CISM Information Security Programme Practice Question
An organization is implementing a third-party risk management (TPRM) program. Which approach best addresses nth-party risk?
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
✓
Requiring that key vendors include security requirements in contracts with their subcontractors
Nth-party risk refers to risks from suppliers of your suppliers. Contractual requirements that cascade down the supply chain are essential to manage this 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.
- ✓
Requiring that key vendors include security requirements in contracts with their subcontractors
Why this is correct
Cascading requirements help mitigate nth-party risk.
- ✗
Performing on-site audits of all third parties
Why it's wrong here
This is resource-intensive and still may not cover all sub-suppliers.
- ✗
Accepting the risk since it is outside the organization's control
Why it's wrong here
Risk acceptance is an option but should be based on assessment, not default.
- ✗
Conducting annual assessments of all direct vendors only
Why it's wrong here
This ignores the risks from sub-suppliers.
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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.