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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:
Which type of contract termination is MOST likely to occur after failure to remediate assessment findings?
Regulatory/supervisory termination
Termination for convenience
Normal termination
Termination for cause
Termination for cause is the type of contract termination that is most likely to occur after failure to remediate assessment findings. This is because termination for cause is based on a breach of contract by the third-party, such as non-compliance, poor performance, fraud, or misconduct. Failure to remediate assessment findings indicates that the third-party has not met the contractual obligations or expectations of the entity, and thus exposes the entity to increased risk and liability. Termination for cause allows the entity to end the contract immediately or after a notice period, and to seek damages or remedies from the third-party. Termination for cause is different from other types of contract termination, such as:
The primary disadvantage of Single Sign-On (SSO) access control is:
The impact of a compromise of the end-user credential that provides access to multiple systems is greater
A single password is easier to guess and be exploited
Users store multiple passwords in a single repository limiting the ability to change the password
Vendors must develop multiple methods to integrate system access adding cost and complexity
Single Sign-On (SSO) is a convenient and efficient way of authenticating users across multiple applications and platforms with a single set of credentials. However, it also poses some security risks and challenges that need to be considered and addressed. One of the main disadvantages of SSO is that it creates a single point of failure and a high-value target for attackers. If an end-user credential is compromised, the attacker can gain access to all the systems and resources that the user is authorized to access, potentially causing significant damage and data breaches. Therefore, SSO requires strong security measures to protect the user credentials, such as encryption, multifactor authentication, password policies, and monitoring. Additionally, SSO users need to be aware of the risks and follow best practices to safeguard their credentials, such as using strong and unique passwords, changing them regularly, and avoiding phishing and social engineering attacks. References:
Which TPRM risk assessment component would typically NOT be maintained in a Risk Register?
An assessment of the impact and likelihood the risk will occur and the possible seriousness
Vendor inventory of all suppliers, vendors, and service providers prioritized by contract value
An outline of proposed mitigation actions and assignment of risk owner
A grading of each risk according to a risk assessment table or hierarchy
A risk register is a tool that records and tracks the identified risks, their probability, impact, status, and mitigation actions throughout the life cycle of a third-party relationship1. A risk register typically includes the following components2:
Which policy requirement is typically NOT defined in an Asset Management program?
The Policy states requirements for the reuse of physical media (e.9., devices, servers, disk drives, etc.)
The Policy requires that employees and contractors return all company data and assets upon termination of their employment, contract or agreement
The Policy defines requirements for the inventory, identification, and disposal of equipment “and/or physical media
The Policy requires visitors (including other tenants and maintenance personnel) to sign-in and sign-out of the facility, and to be escorted at all times
An Asset Management program is a set of policies, procedures, and practices that aim to optimize the value, performance, and lifecycle of the organization’s assets, such as physical, financial, human, or information assets123. An Asset Management program typically defines policy requirements for the following aspects of asset management:
However, option D, a policy requirement that requires visitors (including other tenants and maintenance personnel) to sign-in and sign-out of the facility, and to be escorted at all times, is typically not defined in an Asset Management program. Rather, this requirement is more likely to be defined in a Physical Security program, which is a set of policies, procedures, and practices that aim to protect the organization’s premises, assets, and personnel from unauthorized access, damage, or harm . A Physical Security program typically defines policy requirements for the following aspects of physical security:
Therefore, option D is the correct answer, as it is the only one that does not reflect a policy requirement that is typically defined in an Asset Management program. References: The following resources support the verified answer and explanation:
Which statement BEST reflects the factors that help you determine the frequency of cyclical assessments?
