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

OCC Bulletin 2013-29 provides comprehensive guidance for national banks and federal savings associations on managing risks associated with third-party relationships.

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

A vendor exit plan ensures business continuity by documenting steps to migrate to an alternative provider while maintaining regulatory compliance obligations.

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

A SOC 2 Type II report, issued by an independent auditor, attests to the design and operating effectiveness of a service organization's controls over time.

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

Data processing agreements define how a vendor may collect, use, store, and protect personal data, which is a contractual requirement under many privacy regulations.

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 holds companies accountable for deceptive or unfair acts carried out by third parties acting on their behalf, including marketing vendors.

(RCC) Regulatory Compliance Certification Practice Test

(RCC) Regulatory Compliance Certification Practice Test

RCC RCC Third-Party and Vendor Compliance Management 2