CRISC IT Risk Identification Practice Question
A company is implementing a risk identification process for third-party risks. Which THREE factors should be considered when identifying risks from a critical software vendor?
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
✓
Vendor's compliance with relevant regulations
Financial health affects vendor stability, regulatory compliance affects legal risk, and security incidents affect operational risk. Service level agreements are contractual, not risk factors per se.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Number of employees at vendor
Why it's wrong here
Employee count is not directly a risk factor.
- ✓
Vendor's compliance with relevant regulations
Why this is correct
Non-compliance can result in liability for the organization.
- ✗
Service level agreements (SLAs)
Why it's wrong here
SLAs define performance but are not risk factors themselves.
- ✓
Vendor's history of security incidents
Why this is correct
Past incidents indicate potential future risk.
- ✓
Vendor's financial stability
Why this is correct
Financial instability can lead to service disruption.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CRISC 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 CRISC exam.