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CRISC Practice Question: A financial institution uses a third-party cloud…
A financial institution uses a third-party cloud service for data analytics. The service has access to non-public personal information (NPI). During a risk assessment, the risk manager discovers that the cloud provider uses subprocessors without notifying the institution. The contract does not require notification of subprocessor changes. What should the risk manager do FIRST?
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
✓
Notify the vendor of the contract breach and request a list of all subprocessors and their compliance certifications.
The first step is to notify the vendor of the contract breach and request a list of all subprocessors to assess the risk. Option B is wrong because reporting to the data protection authority before attempting to resolve the issue with the vendor is premature. Option C is wrong because accepting risk without understanding the subprocessors' controls is not prudent; the risk manager should first gather information. Option D is wrong because immediately terminating the contract could cause significant business disruption and is not the first step.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Notify the vendor of the contract breach and request a list of all subprocessors and their compliance certifications.
Why this is correct
Immediate termination may disrupt operations; the first step should be to notify the vendor of the breach and request a list of subprocessors to assess risk.
- ✗
Report the incident to the data protection authority as a breach of contract.
Why it's wrong here
Accepting risk without understanding the subprocessors' controls is not prudent.
- ✗
Accept the risk since the vendor remains SOC 2 Type II certified.
Why it's wrong here
The risk manager should first gather information.
- ✗
Terminate the contract immediately to mitigate the risk of unauthorized data access.
Why it's wrong here
Immediately terminating the contract could cause significant business disruption.
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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.