CISM Information Security Programme Practice Question
An organization is designing a vendor tiering process for its third-party risk management program. Which TWO factors are MOST appropriate for determining a vendor's risk tier?
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 and sensitivity of data the vendor accesses
Data access and service criticality are primary factors for tiering vendors.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Type and sensitivity of data the vendor accesses
Why this is correct
High sensitivity data increases risk.
- ✗
Vendor's geographic location
Why it's wrong here
Location may be considered but not primary.
- ✗
Number of employees at the vendor
Why it's wrong here
Size is not a primary factor.
- ✗
Vendor's annual revenue
Why it's wrong here
Revenue is not a direct indicator of risk.
- ✓
Criticality of the vendor's service to business operations
Why this is correct
Critical services require higher scrutiny.
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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.