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NEW QUESTION # 31
Which set of procedures is typically NOT addressed within data privacy policies?
- A. Procedures to limit access and disclosure of personal information to third parties
- B. Procedures for handling data access requests from individuals
- C. Procedures for incident reporting and notification
- D. Procedures for configuration settings in identity access management
Answer: D
Explanation:
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:
* The purpose and scope of data collection and processing
* The legal basis and consent mechanism for data processing
* The types and categories of personal data collected and processed
* The data retention and deletion policies and practices
* The data security and encryption measures and standards
* The data sharing and disclosure practices and procedures, including the use of third parties and cross-border transfers
* The data access, correction, and deletion rights and requests of individuals
* The data breach and incident response and notification procedures and responsibilities
* The data protection officer and contact details
* The data privacy policy review and update process and frequency
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 ...]
NEW QUESTION # 32
Which of the following BEST describes the distinction between a regulation and a standard?
- A. There is no distinction, regulations and standards are the same and have equal impact
- B. Standards are always a subset of a regulation
- C. A standard must be adhered to by companies based on the industry they are in, while regulations are voluntary.
- D. A regulation must be adhered to by all companies subject to its requirements, but companies "can voluntarily choose to follow standards.
Answer: D
Explanation:
A regulation is a rule of order having the force of law, prescribed by a superior or competent authority, relating to the actions of those under the authority's control. Regulations are issued by various government departments and agencies to carry out the intent of legislation enacted by the legislature of the applicable jurisdiction. Regulations also function to ensure uniform application of the law. A standard is a guideline established generally by private-sector bodies and that are available for use by any person or organization, private or government. The term includes what are commonly referred to as 'industry standards' as well as
'consensus standards'. Standards are developed through a voluntary process of collaboration and consensus among stakeholders, such as manufacturers, consumers, regulators, and experts. Standards may reflect best practices, technical specifications, performance criteria, or quality requirements. Standards do not have the force of law unless they are adopted or referenced by a regulation. Therefore, a regulation must be adhered to by all companies subject to its requirements, but companies can voluntarily choose to follow standards that are relevant and beneficial to their operations, products, or services. References:
* The Difference Between Regulations and Standards
* Regulations vs Standards: Clearing Up the Confusion - AEM
* Standards vs. Regulations
* Certified Third Party Risk Professional (CTPRP) Study Guide
NEW QUESTION # 33
Which statement is TRUE regarding artifacts reviewed when assessing the Cardholder Data Environment (CDE) in payment card processing?
- A. The Self-Assessment Questionnaire (SAQ) provides independent testing of controls
- B. The Data Security Standards (DSS) framework should be used to scope the assessment
- C. A System and Organization Controls (SOC) report is sufficient if the report addresses the same location
- D. The Report on Compliance (ROC) provides the assessment results completed by a qualified security assessor that includes an onsite audit
Answer: D
Explanation:
The Cardholder Data Environment (CDE) is the part of the network that stores, processes, or transmits cardholder data or sensitive authentication data, as well as any connected or security-impacting systems123. The CDE is subject to the Payment Card Industry Data Security Standard (PCI DSS), which is a set of requirements and guidelines for ensuring the security and compliance of payment card transactions123.
The PCI DSS defines various artifacts that are reviewed when assessing the CDE, such as:
* The Data Security Standards (DSS) framework: This is the document that specifies the 12 high-level requirements and the corresponding sub-requirements and testing procedures for PCI DSS compliance123. The DSS framework should be used to scope the assessment, meaning to identify and document the systems and components that are in scope for PCI DSS, as well as the applicable requirements and controls for each system and component123. Therefore, option A is a true statement regarding artifacts reviewed when assessing the CDE.
* The Report on Compliance (ROC): This is the report that provides the assessment results completed by a qualified security assessor (QSA) that includes an onsite audit of the CDE123. The ROC is a detailed and comprehensive document that validates the organization's compliance status and identifies any gaps or deficiencies that need to be remediated123. The ROC is required for merchants and service providers that process more than 6 million transactions annually, or that have suffered a breach or been compromised in the past year123. Therefore, option B is a true statement regarding artifacts reviewed when assessing the CDE.
* The Self-Assessment Questionnaire (SAQ): This is a questionnaire that provides a validation tool for merchants and service providers that are not required to submit a ROC123. The SAQ is a self-assessment tool that allows the organization to evaluate its own compliance status and identify any gaps or deficiencies that need to be remediated123. The SAQ does not provide independent testing of controls, as it is based on the organization's self-reported answers and evidence123. Therefore, option C is a false statement regarding artifacts reviewed when assessing the CDE.