Vendor assessments should be conducted during onboarding and then be replaced by continuous monitoring
Vendor assessment frequency should be based on the level of risk and criticality of the vendor to your operations as determined by their vendor risk score
Vendor assessments should be scheduled based on the type of services/products provided
Vendor assessment frequency may need to be changed if the vendor has disclosed a data breach
The frequency of cyclical assessments is one of the key factors that determines the effectiveness and efficiency of a TPRM program. Cyclical assessments are periodic reviews of the vendor’s performance, compliance, and risk posture that are conducted after the initial onboarding assessment. The frequency of cyclical assessments should be aligned with the organization’s risk appetite and tolerance, and should reflect the level of risk and criticality of the vendor to the organization’s operations. A common approach to determine the frequency of cyclical assessments is to use a vendor risk score, which is a numerical value that represents the vendor’s inherent and residual risk based on various criteria, such as the type, scope, and complexity of the services or products provided, the vendor’s security and privacy controls, the vendor’s compliance with relevant regulations and standards, the vendor’s past performance and incident history, and the vendor’s business continuity and disaster recovery capabilities. The vendor risk score can be used to categorize the vendors into different risk tiers, such as high, medium, and low, and assign appropriate frequencies for cyclical assessments, such as annually, biannually, or quarterly. For example, a high-risk vendor may require an annual assessment, while a low-risk vendor may require a biannual or quarterly assessment. The vendor risk score and the frequency of cyclical assessments should be reviewed and updated regularly to account for any changes in the vendor’s risk profile or the organization’s risk appetite.
The other three statements do not best reflect the factors that help you determine the frequency of cyclical assessments, as they are either too rigid, too vague, or too reactive. Statement A implies that vendor assessments are only necessary during onboarding and can be replaced by continuous monitoring afterwards. However, continuous monitoring alone is not sufficient to ensure the vendor’s compliance and risk management, as it may not capture all the aspects of the vendor’s performance and risk posture, such as contractual obligations, service level agreements, audit results, and remediation actions. Therefore, vendor assessments should be conducted during onboarding and at regular intervals thereafter, complemented by continuous monitoring. Statement C suggests that vendor assessments should be scheduled based on the type of services or products provided, without considering the other factors that may affect the vendor’s risk level and criticality, such as the vendor’s security and privacy controls, the vendor’s compliance with relevant regulations and standards, the vendor’s past performance and incident history, and the vendor’s business continuity and disaster recovery capabilities. Therefore, statement C is too vague and does not provide a clear and consistent basis for determining the frequency of cyclical assessments. Statement D indicates that vendor assessment frequency may need to be changed if the vendor has disclosed a data breach, implying that the frequency of cyclical assessments is only adjusted in response to a negative event. However, this approach is too reactive and may not prevent or mitigate the impact of the data breach, as the vendor’s risk level and criticality may have already increased before the data breach occurred. Therefore, statement D does not reflect a proactive and risk-based approach to determining the frequency of cyclical assessments. 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:
Which statement does NOT reflect current practice in addressing fourth party risk or subcontracting risk?
Third party contracts and agreements should require prior notice and approval for subcontracting
Outsourcers should rely on requesting and reviewing external audit reports to address subcontracting risk
Outsourcers should inspect the vendor's TPRM program and require evidence of the assessments of subcontractors
Third party contracts should include capturing, maintaining, and tracking authorized subcontractors
This statement does not reflect current practice in addressing fourth party risk or subcontracting risk because it is not sufficient to rely on external audit reports alone. Outsourcers should also perform their own due diligence and monitoring of the subcontractors, as well as ensure that the third party has a robust TPRM program in place. External audit reports may not cover all the relevant aspects of subcontracting risk, such as data security, compliance, performance, and quality. Moreover, external audit reports may not be timely, accurate, or consistent, and may not reflect the current state of the subcontractor’s operations. Therefore, outsourcers should adopt a more proactive and comprehensive approach to managing subcontracting risk, rather than relying on external audit reports. References:
Which statement is FALSE regarding the different types of contracts and agreements between outsourcers and service providers?
Contract addendums are not sufficient for addressing third party risk obligations as each requirement must be outlined in the Master Services Agreement (MSA)
Evergreen contracts are automatically renewed for each party after the maturity period, unless terminated under existing contract provisions
Requests for Proposals (RFPs) for outsourced services should include mandatory requirements based on an organization's TPRM program policies, standards and procedures
Statements of Work (SOWs) define operational requirements and obligations for each party
Contract addendums are supplementary documents that modify or amend the original contract terms. They can be used to address third party risk obligations, such as security, privacy, compliance, or performance standards, without having to rewrite the entire MSA. However, contract addendums should be consistent with the MSA and clearly specify the scope, duration, and responsibilities of each party. Contract addendums can also be used to update or revise the contract terms in response to changing business needs or regulatory requirements12.
