RCC RCC Third-Party and Vendor Compliance Management 2

Question 1

Which regulatory guidance document addresses vendor management obligations for US financial institutions?

Accepted Answer

OCC Bulletin 2013-29 on Third-Party Relationships

Answer

OSHA 29 CFR 1910

Answer

EPA Clean Air Act regulations

Answer

SEC Regulation FD

Question 2

When a critical vendor announces it is going out of business, the compliance officer's IMMEDIATE priority should be to:

Accepted Answer

Activate the organization's vendor exit and contingency plan

Answer

File a complaint with the vendor's regulator

Answer

Terminate all services immediately

Answer

Wait for the vendor to provide further instructions

Question 3

What is the purpose of a vendor's SOC 2 Type II report in compliance due diligence?

Accepted Answer

To provide evidence that the vendor's controls have been operating effectively over a defined period

Answer

To confirm the vendor's financial solvency

Answer

To verify the vendor's marketing claims

Answer

To assess the vendor's environmental compliance

Question 4

Which element of a vendor contract MOST directly supports compliance with data privacy regulations like CCPA or HIPAA?

Accepted Answer

Data processing agreements and data security requirements

Answer

A payment terms clause

Answer

A force majeure clause

Answer

An exclusivity provision

Question 5

An organization discovers that its marketing vendor is engaging in deceptive practices with consumers. Under FTC enforcement principles, the organization may face liability because:

Accepted Answer

Companies are responsible for acts and practices performed by agents acting on their behalf

Answer

The FTC only pursues vendors, not their clients

Answer

Marketing activities are exempt from FTC jurisdiction

Answer

Vendor liability only applies to financial services firms

Question 6

What is a Vendor Risk Management (VRM) program PRIMARILY designed to do?

Accepted Answer

Identify, assess, and mitigate risks posed by third-party relationships across their lifecycle

Answer

Negotiate lower vendor prices

Answer

Automate vendor invoice processing

Answer

Manage internal employee performance reviews