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Shared Assessments Certified Third-Party Risk Professional (CTPRP) Sample Questions (Q51-Q56):

NEW QUESTION # 51
Which of the following scenarios best illustrates proactive third-party risk management?

A. A company reviews only their direct vendor's compliance, assuming subcontractors align.
B. A company renegotiates the contract terms to include stricter compliance guidelines after an incident.
C. A company waits for an annual review to assess vendor and subcontractor compliance.
D. A company conducts regular audits on all subcontractors to ensure compliance with data protection laws before issues arise.

Answer: D

Explanation:
Proactively auditing subcontractors ensures any non-compliance is discovered and addressed before it can become a liability, thus illustrating effective third-party risk management by preemptively safeguarding the company's interests.

NEW QUESTION # 52
Which of the following is NOT a direct component of controls evaluation but rather pertains to contract management?

A. Enforcing the terms of service and conditions
B. Establishing performance measurement criteria
C. Managing dispute resolution processes
D. Negotiating contract terms for the right to audit

Answer: D

Explanation:
The correct answer focuses on a component of contract management, distinct from controls evaluation. This negotiation ensures that the organization can audit the third party to ensure adherence to the contract and applicable regulations.

NEW QUESTION # 53
Which entity traditionally forms the third line of defense in an organization's risk management structure?

A. The executive management team
B. The compliance department
C. The risk management office
D. The internal audit function

Answer: D

Explanation:
The internal audit function is designated as the third line of defense, providing an independent and unbiased review to ensure that risk controls and governance frameworks are effective, separate from direct business activities.

NEW QUESTION # 54
Which type of testing is not typically utilized in patch management to ensure a patch does not introduce new issues?

A. Load testing, which is primarily used to test the performance under stress.
B. Integration testing, generally focused more on new developments than on patches.
C. User acceptance testing, as it is less common in immediate patch deployment.
D. Compatibility testing, usually not necessary for standalone systems.

Answer: C

Explanation:
User acceptance testing (UAT) is less commonly associated with patch management as it involves end-user testing in the final stage before deployment, which may not be practical or necessary for all types of patches, especially those urgent for security vulnerabilities.

NEW QUESTION # 55
Select the risk type that is defined as: "A third party may not be able to meet its obligations due to inadequate systems or processes".

A. Competency risk
B. Availability risk
C. Reliability risk
D. Performance risk

Answer: D

Explanation:
Performance risk, defined as the risk that a third party may not be able to meet its obligations due to inadequate systems or processes, accurately describes the situation. This type of risk involves concerns about the third party's ability to deliver services or products at the required performance level, potentially due to limitations in their technology infrastructure, operational procedures, or management practices. Identifying and managing performance risk is essential in Third-Party Risk Management (TPRM) to ensure that third-party vendors can reliably meet contractual and service-level agreements, thereby minimizing the impact on the organization's operations and service delivery.
References:
* TPRM guidelines, such as those from the Office of the Comptroller of the Currency (OCC) and the Federal Financial Institutions Examination Council (FFIEC), highlight the importance of assessing and
* managing performance risks associated with third-party relationships.
* The "Third-Party Risk Management Guide" by ISACA discusses various types of risks, including performance risk, associated with engaging third-party service providers, emphasizing the need for thorough due diligence and ongoing monitoring.

NEW QUESTION # 56
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Shared Assessments - Unparalleled Exam CTPRP Learning

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Shared Assessments Certified Third-Party Risk Professional (CTPRP) Sample Questions (Q51-Q56):

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