The other statements are true regarding the different types of contracts and agreements between outsourcers and service providers. Evergreen contracts are contracts that do not have a fixed end date and are automatically renewed unless one party decides to terminate them under the existing contract provisions3. RFPs are documents that solicit proposals from potential service providers for a specific project or service. RFPs should include mandatory requirements based on an organization’s TPRM program policies, standards and procedures, such as risk assessment, due diligence, monitoring, reporting, and remediation . SOWs are documents that define the operational requirements and obligations for each party, such as the scope, deliverables, timelines, costs, quality, and performance metrics . References:
Which statement is TRUE regarding defining vendor classification or risk tiering in a TPRM program?
Vendor classification and risk tiers are based upon residual risk calculations
Vendor classification and risk tiering should only be used for critical third party relationships
Vendor classification and corresponding risk tiers utilize the same due diligence standards for controls evaluation based upon policy
Vendor classification and risk tier is determined by calculating the inherent risk associated with outsourcing a specific product or service
Vendor classification or risk tiering is a process of categorizing vendors based on the level of security risk they introduce to an organization12. It is a key component of a third-party risk management (TPRM) program, as it helps to prioritize and allocate resources for vendor assessment, monitoring, and remediation12. The statement D is true, as it reflects the first step of vendor classification or risk tiering, which is to determine the inherent risk of each vendor relationship based on the nature, scope, and complexity of the product or service being outsourced3 . Inherent risk is the risk that exists before any controls or mitigating factors are applied3 . By calculating the inherent risk, an organization can assign each vendor to a risk tier that reflects the potential impact and likelihood of a security breach or incident involving the vendor3 .
The other statements are false, as they do not accurately describe the vendor classification or risk tiering process. The statement A is false, as vendor classification and risk tiers are not based on residual risk calculations, but on inherent risk calculations. Residual risk is the risk that remains after controls or mitigating factors are applied3 . Residual risk is used to evaluate the effectiveness of the controls and the need for further action, but not to classify or tier vendors3 . The statement B is false, as vendor classification and risk tiering should be used for all third party relationships, not only for critical ones. Vendor classification and risk tiering helps to identify and prioritize the critical vendors, but also to manage the low and medium risk vendors according to their respective risk profiles12. The statement C is false, as vendor classification and corresponding risk tiers do not utilize the same due diligence standards for controls evaluation based upon policy, but different ones. Due diligence standards are the criteria and methods used to assess the security posture and performance of vendors. Due diligence standards should vary according to the risk tier of the vendor, as higher risk vendors require more rigorous and frequent evaluation than lower risk vendors.
References:
Which of the following would be a component of an arganization’s Ethics and Code of Conduct Program?
Participation in the company's annual privacy awareness program
A disciplinary process for non-compliance with key policies, including formal termination or change of status process based on non-compliance
Signing acknowledgement of Acceptable Use policy for use of company assets
A process to conduct periodic access reviews of critical Human Resource files
An organization’s Ethics and Code of Conduct Program is a set of policies, procedures, and practices that define the expected standards of behavior and ethical values for all employees and stakeholders. A key component of such a program is a disciplinary process that outlines the consequences and actions for violating the code of conduct or any other relevant policies. A disciplinary process helps to enforce the code of conduct, deter unethical behavior, and protect the organization’s reputation and integrity. A disciplinary process should include clear criteria for determining the severity and frequency of violations, the roles and responsibilities of the parties involved, the steps and timelines for investigation and resolution, and the range of sanctions and remedies available. A disciplinary process should also be fair, consistent, transparent, and respectful of the rights and dignity of the accused and the accuser. A disciplinary process may involve formal termination or change of status of the employee, depending on the nature and impact of the violation. Therefore, option B is a correct component of an organization’s Ethics and Code of Conduct Program.
