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Risk Response and ReportinghardMultiple SelectObjective-mapped

CRISC Risk Response and Reporting Practice Question

A risk manager is designing a third-party risk management program. Which THREE factors should be considered when determining the risk tier of a 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

The type of data the vendor will access

Data access, service criticality, and the vendor's security posture are key factors in risk tiering.

Answer analysis

Option-by-option breakdown

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

  • The vendor's physical location

    Why it's wrong here

    Location may be relevant for legal reasons but not primary.

  • The type of data the vendor will access

    Why this is correct

    Data sensitivity is a primary factor.

  • The vendor's annual revenue

    Why it's wrong here

    Revenue is not directly relevant to risk tier.

  • The vendor's security certifications and audit results

    Why this is correct

    Security posture evidence influences tier.

  • The criticality of the service provided

    Why this is correct

    Service criticality to business operations is key.

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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.