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CRISC Practice Question: A multinational organization uses a third-party…

A multinational organization uses a third-party vendor for cloud-based identity management. The vendor recently suffered a data breach that exposed user credentials. The risk manager is now re-evaluating the associated risk. Which of the following steps should the risk manager perform FIRST to identify potential new risks?

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

Update the risk register to include the new threat scenario of credential compromise via the vendor.

After a vendor data breach, the risk manager's first step in risk identification is to update the risk register with the newly realized threat scenario—credential compromise via the vendor. This ensures that the organization formally captures and assesses the risk, enabling subsequent analysis and response. Option A (contract review) is a response step, not identification. Option C (revoking access) is a reactive control. Option D (penetration test) is a later step for validating controls, not the first identification action.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Review the contract to determine if the vendor is liable for the breach.

    Why it's wrong here

    Contract review is important but should follow identification and assessment of new risks.

  • Update the risk register to include the new threat scenario of credential compromise via the vendor.

    Why this is correct

    Updating the risk register is the first step in risk identification after a new event.

  • Immediately revoke all vendor access to internal systems.

    Why it's wrong here

    Revoking access may be a reactive control, not a risk identification step.

  • Conduct a penetration test of the organization's own systems.

    Why it's wrong here

    This focuses internally, but the risk is from the vendor, so testing vendor systems is not under the organization's control.

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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.