The other options are not necessarily components of an Ethics and Code of Conduct Program, although they may be related or supportive of it. Option A, participation in the company’s annual privacy awareness program, is more likely to be a component of a Privacy Program, which is a specific area of ethics and compliance that deals with the protection and use of personal information. Option C, signing acknowledgement of Acceptable Use policy for use of company assets, is more likely to be a component of an Information Security Program, which is another specific area of ethics and compliance that deals with the safeguarding and management of data and systems. Option D, a process to conduct periodic access reviews of critical Human Resource files, is more likely to be a component of an Internal Control Program, which is a general area of ethics and compliance that deals with the design and implementation of controls to ensure the reliability and accuracy of financial and operational information. 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 of the following data safeguarding techniques provides the STRONGEST assurance that data does not identify an individual?
Data masking
Data encryption
Data anonymization
Data compression
Data anonymization is the process of removing or altering any information that can be used to identify an individual from a data set. This technique provides the strongest assurance that data does not identify an individual, as it makes it impossible or extremely difficult to link the data back to the original source. Data anonymization can be achieved by various methods, such as generalization, suppression, perturbation, or pseudonymization12. Data anonymization is often used for privacy protection, compliance with data protection regulations, and data sharing purposes3. References:
When defining third party requirements for transmitting Pll, which factors provide stranger controls?
Full disk encryption and backup
Available bandwidth and redundancy
Strength of encryption cipher and authentication method
Logging and monitoring
Personally identifiable information (PII) is any data that can be used to identify, contact, or locate an individual, such as name, address, email, phone number, social security number, etc. PII is subject to various legal and regulatory requirements, such as the GDPR, HIPAA, PCI DSS, and others, depending on the industry and jurisdiction. PII also poses significant security and privacy risks, as it can be exploited by malicious actors for identity theft, fraud, phishing, or other cyberattacks. Therefore, organizations that collect, store, process, or transmit PII must implement appropriate safeguards to protect it from unauthorized access, disclosure, modification, or loss.
One of the key safeguards for PII protection is encryption, which is the process of transforming data into an unreadable format using a secret key. Encryption ensures that only authorized parties who have the key can access the original data. Encryption can be applied to data at rest (stored on a device or a server) or data in transit (moving across a network or the internet). Encryption can also be symmetric (using the same key for encryption and decryption) or asymmetric (using a public key for encryption and a private key for decryption).
Another key safeguard for PII protection is authentication, which is the process of verifying the identity of a user or a system that requests access to data. Authentication ensures that only legitimate and authorized parties can access the data. Authentication can be based on something the user knows (such as a password or a PIN), something the user has (such as a token or a smart card), something the user is (such as a fingerprint or a face scan), or a combination of these factors. Authentication can also be enhanced by using additional methods, such as one-time passwords, challenge-response questions, or multi-factor authentication.
When defining third party requirements for transmitting PII, the factors that provide stronger controls are the strength of encryption cipher and authentication method. These factors determine how secure and reliable the data transmission is, and how resistant it is to potential attacks or breaches. The strength of encryption cipher refers to the algorithm and the key size used to encrypt the data. The stronger the cipher, the more difficult it is to break or crack the encryption. The strength of authentication method refers to the type and the number of factors used to verify the identity of the user or the system. The stronger the authentication method, the more difficult it is to impersonate or compromise the user or the system.
The other factors, such as full disk encryption and backup, available bandwidth and redundancy, and logging and monitoring, are also important for PII protection, but they do not directly affect the data transmission process. Full disk encryption and backup are relevant for data at rest, not data in transit. They provide protection in case of device theft, loss, or damage, but they do not prevent data interception or modification during transmission. Available bandwidth and redundancy are relevant for data availability and performance, not data security and privacy. They ensure that the data transmission is fast and reliable, but they do not prevent data exposure or corruption during transmission. Logging and monitoring are relevant for data audit and compliance, not data encryption and authentication. They provide visibility and accountability for the data transmission activities, but they do not prevent data access or misuse during transmission. References:
Which example of analyzing a vendor's response should trigger further investigation of their information security policies?
Determination that the security policies include contract or temporary workers
Determination that the security policies do not specify any requirements for third party governance and oversight
Determination that the security policies are approved by management and available to constituents including employees and contract workers
Determination that the security policies are communicated to constituents including full and part-time employees
One of the key elements of a robust information security policy is the definition and implementation of requirements for third party governance and oversight. This means that the vendor should have clear and consistent processes and procedures for managing and monitoring the information security risks and controls of their subcontractors, suppliers, or service providers. Third party governance and oversight should include the following aspects12:
Which statement is FALSE regarding problem or issue management?
