CSC - Cybersecurity Compliance Third-Party Vendor Compliance Questions and Answers

Question 1

A financial services company is onboarding a new cloud-based software-as-a-service (SaaS) provider to handle sensitive customer data.
Which of the following is the MOST critical step to perform before finalizing the contract?

Accepted Answer

Conduct a thorough due diligence review of the vendor's security and compliance posture.

Answer

Negotiate a lower price based on a long-term commitment.

Answer

Ensure the provider's service level agreement (SLA) guarantees 99.99% uptime.

Answer

Request a list of the provider's other clients to verify their market reputation.

Question 2

Which of the following contractual clauses is most effective for ensuring an organization can verify a vendor's ongoing adherence to stated security policies?

Accepted Answer

Right to Audit

Answer

Confidentiality Agreement

Answer

Limitation of Liability

Answer

Service Level Agreement (SLA)

Question 3

A compliance officer is developing a third-party risk management program. According to best practices, how should the frequency and intensity of vendor monitoring be determined?

Accepted Answer

Monitoring intensity should be based on a risk-based approach, with critical vendors receiving more frequent and in-depth reviews.

Answer

All vendors should be monitored on a strict quarterly basis, regardless of their function.

Answer

The vendor's contract value should be the sole determinant of monitoring frequency.

Answer

Monitoring should only occur after a security incident has been reported by the vendor.

Question 4

During the vendor offboarding process, what is a critical cybersecurity compliance step to prevent future data breaches?

Accepted Answer

Ensuring all access rights to systems and data are immediately and completely revoked.

Answer

Obtaining a final invoice and processing the payment.

Answer

Conducting an exit interview with the vendor's primary contact.

Answer

Archiving all email communications with the vendor.

Question 5

Which of the following frameworks provides a comprehensive set of security and privacy controls that can be used to establish compliance requirements for third-party vendors?

Accepted Answer

NIST SP 800-53

Answer

ITIL (Information Technology Infrastructure Library)

Answer

COBIT (Control Objectives for Information and Related Technologies)

Answer

Scrum

Question 6

A company discovers that a critical third-party vendor has suffered a data breach, but the company was not notified for over a month. Which part of the third-party compliance process MOST likely failed?

Accepted Answer

Contract negotiation and inclusion of specific security clauses.

Answer

Initial due diligence and risk assessment.

Answer

Continuous performance monitoring against the SLA.

Answer

Vendor selection and onboarding procedures.

A financial services company is onboarding a new cloud-based software-as-a-service (SaaS) provider to handle sensitive customer data.Which of the following is the MOST critical step to perform before finalizing the contract?

A financial services company is onboarding a new cloud-based software-as-a-service (SaaS) provider to handle sensitive customer data.
Which of the following is the MOST critical step to perform before finalizing the contract?