* A System and Organization Controls (SOC) report: This is a report that provides an independent audit of the internal controls and processes of a service organization, such as a cloud provider, a data center, or a payment processor45. The SOC report is not specific to PCI DSS, but rather to other standards and frameworks, such as SOC 1 (based on SSAE 18), SOC 2 (based on Trust Services Criteria), or SOC 3 (based on SOC 2)45. A SOC report is not sufficient to demonstrate PCI DSS compliance, as it may not cover all the requirements and controls of the PCI DSS, or it may not address the same location or scope as the CDE123. Therefore, option D is a false statement regarding artifacts reviewed when assessing the CDE.
References: The following resources support the verified answer and explanation:
* 1: PCI DSS Quick Reference Guide
* 2: PCI DSS FAQs
* 3: PCI DSS Glossary
* 4: What is a SOC report?
* 5: SOC Reports: What They Are, and Why They Matter
NEW QUESTION # 34
Which of the following actions reflects the first step in developing an emergency response plan?
- A. incorporate periodic crisis management team tabletop exercises to test different scenarios
- B. Conduct an assessment that includes an inventory of the types of events that have the greatest potential to trigger an emergency response plan
- C. Consider work-from-home parameters in the emergency response plan
- D. Use the results of continuous monitoring tools to develop the emergency response plan
Answer: B
Explanation:
An emergency response plan (ERP) is a document that outlines the procedures and actions to be taken by an organization in the event of a disruptive incident that threatens its operations, assets, reputation, or stakeholders1. An ERP should be aligned with the organization's business continuity and disaster recovery plans, and should cover the roles and responsibilities, communication channels, escalation processes, resources, and recovery strategies for different types of emergencies2.
The first step in developing an ERP is to conduct an assessment that includes an inventory of the types of events that have the greatest potential to trigger an ERP3. This assessment should consider the likelihood and impact of various scenarios, such as natural disasters, cyberattacks, pandemics, civil unrest, terrorism, or supply chain disruptions, and identify the critical functions, processes, assets, and dependencies that could be affected by these events4. The assessment should also evaluate the existing capabilities and gaps in the organization's preparedness and response, and prioritize the areas that need improvement or enhancement5.
The assessment should be based on a comprehensive risk analysis and a business impact analysis, and should involve input from relevant stakeholders, such as senior management, business units, IT, security, legal, compliance, human resources, and third parties.
The other options are not the first step in developing an ERP, but rather subsequent or complementary steps that should be performed after the initial assessment. Considering work-from-home parameters, incorporating periodic crisis management team tabletop exercises, and using the results of continuous monitoring tools are all important aspects of an ERP, but they are not the starting point for creating one. These steps should be based on the findings and recommendations of the assessment, and should be updated and tested regularly to ensure the effectiveness and relevance of the ERP. References: 1: What is an Emergency Response Plan? | IBM 2: Emergency Response Plan | Ready.gov 3: 8 Steps to Building a Third-Party Incident Response Plan | Prevalent 4: How to create an effective business continuity plan | CIO 5: Emergency Response Planning: 4 Steps to Creating a Plan : Third-Party Risk Management: Final Interagency Guidance : Improving Third-Party Incident Response | Prevalent
NEW QUESTION # 35
Which capability is LEAST likely to be included in the annual testing activities for Business Continuity or Disaster Recovery plans?
- A. Ability for business personnel to perform their functions at an alternate work space location
- B. Require participation by third party service providers in collaboration with industry exercises
- C. Plans to enable technology and business operations to be resumed at a back-up site
- D. Process to validate that specific databases can be accessed by applications at the designated location
Answer: B
Explanation:
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:
* A. Plans to enable technology and business operations to be resumed at a back-up site. This is a common testing activity that involves simulating a disaster scenario that affects the primary site and activating the back-up site to resume the operations. This tests the technical infrastructure, data backup and recovery, and operational procedures of the BC/DR plan12.
* B. Process to validate that specific databases can be accessed by applications at the designated location.
This is a common testing activity that involves verifying that the data and applications that are critical for the business functions are accessible and functional at the recovery location. This tests the data integrity, security, and compatibility of the BC/DR plan12.