Problems or issues are the root cause of an actual or potential incident
Problem or issue management involves managing workarounds or known errors
Problems or issues typically lead to systemic failures
Problem or issue management may reduce the likelihood and impact of incidents
In the context of Third-Party Risk Management (TPRM), problems or issues do not inherently lead to systemic failures but are indicative of underlying faults within processes or systems that could potentially result in incidents. Problem or issue management is a critical component of TPRM, focusing on identifying, classifying, and managing the root causes of incidents to prevent their recurrence and mitigate their impact. Effective problem management involves not just managing workarounds or known errors, but also implementing permanent fixes to eliminate the root causes of problems. By addressing the underlying issues, organizations can enhance their operational resilience and reduce the likelihood and impact of future incidents. This approach aligns with best practices in TPRM, emphasizing proactive risk identification, assessment, and mitigation to safeguard against potential disruptions in the supply chain and third-party ecosystems.
References:
When evaluating compliance artifacts for change management, a robust process should include the following attributes:
Approval, validation, auditable.
Logging, approvals, validation, back-out and exception procedures
Logging, approval, back-out.
Communications, approval, auditable.
Change management is the process of controlling and documenting any changes to the scope, objectives, requirements, deliverables, or resources of a project or a program. Change management ensures that the impact of any change is assessed and communicated to all stakeholders, and that the changes are implemented in a controlled and coordinated manner. Compliance artifacts are the documents, records, or reports that demonstrate the adherence to the change management process and the regulatory or industry standards.
A robust change management process should include the following attributes:
References:
Which statement is TRUE regarding the tools used in TPRM risk analyses?
Risk treatment plans define the due diligence standards for third party assessments
Risk ratings summarize the findings in vendor remediation plans
Vendor inventories provide an up-to-date record of high risk relationships across an organization
Risk registers are used for logging and tracking third party risks
Risk registers are tools that help organizations document, monitor, and manage their third party risks. They typically include information such as the risk description, category, source, impact, likelihood, rating, owner, status, and action plan. Risk registers enable organizations to prioritize their risks, assign responsibilities, track progress, and report on their risk posture. According to the CTPRP Study Guide, "A risk register is a tool for capturing and managing risks throughout the third-party lifecycle. It provides a comprehensive view of the organization’s third-party risk profile and facilitates risk reporting and communication."1 Similarly, the GARP Best Practices Guidance for Third-Party Risk states, "A risk register is a tool that records and tracks the risks associated with third parties. It helps to identify, assess, and prioritize risks, as well as to assign ownership, mitigation actions, and target dates."2
References:
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:
If a system requires ALL of the following for accessing its data: (1) a password, (2) a
security token, and (3) a user's fingerprint, the system employs:
Biometric authentication
Challenge/Response authentication
One-Time Password (OTP) authentication
Multi-factor authentication
Multi-factor authentication (MFA) is an electronic authentication method that requires a user to present two or more pieces of evidence (or factors) to an authentication mechanism. The factors can be something the user knows (such as a password or a PIN), something the user has (such as a smartphone or a security token), or something the user is (such as a fingerprint or a facial recognition). MFA enhances the security of online accounts and applications by making it harder for attackers to gain access with stolen or guessed credentials. MFA is recommended as a best practice for third-party risk management, as it can reduce the risk of unauthorized access, data breaches, and identity theft. MFA is also a requirement for some regulatory standards and frameworks, such as PCI DSS, HIPAA, and NIST 800-63. References:
Which risk treatment approach typically requires a negotiation of contract terms between parties?
Monitor the risk
Mitigate the risk
Accept the risk
Transfer the risk
Risk treatment is the process of selecting and implementing measures to modify risk, according to the organization’s risk appetite and tolerance. There are four main risk treatment options: avoid, reduce, transfer, or retain the risk123. Among these options, risk transfer typically requires a negotiation of contract terms between parties, as it involves shifting the responsibility or burden of the risk to another entity, such as an insurer, a supplier, a partner, or a customer1234. Risk transfer can be achieved through various contractual arrangements, such as insurance policies, indemnity clauses, warranties, guarantees, service level agreements, or outsourcing agreements1234. These arrangements usually involve a cost-benefit analysis, a due diligence process, and a mutual agreement on the terms and conditions of the risk transfer1234. Therefore, option D is the correct answer, as it is the only one that reflects a risk treatment approach that typically requires a negotiation of contract terms between parties. References: The following resources support the verified answer and explanation:
Which statement BEST describes the use of risk based decisioning in prioritizing gaps identified at a critical vendor when defining the corrective action plan?
