CISM Information Security Programme Practice Question
An organization is implementing a vendor tiering program for third-party risk management. Which TWO criteria should be used to classify vendors into high, medium, or low risk tiers? (Select TWO)
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 accessed
Data access and service criticality directly affect the potential impact of a vendor compromise.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Length of contract
Why it's wrong here
Contract duration is not a risk criterion.
- ✓
Type and sensitivity of data accessed
Why this is correct
Determines potential impact if data is breached.
- ✗
Vendor's annual revenue
Why it's wrong here
Revenue does not correlate with risk.
- ✓
Criticality of service provided
Why this is correct
Affects business continuity if service is disrupted.
- ✗
Vendor's geographic location
Why it's wrong here
Location may be a factor but not primary.
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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.