CCEP Third-Party Risk Management

Question 1

What is a fundamental component of an effective third-party risk management (TPRM) program?

Accepted Answer

Conducting thorough due diligence before engaging third parties

Answer

Limiting all business to direct employees only

Answer

Delegating all compliance responsibilities to the third party

Answer

Performing due diligence only after a compliance incident occurs

Question 2

Under the Foreign Corrupt Practices Act (FCPA), which party can be held liable for bribes paid by a third-party agent to a foreign official?

Accepted Answer

The U.S. company that retained the agent, if it knew or had reason to know

Answer

Only the third-party agent who paid the bribe

Answer

Only the foreign official who accepted the bribe

Answer

The SEC, as the investigating and prosecuting body

Question 3

Which of the following is considered a 'red flag' during third-party due diligence?

Accepted Answer

The vendor requests unusually large upfront payments with no clear business justification

Answer

The vendor has a documented code of conduct and training program

Answer

The vendor's fee structure is reasonable and consistent with market rates

Answer

The vendor provides verifiable references upon request

Question 4

What is the primary purpose of ongoing monitoring of third-party relationships?

Accepted Answer

To ensure third parties continue to meet compliance standards throughout the relationship

Answer

To renegotiate contract terms on an annual basis

Answer

To replace the need for due diligence at initial onboarding

Answer

To reduce the overall number of approved vendors

Question 5

What should compliance clauses in third-party contracts typically require?

Accepted Answer

That the third party comply with applicable laws and the company's code of conduct

Answer

That the third party waive its right to request audits

Answer

That the company assume all liability for third-party misconduct

Answer

That the third party be granted access to all proprietary company information

Question 6

Which factor is most important when risk-tiering third-party relationships for due diligence purposes?

Accepted Answer

The level of access the vendor has to sensitive data, company funds, or government officials

Answer

The geographic location of the vendor's corporate headquarters

Answer

The number of years the vendor has been in business

Answer

The total number of full-time employees the vendor has

Question 7

Which document is most commonly used during third-party onboarding to gather structured information about a vendor's compliance practices and risk profile?

Accepted Answer

A due diligence questionnaire

Answer

A standard purchase order

Answer

A mutual nondisclosure agreement

Answer

A letter of intent to contract