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CAS-004 Practice Question: A financial institution is adopting a new…
A financial institution is adopting a new vendor-managed SaaS platform for customer data processing. The CISO wants to ensure the vendor's security controls meet regulatory requirements before data is transferred. Which of the following should be completed FIRST?
⚠ Common exam trap
The trap here is that candidates often jump to technical testing (penetration test or vulnerability assessment) as the first step, overlooking that governance and compliance require a contractual and risk-based evaluation before any hands-on technical engagement is permitted.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Perform a third-party risk assessment.
Before transferring sensitive customer data to a new vendor-managed SaaS platform, the CISO must first perform a third-party risk assessment to evaluate the vendor's security posture against regulatory requirements (e.g., GDPR, PCI DSS). This assessment reviews the vendor's SOC 2 reports, ISO 27001 certification, and contractual security controls, ensuring compliance before any technical testing or data transfer occurs. Without this initial risk evaluation, subsequent technical controls like penetration tests or DLP may be premature or misaligned with regulatory obligations.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Execute a penetration test on the SaaS platform.
Why it's wrong here
Penetration testing requires authorisation and targets live systems, so it cannot precede the contractual and documentary assurance the CISO needs. It is tempting because testing validates controls empirically, and it would be correct after onboarding, as ongoing assurance of the SaaS platform.
- ✗
Implement data loss prevention controls.
Why it's wrong here
DLP inspects and blocks data flows after transfer, so it cannot verify vendor controls before data moves; the stem demands prior assurance. It is tempting because DLP protects customer data in motion, and it would be right when enforcing egress policy on data already resident in your own environment.
- ✗
Conduct a vulnerability assessment of the vendor's network.
Why it's wrong here
Scanning the vendor's network probes infrastructure, not the control documentation needed to evidence regulatory compliance before data moves. It is tempting because vulnerability assessment is a recognised assurance activity, and it would be correct for an internally hosted system under your own control.
- ✓
Perform a third-party risk assessment.
Why this is correct
A third-party risk assessment evaluates the vendor's security controls, compliance posture and data handling against regulatory requirements before any data is transferred. It identifies gaps and informs contractual safeguards, making it the necessary first step prior to onboarding the SaaS platform.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CAS-005 practice question is part of Courseiva's free CompTIA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CAS-005 exam.