed, and to conduct periodic reviews or audits of the vendor’s performance and compliance.
The other options do not best describe conducting due diligence of a lower risk vendor, because they either involve more extensive or rigorous methods of due diligence, or they are not directly related to due diligence. Preparing reports to management regarding the status of third party risk management and remediation activities is an important part of monitoring and managing the vendor relationship, but it is not a due diligence activity per se. Reviewing a service provider’s self-assessment questionnaire and external audit report(s) is a more thorough way of conducting due diligence, but it may not be necessary or feasible for lower risk vendors, especially if the external audit report(s) are not readily available or relevant. Requesting and filing a service provider’s external audit report(s) for future reference is a good practice for maintaining documentation and evidence of due diligence, but it is not a due diligence activity itself.
References:
Which statement is FALSE when describing the third party risk assessors’ role when conducting a controls evaluation using an industry framework?
The Assessor's role is to conduct discovery with subject matter experts to understand the control environment
The Assessor's role is to conduct discovery and validate responses from the risk assessment questionnaire by testing or validating controls
The Assessor's role is to provide an opinion on the effectiveness of controls conducted over a period of time in their report
The Assessor's role is to review compliance artifacts and identify potential control gaps based on evaluation of the presence of control attributes
According to the Shared Assessments Certified Third Party Risk Professional (CTPRP) Study Guide, the third party risk assessor’s role is to evaluate the design and operating effectiveness of the third party’s controls based on an industry framework, such as ISO, NIST, COBIT, or COSO1. The assessor’s role is not to provide an opinion on the effectiveness of controls, but rather to report the results of the evaluation in a factual and objective manner2. The assessor’s role is also to conduct discovery with subject matter experts to understand the control environment, to conduct discovery and validate responses from the risk assessment questionnaire by testing or validating controls, and to review compliance artifacts and identify potential control gaps based on evaluation of the presence of control attributes1. These are all true statements that describe the assessor’s role when conducting a controls evaluation using an industry framework.
References:
Which example is typically NOT included in a Business Impact Analysis (BIA)?
Including any contractual or legal/regulatory requirements
Prioritization of business functions and processes
Identifying the criticality of applications
Requiring vendor participation in testing
A Business Impact Analysis (BIA) is a process of determining the criticality of business activities and associated resource requirements to ensure operational resilience and continuity of operations during and after a business disruption1. A BIA is used to identify the potential impacts of disruptions on business processes, such as lost sales, delayed revenue, increased expenses, regulatory fines, or contractual penalties2. A BIA is not concerned with the probability or causes of disruptions, but rather with the effects and consequences of disruptions3. Therefore, a BIA typically does not include requiring vendor participation in testing, as this is a part of the business continuity and disaster recovery planning and implementation, not the impact analysis. Vendor participation in testing is important to validate the effectiveness and alignment of the vendor’s business continuity and disaster recovery plans with the organization’s objectives and expectations, but it is not a component of the BIA itself. References: 1: Using Business Impact Analysis to Inform Risk Prioritization and Response 2: Business Impact Analysis (BIA): Prepare for Anything [2024] • Asana 3: The Difference Between a Vendor’s BIA and Risk Analysis - Venminder : Best Practices Guidance for Third Party Risk
Which of the following factors is MOST important when assessing the risk of shadow IT in organizational security?
The organization maintains adequate policies and procedures that communicate required controls for security functions
The organization requires security training and certification for security personnel
The organization defines staffing levels to address impact of any turnover in security roles
The organization's resources and investment are sufficient to meet security requirements
Shadow IT is the use and management of any IT technologies, solutions, services, projects, and infrastructure without formal approval and support of internal IT departments. Shadow IT can pose significant security risks to the organization, such as data breaches, compliance violations, malware infections, or network disruptions. Therefore, assessing and mitigating the risk of shadow IT is an essential part of organizational security.
One of the most important factors when assessing the risk of shadow IT is whether the organization maintains adequate policies and procedures that communicate required controls for security functions. Policies and procedures are the documents that define the organization’s security objectives, standards, roles, responsibilities, and processes. They provide guidance and direction for the organization’s security activities, such as risk assessment, vendor management, incident response, data protection, access control, etc. They also establish the expectations and requirements for the organization’s employees, vendors, and other stakeholders regarding the use and management of IT resources.
By maintaining adequate policies and procedures that communicate required controls for security functions, the organization can:
By doing so, the organization can reduce the likelihood and impact of shadow IT, and increase the visibility and accountability of its IT environment. The organization can also foster a culture of security awareness and responsibility among its employees, vendors, and other stakeholders, and encourage them to report and resolve any shadow IT incidents or problems.
The other factors, such as the organization’s security training and certification, staffing levels, and resources and investment, are also relevant for assessing the risk of shadow IT, but they are not as important as the organization’s policies and procedures. Security training and certification can help the organization’s security personnel to acquire and maintain the necessary skills and knowledge to deal with shadow IT, but they do not address the root causes or motivations of shadow IT. Staffing levels can affect the organization’s ability to detect and respond to shadow IT, but they do not prevent or deter shadow IT from occurring. Resources and investment can enable the organization to provide adequate and appropriate IT resources to its employees, vendors, and other stakeholders, but they do not guarantee the satisfaction or compliance of those parties. References:
TESTED 05 Dec 2024