RCC RCC Third-Party and Vendor Compliance Management 3

Question 1

During ongoing vendor monitoring, which indicator would MOST concern a compliance officer?

Accepted Answer

The vendor received a regulatory enforcement action from its primary regulator

Answer

The vendor increased its staff headcount by 10%

Answer

The vendor launched a new product line

Answer

The vendor changed its billing software

Question 2

Which practice BEST helps prevent vendor compliance fatigue from questionnaire overload?

Accepted Answer

Adopting standardized industry questionnaires like SIG or CAIQ

Answer

Eliminating all vendor questionnaires

Answer

Requiring vendors to answer new custom questions annually

Answer

Limiting all assessments to phone calls

Question 3

A vendor compliance scorecard is MOST useful for:

Accepted Answer

Tracking vendor performance against defined compliance metrics over time

Answer

Replacing contractual obligations with informal agreements

Answer

Satisfying annual shareholder reports

Answer

Comparing vendor salary structures

Question 4

What is the primary compliance risk of 'vendor concentration'?

Accepted Answer

Over-reliance on a single vendor creating a single point of regulatory or operational failure

Answer

Vendors charging excessive fees

Answer

Too many vendors diluting compliance oversight

Answer

Vendors that are geographically concentrated

Question 5

Which phase of the vendor lifecycle is MOST often overlooked in compliance programs?

Accepted Answer

Offboarding and data return or destruction

Answer

Initial due diligence

Answer

Contract negotiation

Answer

Ongoing performance monitoring

Question 6

Under HIPAA, a Business Associate Agreement (BAA) is required when a vendor:

Accepted Answer

Creates, receives, maintains, or transmits protected health information on behalf of a covered entity

Answer

Provides general IT support unrelated to patient data

Answer

Sells medical equipment

Answer

Provides cleaning services to a hospital