CISM Information Security Programme Practice Question
A company is assessing nth-party risk from a critical cloud provider. Which approach should be taken to manage this risk effectively?
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 cloud provider to contractually manage and report on their subcontractors
Managing nth-party risk requires understanding the cloud provider's supply chain. Contractual requirements for the provider to manage their subcontractors and regular audits help mitigate downstream risks.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Replace the cloud provider with an in-house solution
Why it's wrong here
Too drastic and may not be feasible.
- ✗
Conduct a direct audit of the provider's subcontractors
Why it's wrong here
Direct audit may be impractical; contractual requirements are more effective.
- ✗
Ignore nth-party risk as it is out of scope
Why it's wrong here
Ignoring risk is not acceptable; nth-party risk can impact the organization.
- ✓
Require the cloud provider to contractually manage and report on their subcontractors
Why this is correct
Correct. This extends risk management to the provider's supply chain.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CISM practice question is part of Courseiva's free ISACA 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 CISM exam.