* C. Ability for business personnel to perform their functions at an alternate work space location. This is a common testing activity that involves relocating the key staff to an alternate location and having them perform their normal duties. This tests the communication, coordination, and productivity of the BC/DR plan12.
References:
* 1: How to Test a Business Continuity Disaster Recovery (BCDR) Plan
* 2: Business Continuity or Disaster Recovery Testing and Training Guidelines
* 3: Third Party Risk Management and Business Continuity Planning
* 4: Third Party Risk Management: Business Continuity and Disaster Recovery
NEW QUESTION # 36
Which risk treatment approach typically requires a negotiation of contract terms between parties?
- A. Transfer the risk
- B. Mitigate the risk
- C. Accept the risk
- D. Monitor the risk
Answer: A
Explanation:
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:
* 1: Risk Treatment - ENISA
* 2: Four Basic Risk Treatment Planning Approaches - DigiLEAF
* 3: 3 Steps to Treating Your Organizational Risks - American Society of ...
* 4: Risk Management Framework - Treat Risks - Chartered Accountants ANZ
NEW QUESTION # 37
Which of the following changes to the production environment is typically NOT subject to the change control process?
- A. Change in systems
- B. Update to application
- C. Change in network
- D. Change to administrator access
Answer: D
Explanation:
Changes to administrator access are typically not subject to the traditional change control process, as they often pertain to user access management rather than modifications to the production environment's infrastructure or applications. Administrator access changes involve granting, altering, or revoking administrative privileges to systems, which is managed through access control policies and procedures rather than through change control. Change control processes are primarily concerned with changes to the network, systems, and applications that could affect the production environment's stability, security, and functionality.
In contrast, managing administrative access is part of identity and access management (IAM), which focuses on ensuring that only authorized individuals have access to specific levels of information and system functionality.
References:
* Access control and identity management best practices, such as those outlined in NIST SP 800-53 (Security and Privacy Controls for Federal Information Systems and Organizations), emphasize the separation of duties and least privilege principles, which guide the management of administrator access changes.
* Resources like "Access Control Systems and Methodology" from ISC's CISSP Common Body of Knowledge provide guidelines on effectively managing access to prevent unauthorized access and maintain system security.
NEW QUESTION # 38
Which of the following BEST reflects the risk of a 'shadow IT" function?
- A. "Shadow IT" functions often fail to detect unauthorized use of information assets
- B. "Shadow IT" functions often lack governance and security oversight
- C. inability to prevent "shadow IT' functions from using unauthorized software solutions
- D. Failure to implement strong security controls because IT is executed remotely
Answer: B
Explanation:
Shadow IT refers to the use of IT systems, services, or devices that are not authorized, approved, or supported by the official IT department. Shadow IT can pose significant risks to an organization's data security, compliance, performance, and reputation. One of the main risks of shadow IT is that it often lacks governance and security oversight. This means that the shadow IT functions may not follow the established policies, standards, and best practices for IT management, such as data protection, access control, encryption, backup, patching, auditing, and reporting. This can expose the organization to various threats, such as data breaches, cyberattacks, malware infections, legal liabilities, regulatory fines, and reputational damage. Additionally, shadow IT can create operational inefficiencies, compatibility issues, duplication of efforts, and increased costs for the organization.
According to the web search results from the search_web tool, shadow IT is a common and growing phenomenon in many organizations, especially with the proliferation of cloud-based services and applications. Some of the articles suggest the following best practices for managing and mitigating shadow IT risks123:
* Performing SaaS assessments to proactively detect shadow IT
* Prioritizing user experience (UX) and providing support for integrating tools
* Streamlining user account and identity management
* Using operating systems and devices with which employees are comfortable
* Compromising and collaborating with users to minimize shadow IT risks
* Educating and training users on the security risks and consequences of shadow IT
* Establishing clear policies and guidelines for IT procurement and usage
* Creating a culture of trust and transparency between IT and business units Therefore, the verified answer to the question is B. "Shadow IT" functions often lack governance and security oversight.
References:
* Shadow IT Explained: Risks & Opportunities - BMC Software
* Start reducing your organization's Shadow IT risk in 3 steps
* What is shadow IT? - Article | SailPoint
NEW QUESTION # 39
Your organization has recently acquired a set of new global third party relationships due to M&A. You must define your risk assessment process based on your due diligence standards. Which risk factor is LEAST important in defining your requirements?
