SY0-701 Security Program Management and Oversight Practice Question
A supplier tells your company it wants to use a new subcontractor to process customer data. What is the BEST contract control to reduce this risk?
⚠ Common exam trap
Test-takers frequently assume 'vendor remains responsible' (Option B) is sufficient, but the exam tests the understanding that contractual responsibility does not eliminate the need for proactive risk assessment and notification controls to prevent unauthorized data exposure.
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
✓
Require the vendor to notify the company before adding subcontractors
Requiring the vendor to notify the company before adding subcontractors is the best contract control because it ensures the company retains visibility and approval authority over any third party that will process customer data. This aligns with the principle of due diligence and third-party risk management, as the company can assess the subcontractor's security posture before data is shared. Without such a clause, the vendor could unilaterally introduce a subcontractor with inadequate security controls, increasing the risk of a data breach or compliance violation.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Require the vendor to notify the company before adding subcontractors
Why this is correct
Notification requirements help the company know when the supplier changes its processing model, especially when customer data may move to a new organization. This gives security, legal, and privacy teams a chance to review the new arrangement, confirm acceptable terms, and decide whether additional controls or approval are needed before the change takes effect.
- ✗
Allow subcontractors without review if the vendor remains responsible
Why it's wrong here
Even if the vendor remains contractually liable, a new subcontractor has its own people, processes, and technology stack that can expose customer data to unvetted risks. Accountability after a breach does not prevent the breach, and the prime vendor may lack direct operational control over the subcontractor's daily security practices. Requiring review and acceptance of subcontractors is the only way to ensure equivalent security controls are contractually flowed down and verified.
- ✗
Only require a verbal promise that the subcontractor is secure
Why it's wrong here
A verbal assurance is unverifiable and creates no enforceable obligation, making it impossible for the company to audit the subcontractor's controls or demand remediation if security gaps emerge. Without a written commitment specifying required safeguards, data-handling rules, breach notification duties, or audit rights, the company has no contractual lever to enforce accountability. Security assurances must be documented, reviewed, and tied to specific technical requirements to be meaningful in a supply chain risk assessment.
- ✗
Remove all contract language related to third parties
Why it's wrong here
Deleting third-party language strips away the contractual basis for defining security expectations, data ownership, and liability when a vendor engages external entities. This leaves the company without visibility into changes in the processing ecosystem and without a mechanism to enforce access controls, encryption, or breach reporting on downstream parties. Contract clauses are the primary tool for implementing due diligence and maintaining an accurate software supply chain map, so removing them would directly undermine the third-party risk management program.
Go deeper
Related to this question
Learn chapter
Risk Management Concepts
Key term
Security
Security in IT is the practice of protecting systems, networks, and data from unauthorized access, damage, or theft.
Key term
Security posture
An organization's overall cybersecurity strength, including policies, controls, and readiness to defend against and respond to threats.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This SY0-701 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 SY0-701 exam.