The assessor determined that gaps should be analyzed, documented, reviewed for compensating controls, and submitted to the business owner to approve risk treatment plan
The assessor decided that the critical gaps should be discussed in the closing meeting so that the vendor can begin to implement corrective actions immediately
The assessor concluded that all gaps should be logged and treated as high severity findings since the assessment was performed on a critical vendor
The assessor determined that all gaps should be logged and communicated that if the gaps were corrected immediately they would not need to be included in the findings report
According to the Shared Assessments Certified Third Party Risk Professional (CTPRP) Study Guide, risk based decisioning is the process of applying risk criteria to prioritize and address the gaps identified during a third-party risk assessment1. The assessor should analyze the gaps based on the impact, likelihood, and urgency of the risk, and document the findings and recommendations in a report. The assessor should also review the existing or proposed compensating controls that could mitigate the risk, and submit the report to the business owner for approval of the risk treatment plan. The risk treatment plan could include accepting, transferring, avoiding, or reducing the risk, depending on the risk appetite and tolerance of the organization1.
The other statements do not reflect the best use of risk based decisioning, as they either ignore the risk analysis and documentation process, or apply a uniform or arbitrary approach to prioritizing and addressing the gaps. The assessor should not decide or conclude on the risk treatment plan without consulting the business owner, as the business owner is ultimately responsible for the third-party relationship and the risk management decisions1. The assessor should also not communicate that the gaps would not be included in the report if they were corrected immediately, as this could compromise the integrity and transparency of the assessment process and the report2.
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.
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Which requirement is the MOST important for managing risk when the vendor contract terminates?
The responsibility to perform a financial review of outstanding invoices
The commitment to perform a final assessment based upon due diligence standards
The requirement to ensure secure data destruction and asset return
The obligation to define contract terms for transition services
When a vendor contract terminates, one of the most important requirements for managing risk is to ensure that the vendor securely destroys or returns any data or assets that belong to the organization or its customers. This is to prevent any unauthorized access, use, disclosure, or loss of sensitive information or resources that could result in legal, regulatory, reputational, or financial consequences. The organization should also verify that the vendor complies with this requirement by requesting evidence or conducting audits.
The other options are also important, but not as critical as ensuring data and asset security. Performing a financial review of outstanding invoices is necessary to avoid overpaying or underpaying the vendor, and to resolve any disputes or claims. Performing a final assessment based on due diligence standards is useful to evaluate the vendor’s performance, identify any issues or gaps, and document any lessons learned or best practices. Defining contract terms for transition services is helpful to facilitate a smooth and orderly handover of responsibilities, deliverables, or processes to another vendor or internal team.
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An organization has experienced an unrecoverable data loss event after restoring a system. This is an example of:
A failure to conduct a Root Cause Analysis (RCA)
A failure to meet the Recovery Time Objective (RTO)
A failure to meet the Recovery Consistency Objective (RCO)
A failure to meet the Recovery Point Objective (RPO)
An unrecoverable data loss event after restoring a system is indicative of a failure to meet the Recovery Point Objective (RPO). The RPO represents the maximum tolerable period in which data might be lost due to an incident and is a critical component of an organization's disaster recovery and business continuity planning. If data restoration efforts are unsuccessful and lead to unrecoverable data loss, it means that the organization's data backup and recovery processes were insufficient to meet the defined RPO, leading to a loss of data beyond the acceptable threshold. This situation underscores the importance of implementing effective data backup and recovery strategies that align with the organization's RPO to minimize data loss and ensure business continuity in the event of a disruption.
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Which of the following factors is LEAST likely to trigger notification obligations in incident response?