- A. The risk of natural disasters and physical security risk based on geolocation
- B. The risk of increased expense to conduct vendor assessments based on client contractual requirements
- C. The financial risk due to local economic factors and country infrastructure
- D. The risk of increased government regulation and decreased political stability based on country risk
Answer: B
Explanation:
The risk of increased expense to conduct vendor assessments based on client contractual requirements is the least important factor in defining your risk assessment process for new global third party relationships. This is because the expense of vendor assessments is not a direct risk to your organization's security, compliance, reputation, or performance, but rather a cost of doing business that can be budgeted and optimized. While vendor assessments are necessary and beneficial, they are not the primary driver of your risk assessment process, which should focus on the potential impact and likelihood of adverse events or incidents involving your third parties. The other factors (B, C, and D) are more important because they directly affect the level of risk exposure and the mitigation strategies for your third parties. For example, natural disasters and physical security risks can disrupt your third party's operations and service delivery, government regulation and political stability can affect your third party's compliance and legal obligations, and financial risk can affect your third party's solvency and reliability. Therefore, these factors should be considered more carefully when defining your risk assessment process. References:
* 1: Third Party Risk Management: Managing Risk | Deloitte US
* 2: What Is Third-Party Risk Management (TPRM)? 2024 Guide | UpGuard
* 3: What is Third-Party Risk Management? | Blog | OneTrust
NEW QUESTION # 40
Which statement BEST represents the primary objective of a third party risk assessment:
- A. To determine the scope of the business relationship
- B. To validate that the vendor/service provider has adequate controls in place based on the organization's risk posture
- C. To assess the appropriateness of non-disclosure agreements regarding the organization's systems/data
- D. To evaluate the risk posture of all vendors/service providers in the vendor inventory
Answer: B
Explanation:
The primary objective of a third party risk assessment is to validate that the vendor/service provider has adequate controls in place based on the organization's risk posture. A third party risk assessment (also known as supplier risk assessment) quantifies the risks associated with third-party vendors and suppliers that provide products or services to your organization1. This assessment is useful for analyzing both new and ongoing supplier relationships. The growing risk of supply chain attacks makes it critical to conduct thorough and regular risk assessments of your third parties. A third party risk assessment helps you identify, measure, and mitigate the potential risks that your third parties pose to your organization, such as data breaches, cyberattacks, compliance violations, operational disruptions, reputational damage, or financial losses. A third party risk assessment also helps you align your third party risk management (TPRM) program with your organization's risk appetite, policies, standards, and procedures. A third party risk assessment typically involves the following steps1:
* Scoping: Define the scope of the assessment based on the type, nature, and criticality of the third party relationship. Determine the relevant risk domains, such as security, privacy, compliance, business continuity, etc.
* Data collection: Gather information from the third party using various methods, such as questionnaires, surveys, interviews, audits, tests, or evidence reviews.
* Analysis: Analyze the data collected and compare it with your organization's risk criteria, benchmarks, and best practices. Identify any gaps, weaknesses, or issues in the third party's controls, processes, or performance.
* Reporting: Document the findings and recommendations of the assessment in a clear and concise report.
Communicate the results to the relevant stakeholders, such as senior management, business owners, or regulators.
* Remediation: Follow up with the third party to ensure that they implement the necessary actions to address the identified risks. Monitor and track the progress and effectiveness of the remediation plan.
* Review: Review and update the assessment periodically or whenever there are significant changes in the third party relationship, the risk environment, or the regulatory requirements.
The other statements are not the primary objective of a third party risk assessment, although they may be related or secondary objectives. Assessing the appropriateness of non-disclosure agreements regarding the organization's systems/data is a legal objective that may be part of the contract negotiation or review process.
Determining the scope of the business relationship is a strategic objective that may be part of the vendor selection or due diligence process. Evaluating the risk posture of all vendors/service providers in the vendor inventory is a holistic objective that may be part of the vendor risk management or governance process.
References:
* 1: Third-Party Risk Assessment: A Practical Guide - BlueVoyant
* : What Is Third-Party Risk Management (TPRM)? 2024 Guide | UpGuard
* : What is Third-Party Risk Management? | Blog | OneTrust
NEW QUESTION # 41
Which approach for managing end-user device security is typically used for lost or stolen company-owned devices?
