CAS-004 Governance, Risk, and Compliance Practice Question
An organization discovers that a third-party vendor has a subcontractor that processes its data. The organization did not have a contract with the subcontractor. This is an example of which type of risk?
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
✓
Fourth-party risk
Fourth-party risk is the risk that arises from a vendor's use of subcontractors, which may not be directly managed by the organization.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Residual risk
Why it's wrong here
Residual risk is risk remaining after controls, not this scenario.
- ✗
Third-party risk
Why it's wrong here
Third-party risk relates to the direct vendor, not the subcontractor.
- ✓
Fourth-party risk
Why this is correct
Fourth-party risk involves vendors of your vendors.
- ✗
Supply chain risk
Why it's wrong here
Supply chain risk is broader, but fourth-party is more specific.
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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.