CCEP Third-Party Risk Management 2

Question 1

What is the recommended first step when onboarding a new third-party vendor?

Accepted Answer

Conducting a risk assessment to determine the appropriate level of due diligence

Answer

A risk assessment should be conducted first so that the scope and depth of due diligence are proportional to the risks the third party actually presents.

Question 2

Which type of third party typically requires the most rigorous due diligence under anti-corruption compliance frameworks?

Accepted Answer

Government-facing sales agents operating in high-risk countries

Answer

Government-facing sales agents in high-risk countries pose the greatest bribery and corruption risk, requiring the most intensive due diligence under laws like the FCPA and UK Bribery Act.

Question 3

What is 'fourth-party risk' in the context of third-party risk management?

Accepted Answer

Risk arising from sub-vendors or service providers that your direct third parties engage

Answer

Fourth-party risk refers to risks arising from the sub-vendors or downstream service providers engaged by your direct third parties, creating extended supply chain exposure beyond your immediate vendor relationships.

Question 4

How does the EU General Data Protection Regulation (GDPR) specifically affect third-party risk management?

Accepted Answer

It requires companies to execute Data Processing Agreements with third parties that handle personal data

Answer

GDPR requires companies to enter into Data Processing Agreements (DPAs) with third parties that process personal data, ensuring appropriate data protection obligations and accountability are contractually established.

Question 5

What action should a compliance team take if a third party fails a compliance audit?

Accepted Answer

Assess the severity of findings, require remediation, and decide whether to continue the relationship

Answer

When a third party fails a compliance audit, the appropriate response is to assess severity, require corrective action where feasible, and make a risk-informed decision about whether to continue the relationship.

(CCEP) Certified Compliance and Ethics Professional Practice Test

(CCEP) Certified Compliance and Ethics Professional Practice Test

CCEP Third-Party Risk Management 2