- A. Remote wipe of the device and restore to factory settings
- B. Deletion of data after a pre-defined number of failed login attempts
- C. Enterprise wipe of all company data and contacts
- D. Remotely enable lost mode status on the device
Answer: A
Explanation:
Remote wipe is a security feature that allows an administrator or a user to remotely erase all the data and settings on a device in case it is lost or stolen. This prevents unauthorized access to sensitive information and reduces the risk of data breaches. Remote wipe is typically used for company-owned devices, as it ensures that no company data remains on the device after it is lost or stolen. Remote wipe also restores the device to its factory settings, making it unusable for the thief or finder. Remote wipe can be performed through various methods, such as using a mobile device management (MDM) solution, a cloud service, or a built-in feature of the device's operating system. References:
* 1: How to protect your company from data breaches caused by lost or stolen devices
* 2: BYOD vs Company-Owned Devices: How to Maintain Security
* 3: Lost or Stolen Business Device? Here's What to do Next
NEW QUESTION # 42
Which of the following factors is MOST important when assessing the risk of shadow IT in organizational security?
- A. The organization's resources and investment are sufficient to meet security requirements
- B. The organization requires security training and certification for security personnel
- C. The organization defines staffing levels to address impact of any turnover in security roles
- D. The organization maintains adequate policies and procedures that communicate required controls for security functions
Answer: D
Explanation:
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:
* Educate and inform its employees about the security risks and implications of shadow IT, and the benefits and advantages of using authorized and supported IT resources.
* Establish and enforce clear and consistent rules and boundaries for the use and management of IT resources, and the consequences and penalties for violating them.
* Monitor and audit the compliance and performance of its employees, vendors, and other stakeholders regarding the use and management of IT resources, and identify and address any deviations or issues.
* Review and update its policies and procedures regularly, and communicate any changes or updates to its employees, vendors, and other stakeholders.
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:
* : Shadow IT Explained: Risks & Opportunities - BMC Software
* : What is Shadow IT? | IBM
* : Shadow IT: What Are the Risks and How Can You Mitigate Them? - Ekran System
* : Policies and Procedures - Shared Assessments
NEW QUESTION # 43
Which statement BEST describes the use of risk based decisioning in prioritizing gaps identified at a critical vendor when defining the corrective action plan?
- A. 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
- B. 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
- C. The assessor determined that gaps should be analyzed, documented, reviewed for compensating controls, and submitted to the business owner to approve risk treatment plan
- D. The assessor concluded that all gaps should be logged and treated as high severity findings since the assessment was performed on a critical vendor
Answer: C
Explanation:
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:
* 1: Shared Assessments Certified Third Party Risk Professional (CTPRP) Study Guide, pages 29-30,
33-34
* 2: Third-Party Risk Management: Final Interagency Guidance, page 10
NEW QUESTION # 44
Which of the following is a positive aspect of adhering to a secure SDLC?
- A. A process that defines and meets both the business requirements and the security requirements
- B. A process that forces quality code repositories management
- C. Promotes a "check the box" compliance approach
- D. Enables the process if system code is managed in different IT silos
Answer: A
Explanation:
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:
* Reduce the risk of security breaches and incidents by identifying and mitigating vulnerabilities early and continuously
* Improve the quality and reliability of software products by ensuring that they meet both the functional and the security requirements
* Save time and money by avoiding costly rework, remediation, and reputation damage caused by security flaws
* Enhance customer trust and satisfaction by delivering secure and compliant software solutions
* Foster a culture of security awareness and responsibility among developers, testers, and other stakeholders References:
* Secure SDLC | Secure Software Development Life Cycle | Snyk
* What is Secure Software Development Life Cycle (SSDLC )? - GeeksforGeeks
NEW QUESTION # 45
When defining due diligence requirements for the set of vendors that host web applications which of the following is typically NOT part of evaluating the vendor's patch management controls?
- A. The capability of the vendor to apply priority patching of high-risk systems
- B. The existence of a formal process for evaluation and prioritization of known vulnerabilities
- C. A documented process to gain approvals for use of open source applications
- D. Established procedures for testing of patches, service packs, and hot fixes prior to installation
Answer: C
Explanation:
A documented process to gain approvals for use of open source applications is typically not part of evaluating the vendor's patch management controls, because it is not directly related to the patching process. Patch management controls are the policies, procedures, and tools that enable an organization to identify, acquire, install, and verify patches for software vulnerabilities. Patch management controls aim to reduce the risk of exploitation of known software flaws and ensure the functionality and compatibility of the patched systems. A documented process to gain approvals for use of open source applications is more relevant to the software development and procurement processes, as it involves assessing the legal, security, and operational implications of using open source software components in the vendor's products or services. Open source software may have different licensing terms, quality standards, and support levels than proprietary software, and may introduce additional vulnerabilities or dependencies that need to be managed. Therefore, a documented process to gain approvals for use of open source applications is a good practice for vendors, but it is not a patch management control per se. References:
* Guide to Enterprise Patch Management Planning
* Governance of Key Aspects of System Patch Management
* Certified Third Party Risk Professional (CTPRP) Study Guide
NEW QUESTION # 46
Which statement is FALSE when describing the third party risk assessors' role when conducting a controls evaluation using an industry framework?
