CISM Information Security Programme Practice Question
During a third-party risk assessment, the security team discovers that a critical vendor's sub-supplier (nth party) has access to sensitive data. The vendor contract does not address nth-party risk. What is the BEST course of action?
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
✓
Revise the contract to require the vendor to flow down security requirements to sub-suppliers
The organization should require the vendor to contractually manage nth-party risks, as the organization's data is still at 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.
- ✗
Accept the risk because the vendor is contractually responsible
Why it's wrong here
The organization still bears the ultimate risk.
- ✓
Revise the contract to require the vendor to flow down security requirements to sub-suppliers
Why this is correct
This ensures the vendor manages nth-party risks contractually.
- ✗
Perform an on-site assessment of the sub-supplier
Why it's wrong here
This is intrusive and may be outside the organization's authority.
- ✗
Request that the vendor terminate the sub-supplier relationship
Why it's wrong here
This may not be feasible and could disrupt services.
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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.