- A
Contract compliance reviews
Ensuring vendors meet contractual security requirements is essential.
- B
Ongoing monitoring via annual reassessments
Continuous or periodic monitoring ensures risk posture is maintained.
- C
Review of vendor's cyber insurance policy
Why wrong: Insurance is a transfer mechanism, not a core component of risk assessment.
- D
Initial onboarding assessment including security questionnaires
Onboarding assessment is critical to evaluate risks before engagement.
- E
Vendor self-assessment without validation
Why wrong: Self-assessment without validation may be unreliable.
Question 989 of 1,000
CRISC Risk Response and Reporting Practice Question
This CRISC practice question tests your understanding of risk response and reporting. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A financial services company is implementing a vendor risk management program. Which THREE of the following are key components of an effective vendor risk assessment process? (Select THREE)
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
✓
Contract compliance reviews
Contract compliance reviews (A) are a key component because they verify that vendors are meeting agreed-upon service level agreements (SLAs), security clauses, and regulatory requirements. This ensures that contractual obligations, such as data protection standards and incident response timelines, are being enforced and that any deviations are identified and remediated. Without this review, the organization cannot confirm that the vendor's actual practices align with the risk posture agreed upon during onboarding.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Contract compliance reviews
Why this is correct
Ensuring vendors meet contractual security requirements is essential.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Ongoing monitoring via annual reassessments
Why this is correct
Continuous or periodic monitoring ensures risk posture is maintained.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Review of vendor's cyber insurance policy
Why it's wrong here
Insurance is a transfer mechanism, not a core component of risk assessment.
- ✓
Initial onboarding assessment including security questionnaires
Why this is correct
Onboarding assessment is critical to evaluate risks before engagement.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Vendor self-assessment without validation
Why it's wrong here
Self-assessment without validation may be unreliable.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse risk transfer mechanisms (like cyber insurance) with risk assessment activities, leading them to select option C, when in fact insurance does not evaluate the vendor's actual security posture or operational risk.
Detailed technical explanation
How to think about this question
Under the hood, a vendor risk assessment typically follows a tiered approach based on the vendor's criticality and data access, using frameworks like NIST SP 800-53 or ISO 27001 controls. The initial onboarding assessment (D) often includes security questionnaires mapped to these controls, while ongoing monitoring (B) should be risk-based and may include continuous monitoring tools (e.g., security ratings from BitSight or SecurityScorecard) rather than just annual reassessments, which can miss rapid changes in a vendor's threat landscape. In a real-world scenario, a financial services firm might require quarterly reassessments for high-risk vendors handling personally identifiable information (PII) to comply with regulations like PCI DSS or GDPR.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the CRISC exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
- →
Risk Response and Reporting — study guide chapter
Learn the concepts, then practise the questions
- →
Risk Response and Reporting practice questions
Targeted practice on this topic area only
- →
All CRISC questions
1,000 questions across all exam domains
- →
Certified in Risk and Information Systems Control CRISC study guide
Full concept coverage aligned to exam objectives
- →
CRISC practice test guide
How to use practice tests most effectively before exam day
Related practice questions
Related CRISC practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
IT Risk Identification practice questions
Practise CRISC questions linked to IT Risk Identification.
IT Risk Assessment practice questions
Practise CRISC questions linked to IT Risk Assessment.
Risk Response and Reporting practice questions
Practise CRISC questions linked to Risk Response and Reporting.
Information Technology and Security practice questions
Practise CRISC questions linked to Information Technology and Security.
Risk Response and Mitigation practice questions
Practise CRISC questions linked to Risk Response and Mitigation.
Risk and Control Monitoring and Reporting practice questions
Practise CRISC questions linked to Risk and Control Monitoring and Reporting.
CRISC fundamentals practice questions
Practise CRISC questions linked to CRISC fundamentals.
CRISC scenario practice questions
Practise CRISC questions linked to CRISC scenario.
CRISC troubleshooting practice questions
Practise CRISC questions linked to CRISC troubleshooting.
Practice this exam
Start a free CRISC practice session
Short sessions build daily habit. Longer sessions build exam-day stamina. Try a timed session to simulate real conditions.
FAQ
Questions learners often ask
What does this CRISC question test?
Risk Response and Reporting — This question tests Risk Response and Reporting — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Contract compliance reviews — Contract compliance reviews (A) are a key component because they verify that vendors are meeting agreed-upon service level agreements (SLAs), security clauses, and regulatory requirements. This ensures that contractual obligations, such as data protection standards and incident response timelines, are being enforced and that any deviations are identified and remediated. Without this review, the organization cannot confirm that the vendor's actual practices align with the risk posture agreed upon during onboarding.
What should I do if I get this CRISC question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Last reviewed: Jul 4, 2026
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.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.