- A. The Assessor's role is to conduct discovery and validate responses from the risk assessment questionnaire by testing or validating controls
- B. The Assessor's role is to review compliance artifacts and identify potential control gaps based on evaluation of the presence of control attributes
- C. The Assessor's role is to conduct discovery with subject matter experts to understand the control environment
- D. The Assessor's role is to provide an opinion on the effectiveness of controls conducted over a period of time in their report
Answer: D
Explanation:
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:
* 1: Shared Assessments Certified Third Party Risk Professional (CTPRP) Study Guide, page 29
* 2: What is a Third-Party Risk Assessment? - RiskOptics
NEW QUESTION # 47
Which statement is FALSE regarding background check requirements for vendors or service providers?
- A. Background check requirements may differ based on level of authority, risk, or job role
- B. Background checks should be performed prior to employment and may be updated after employment based upon criteria in HR policies
- C. Background check requirements are not applicable for vendors or service providers based outside the United States
- D. Background check requirements should be applied to employees, contract workers and temporary workers
Answer: C
Explanation:
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:
* Shared Assessments Program: Third Party Risk Management Fundamentals
* Background Checks for Contractors or Vendors
NEW QUESTION # 48
At which level of reporting are changes in TPRM program metrics rare and exceptional?
- A. Business unit
- B. Board of Directors
- C. Executive management
- D. Risk committee
Answer: B
Explanation:
TPRM program metrics are the indicators that measure the performance, effectiveness, and maturity of the TPRM program. They help to monitor and communicate the progress, achievements, and challenges of the TPRM program to various stakeholders, such as business units, executive management, risk committees, and board of directors. However, the level of reporting and the frequency of changes in TPRM program metrics vary depending on the stakeholder's role, responsibility, and interest123:
* Business unit: This level of reporting is focused on the operational aspects of the TPRM program, such as the status of vendor assessments, remediation actions, issues, and incidents. The changes in TPRM program metrics at this level are frequent and granular, as they reflect the day-to-day activities and outcomes of the TPRM program.
* Executive management: This level of reporting is focused on the strategic aspects of the TPRM program, such as the alignment with the business objectives, the compliance with the regulatory requirements, the management of the key risks, and the optimization of the resources and costs. The changes in TPRM program metrics at this level are less frequent and more aggregated, as they reflect the overall direction and performance of the TPRM program.
* Risk committee: This level of reporting is focused on the oversight aspects of the TPRM program, such as the evaluation of the risk appetite, the review of the risk profile, the approval of the risk policies, and the escalation of the risk issues. The changes in TPRM program metrics at this level are occasional and more analytical, as they reflect the governance and assurance of the TPRM program.
* Board of Directors: This level of reporting is focused on the advisory aspects of the TPRM program, such as the endorsement of the risk strategy, the awareness of the risk trends, the guidance of the risk culture, and the support of the risk initiatives. The changes in TPRM program metrics at this level are rare and exceptional, as they reflect the high-level and long-term vision and value of the TPRM program.
Therefore, the correct answer is D. Board of Directors, as this is the level of reporting where changes in TPRM program metrics are rare and exceptional. References:
* 1: 15 KPIs & Metrics to Measure the Success of Your TPRM Program | UpGuard
* 2: Third-party risk management metrics: Best practices to enhance your ... | Diligent
* 3: TPRM Metrics - Telling Your Risk Story - Shared Assessments | Shared Assessments
NEW QUESTION # 49
What attribute is MOST likely to be included in the software development lifecycle (SDLC) process?
