CISM Information Security Programme Practice Question
During a third-party risk assessment, the security team discovers that a critical vendor has subcontracted data processing to another company without notification. This represents which type of 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
✓
Nth-party risk
Nth-party risk refers to risks from suppliers of your suppliers, which can be overlooked.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Nth-party risk
Why this is correct
Nth-party risk covers risks from subcontractors or suppliers further down the chain.
- ✗
Fourth-party risk
Why it's wrong here
This is a general term; nth-party is more specific.
- ✗
Inherent risk
Why it's wrong here
Inherent risk is the risk before controls; this is about the supply chain.
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Residual risk
Why it's wrong here
Residual risk is after controls; this is about an unmanaged risk.
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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.