CISM Information Security Programme Practice Question
A company is designing a third-party risk management (TPRM) program. Which factor should PRIMARILY determine the tier of a vendor?
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
✓
Type of data accessed and service criticality
Vendor tiering should be based on the risk they pose. Data access and service criticality directly affect organizational risk.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Vendor's annual revenue
Why it's wrong here
Vendor size is not a direct measure of risk to your data.
- ✗
Length of business relationship
Why it's wrong here
History does not replace risk assessment.
- ✗
Contract value
Why it's wrong here
Financial value does not necessarily correlate with security risk.
- ✓
Type of data accessed and service criticality
Why this is correct
Risk is driven by data sensitivity and business impact.
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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.