Regulatory requirements
Data classification or sensitivity
Encryption of data
Contractual terms
Notification obligations in incident response are the legal or contractual duties to inform relevant parties about a security breach or incident that affects their data or systems. These obligations may vary depending on the type, scope, and impact of the incident, as well as the jurisdiction, industry, and contractual agreements involved. The factors that are most likely to trigger notification obligations are:
The factor that is least likely to trigger notification obligations is:
References:
When conducting an assessment of a third party's physical security controls, which of the following represents the innermost layer in a ‘Defense in Depth’ model?
Public internal
Restricted entry
Private internal
Public external
In the ‘Defense in Depth’ security model, the innermost layer typically focuses on protecting the most sensitive and critical assets, which are often categorized as 'Private internal'. This layer includes security controls and measures that are designed to safeguard the core, confidential aspects of an organization's infrastructure and data. It encompasses controls such as access controls, encryption, and monitoring of sensitive systems and data to prevent unauthorized access and ensure data integrity and confidentiality. The 'Private internal' layer is crucial for maintaining the security of critical information and systems that are essential to the organization's operations and could have the most significant impact if compromised. Implementing robust security measures at this layer is vital for mitigating risks associated with physical access to critical infrastructure and sensitive information.
References:
Which cloud deployment model is primarily focused on the application layer?
Infrastructure as a Service
Software as a Service
Function a3 a Service
Platform as a Service
Software as a Service (SaaS) is a cloud deployment model that provides users with access to software applications over the internet, without requiring them to install, maintain, or update the software on their own devices. SaaS is primarily focused on the application layer, as it delivers the complete functionality of the software to the end users, while abstracting away the underlying infrastructure, platform, and middleware layers. SaaS providers are responsible for managing the servers, databases, networks, security, and scalability of the software, as well as ensuring its availability, performance, and compliance. SaaS users only pay for the software usage, usually on a subscription or pay-per-use basis, and can access the software from any device and location, as long as they have an internet connection. Some examples of SaaS applications are Gmail, Salesforce, Dropbox, and Netflix. 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 BEST describes the methods of performing due diligence during third party risk assessments?
Inspecting physical and environmental security controls by conducting a facility tour
Reviewing status of findings from the questionnaire and defining remediation plans
interviewing subject matter experts or control owners, reviewing compliance artifacts, and validating controls
Reviewing and assessing only the obligations that are specifically defined in the contract
Performing due diligence during third party risk assessments is a process of verifying and validating the information provided by the third parties, as well as identifying and assessing any potential risks or issues that may arise from the relationship. Due diligence methods may vary depending on the type, scope, and complexity of the third party engagement, but they generally involve the following steps123:
The other options are not as comprehensive or accurate as the methods described above, as they may not cover all the aspects or dimensions of the third party risk assessment, or they may rely on incomplete or outdated information. Inspecting physical and environmental security controls by conducting a facility tour is only one part of the validation method, and it may not be applicable or feasible for all types of third parties, such as cloud service providers or remote workers. Reviewing status of findings from the questionnaire and defining remediation plans is more of a follow-up or monitoring activity, rather than a due diligence method, as it assumes that the questionnaire has already been completed and analyzed. Reviewing and assessing only the obligations that are specifically defined in the contract is a narrow and limited approach, as it may not capture the full scope or complexity of the third party relationship, or the dynamic and evolving nature of the risks or issues involved. References:
Which of the following BEST reflects components of an environmental controls testing program?
Scheduling testing of building access and intrusion systems
Remote monitoring of HVAC, Smoke, Fire, Water or Power
Auditing the CCTV backup process and card-key access process
Conducting periodic reviews of personnel access controls and building intrusion systems
Remote monitoring of HVAC, Smoke, Fire, Water, or Power systems best reflects components of an environmental controls testing program. These systems are critical to ensuring the physical security and operational integrity of data centers and IT facilities. Environmental controls testing programs are designed to verify that these systems are functioning correctly and can effectively respond to environmental threats. This includes monitoring temperature and humidity (HVAC), detecting smoke or fire, preventing water damage, and ensuring uninterrupted power supply. Regular testing and monitoring of these systems help prevent equipment damage, data loss, and downtime due to environmental factors.
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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.
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TESTED 14 May 2024