CISM Information Security Programme Practice Question
An organization is designing a third-party risk management (TPRM) program. They have identified a vendor that stores sensitive customer data. According to best practices, what should be the minimum requirement for this vendor's contract?
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
✓
Contractual security requirements and right to audit
For vendors handling sensitive customer data, the contract must include security requirements such as data protection clauses, incident notification timelines, and the right to audit. This ensures contractual enforceability of security controls.
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 insurance certificate
Why it's wrong here
Insurance does not replace security requirements in the contract.
- ✗
Annual self-assessment questionnaire only
Why it's wrong here
Self-assessment alone is insufficient; contractual requirements are stronger.
- ✓
Contractual security requirements and right to audit
Why this is correct
Correct. Contracts should include security requirements and audit rights for high-risk vendors.
- ✗
SOC 2 Type II report without contractual clauses
Why it's wrong here
SOC 2 report is good, but without contractual clauses, enforcement is weak.
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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.