- A. Scheduling the frequency of automated vulnerability scans
- B. Conducting peer code reviews
- C. Scanning for data input validation in production
- D. Defining the scope of annual penetration tests
Answer: B
Explanation:
Peer code reviews are an essential part of the software development lifecycle (SDLC) process, as they help to improve the quality, security, and maintainability of the code. Peer code reviews involve having other developers review the code written by a developer before it is merged into the main branch or deployed to production. Peer code reviews can help to identify and fix errors, bugs, vulnerabilities, performance issues, coding standards violations, design flaws, and other issues that may affect the functionality or usability of the software. Peer code reviews also facilitate knowledge sharing, collaboration, and feedback among the development team, which can enhance the skills and productivity of the developers123.
The other options are not as likely to be included in the SDLC process, as they are either performed at different stages or not directly related to the development of the software. Scheduling the frequency of automated vulnerability scans and defining the scope of annual penetration tests are more related to the security testing and monitoring of the software, which are usually done after the development phase or as part of the maintenance phase. Scanning for data input validation in production is also a security measure that is done after the software is deployed, and it is not a good practice to rely on production testing alone, as it may expose the software to potential attacks or data breaches. Data input validation should be done during the development and testing phases, as well as in production123. References:
* What is SDLC? - Software Development Lifecycle Explained - AWS
* Software Development Life Cycle (SDLC) - GeeksforGeeks
* What Is the Software Development Life Cycle? SDLC Explained | Coursera
NEW QUESTION # 50
Which of the following is NOT an example of a type of application security testing?
- A. Dynamic testing
- B. Cookie consent scanning
- C. Interactive testing
- D. Static testing
Answer: B
Explanation:
Application security testing (AST) is a process of finding and eliminating vulnerabilities in software applications. There are different types of AST tools that can help with this process, such as static, dynamic, and interactive testing. Static testing analyzes the source code of the application without executing it, dynamic testing simulates attacks on the running application from the outside, and interactive testing combines both static and dynamic analysis to find more vulnerabilities and provide more context. Cookie consent scanning is not a type of AST, but rather a tool that checks if a website complies with the cookie consent regulations, such as the EU General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA).
Cookie consent scanning does not test the security of the application, but rather the privacy and compliance of the website. References:
* 1: 10 Types of Application Security Testing Tools: When and How to Use Them
* 2: 5 Types of Application Security Testing You Must Know About
* 3: Types of Application Security Testing: Definitions and Differences
* 4: What is Application Security? | VMware Glossary
NEW QUESTION # 51
The primary disadvantage of Single Sign-On (SSO) access control is:
- A. Users store multiple passwords in a single repository limiting the ability to change the password
- B. The impact of a compromise of the end-user credential that provides access to multiple systems is greater
- C. A single password is easier to guess and be exploited
- D. Vendors must develop multiple methods to integrate system access adding cost and complexity
Answer: B
Explanation:
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:
* 1: What are the disadvantages of single sign-on authentication? - Information Security Stack Exchange
* 2: Single Sign-On Disadvantages: 6 Advantages and Disadvantages [What You Need to Know] - Mostly Blogging
* 3: SSO Security Risks: The Drawbacks of SSO (And What Can You Do About it) - Zluri
NEW QUESTION # 52
Which of the following components is NOT typically included in external continuous monitoring solutions?
- A. Metrics that track SLAs for performance management
- B. Alerts on legal and regulatory actions involving the vendor
- C. Reports that identify changes in vendor financial viability
- D. Status updates on localized events based on geolocation
Answer: A
Explanation:
External continuous monitoring solutions are tools or services that provide objective and timely data on the cybersecurity posture and performance of third-party vendors. They typically include components such as:
* Status updates on localized events based on geolocation, which can alert the organization to potential disruptions or incidents affecting the vendor's operations or infrastructure in a specific region or country12.
* Alerts on legal and regulatory actions involving the vendor, which can indicate the vendor's compliance status, reputation, or liability exposure13.
* Reports that identify changes in vendor financial viability, which can signal the vendor's ability to
* sustain its business operations, invest in security, or honor its contractual obligations14.
However, metrics that track SLAs for performance management are not typically included in external continuous monitoring solutions, as they are more relevant for internal monitoring and reporting. SLAs are service level agreements that define the expected quality, availability, and reliability of the vendor's services or products, as well as the penalties or remedies for non-compliance. SLAs are usually measured and reported by the vendor itself, or by a third-party auditor or assessor, based on the specific criteria and frequency agreed upon by the parties . Therefore, option C is the correct answer. References:
* Third Party Risk Management Framework, Module 5: Program Implementation, Section 5.2: Ongoing Monitoring, p. 32
* Bitsight Continuous Monitoring, Section: Uncover hidden risks
* Best-Practices Guidance for Third-Party Risk, Section: Monitor Third-Party Compliance with Regulations and Standards, p. 3
* Five Best Practices to Manage and Control Third-Party Risk, Section: Monitor Third-Party Financial Health, p. 4
* [Third Party Risk Management Framework], Module 4: Program Components, Section 4.3: Contracting, p. 24
* [A Better Way to Manage Third-Party Risk], Section: Establish clear service level agreements (SLAs) and key performance indicators (KPIs), p. 2
NEW QUESTION # 53
Which example is typically NOT included in a Business Impact Analysis (BIA)?
- A. Including any contractual or legal/regulatory requirements
- B. Identifying the criticality of applications
- C. Prioritization of business functions and processes
- D. Requiring vendor participation in testing
Answer: D
Explanation:
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
NEW QUESTION # 54
In which phase of the TPRM lifecycle should terms for return or destruction of data be defined and agreed upon?
- A. At third party selection and initial due diligence
- B. At termination and exit
- C. During contract negotiation
- D. When deploying ongoing monitoring
Answer: C
Explanation:
Terms for return or destruction of data should be defined and agreed upon during contract negotiation, as this is the phase where the organization and the third party establish the expectations, obligations, and responsibilities for the relationship, including the handling of data. According to the Shared Assessments CTPRP Study Guide, contract negotiation is the phase where "the organization and the third party negotiate and execute a contract that clearly defines the expectations and responsibilities of both parties, including the scope of work, service level agreements, performance measures, reporting requirements, compliance obligations, security and privacy controls, incident response procedures, dispute resolution mechanisms, termination rights, and other relevant terms and conditions."1 One of the key contractual terms that should be addressed is the return or destruction of data, which specifies how the third party will return or dispose of the organization's data at the end of the relationship, or upon request, in a secure and timely manner. This term is important for ensuring the organization's data protection, confidentiality, and compliance, as well as reducing the risk of data breaches, leaks, or misuse by the third party or unauthorized parties.
The other phases of the TPRM lifecycle are not the best choices for defining and agreeing upon terms for return or destruction of data, because:
* B. At third party selection and initial due diligence: This is the phase where the organization identifies, evaluates, and selects the third party that best meets its needs, objectives, and risk appetite. This phase involves conducting due diligence on the third party's capabilities, qualifications, reputation, performance, security, and compliance, as well as assessing the inherent risk of the relationship. While this phase is important for screening and choosing the right third party, it does not involve defining and agreeing upon the specific terms and conditions of the relationship, such as the return or destruction of data, which are usually done in the contract negotiation phase.
* C. When deploying ongoing monitoring: This is the phase where the organization monitors and reviews the third party's performance, service delivery, risk management, and compliance on a regular basis, as well as identifies and addresses any issues, gaps, or changes that may arise during the relationship. This phase involves collecting and analyzing data and information from various sources, such as reports, audits, assessments, surveys, feedback, incidents, and metrics, as well as communicating and collaborating with the third party to ensure alignment and improvement. While this phase is important for ensuring the quality and security of the relationship, it does not involve defining and agreeing upon the terms and conditions of the relationship, such as the return or destruction of data, which are usually done in the contract negotiation phase.
* D. At termination and exit: This is the phase where the organization terminates and exits the relationship with the third party, either by mutual agreement, expiration of contract, breach of contract, or other reasons. This phase involves executing the termination and exit plan, which may include notifying the
* third party, transferring or discontinuing the services, settling the financial obligations, returning or destroying the data, revoking the access rights, and conducting a post-termination review. While this phase is important for ensuring a smooth and secure transition and closure of the relationship, it does not involve defining and agreeing upon the terms and conditions of the relationship, such as the return or destruction of data, which are usually done in the contract negotiation phase.
References:
* 1: Shared Assessments CTPRP Study Guide, page 59, section 5.1: TPRM Lifecycle
* : Third-Party Risk Management: Vendor Contract Terms and Conditions, section: Data Ownership, Return and Destruction
* : [Third-Party Risk Management: The 3rd Party Ecosystem: How to Manage the Risk While Keeping the Benefit], section: Contract Negotiation
* : [Third-Party Risk Management: The 3rd Party Ecosystem: How to Manage the Risk While Keeping the Benefit], section: Termination and Exit
NEW QUESTION # 55
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