Shared Assessments CTPRP Certification Exam Dumps with 125 Practice Test Questions
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NEW QUESTION # 20
Which statement BEST represents the primary objective of a third party risk assessment:
- A. To determine the scope of the business relationship
- B. To validate that the vendor/service provider has adequate controls in place based on the organization's risk posture
- C. To evaluate the risk posture of all vendors/service providers in the vendor inventory
- D. To assess the appropriateness of non-disclosure agreements regarding the organization's systems/data
Answer: B
Explanation:
The primary objective of a third party risk assessment is to validate that the vendor/service provider has adequate controls in place based on the organization's risk posture. A third party risk assessment (also known as supplier risk assessment) quantifies the risks associated with third-party vendors and suppliers that provide products or services to your organization1. This assessment is useful for analyzing both new and ongoing supplier relationships. The growing risk of supply chain attacks makes it critical to conduct thorough and regular risk assessments of your third parties. A third party risk assessment helps you identify, measure, and mitigate the potential risks that your third parties pose to your organization, such as data breaches, cyberattacks, compliance violations, operational disruptions, reputational damage, or financial losses. A third party risk assessment also helps you align your third party risk management (TPRM) program with your organization's risk appetite, policies, standards, and procedures. A third party risk assessment typically involves the following steps1:
* Scoping: Define the scope of the assessment based on the type, nature, and criticality of the third party relationship. Determine the relevant risk domains, such as security, privacy, compliance, business continuity, etc.
* Data collection: Gather information from the third party using various methods, such as questionnaires, surveys, interviews, audits, tests, or evidence reviews.
* Analysis: Analyze the data collected and compare it with your organization's risk criteria, benchmarks, and best practices. Identify any gaps, weaknesses, or issues in the third party's controls, processes, or performance.
* Reporting: Document the findings and recommendations of the assessment in a clear and concise report.
Communicate the results to the relevant stakeholders, such as senior management, business owners, or regulators.
* Remediation: Follow up with the third party to ensure that they implement the necessary actions to address the identified risks. Monitor and track the progress and effectiveness of the remediation plan.
* Review: Review and update the assessment periodically or whenever there are significant changes in the third party relationship, the risk environment, or the regulatory requirements.
The other statements are not the primary objective of a third party risk assessment, although they may be related or secondary objectives. Assessing the appropriateness of non-disclosure agreements regarding the organization's systems/data is a legal objective that may be part of the contract negotiation or review process.
Determining the scope of the business relationship is a strategic objective that may be part of the vendor selection or due diligence process. Evaluating the risk posture of all vendors/service providers in the vendor inventory is a holistic objective that may be part of the vendor risk management or governance process.
References:
* 1: Third-Party Risk Assessment: A Practical Guide - BlueVoyant
* : What Is Third-Party Risk Management (TPRM)? 2024 Guide | UpGuard
* : What is Third-Party Risk Management? | Blog | OneTrust
NEW QUESTION # 21
Which statement does NOT reflect current practice in addressing fourth party risk or subcontracting risk?
- A. Third party contracts should include capturing, maintaining, and tracking authorized subcontractors
- B. Outsourcers should rely on requesting and reviewing external audit reports to address subcontracting risk
- C. Third party contracts and agreements should require prior notice and approval for subcontracting
- D. Outsourcers should inspect the vendor's TPRM program and require evidence of the assessments of subcontractors
Answer: B
Explanation:
This statement does not reflect current practice in addressing fourth party risk or subcontracting risk because it is not sufficient to rely on external audit reports alone. Outsourcers should also perform their own due diligence and monitoring of the subcontractors, as well as ensure that the third party has a robust TPRM program in place. External audit reports may not cover all the relevant aspects of subcontracting risk, such as data security, compliance, performance, and quality. Moreover, external audit reports may not be timely, accurate, or consistent, and may not reflect the current state of the subcontractor's operations. Therefore, outsourcers should adopt a more proactive and comprehensive approach to managing subcontracting risk, rather than relying on external audit reports. References:
* Shared Assessments Program, page 13: "Outsourcers should not rely solely on external audit reports to address subcontracting risk. Outsourcers should also inspect the vendor's TPRM program and require evidence of the assessments of subcontractors."
* Five Best Practices to Manage and Control Third-Party Risk, page 3: "Restricting privileged accounts
NEW QUESTION # 22
Physical access procedures and activity logs should require all of the following EXCEPT:
- A. Require physical access logs to be retained indefinitely for audit purposes
- B. Require multiple access controls for server rooms and data centers
- C. Record successful and unsuccessful attempts including investigation of unsuccessful access attempts
- D. Include a process to trigger review of the logs after security events
Answer: A
Explanation:
Physical access procedures and activity logs are important components of third-party risk management, as they help to ensure the security and integrity of the physical assets and data of the organization and its third parties.
However, requiring physical access logs to be retained indefinitely for audit purposes is not a best practice, as it may pose legal, regulatory, and operational challenges. According to the Supplemental Examination Procedures for Risk Management of Third-Party Relationships, physical access logs should be retained for a reasonable period of time, consistent with the organization's policies and procedures, and in compliance with applicable laws and regulations1. Retaining physical access logs indefinitely may increase the risk of unauthorized access, data breaches, privacy violations, and litigation2. Therefore, the statement B is the correct answer, as it is the only one that does not reflect a best practice for physical access procedures and activity logs.
References:
* 1: How to Write Third-Party Risk Management (TPRM) Policies and Procedures - SecurityScorecard Blog
* 2: Five Best Practices to Manage and Control Third-Party Risk - Broadcom Inc.
* 3: A checklist for third-party risk management platforms - Crowe LLP
* 4: Supplemental Examination Procedures for Risk Management of Third-Party Relationships
* 5: Third Party Risk Management: Why It's Important And What Features To Look For - Expert Insights
NEW QUESTION # 23
Which of the following actions is an early step when triggering an Information Security Incident Response Program?
- A. Assessing the vendor's Business Impact Analysis (BIA) for resuming operations
- B. Implementing processes for emergency change control approvals
- C. Requiring periodic changes to the vendor's contract for breach notification
- D. Initiating an investigation of the unauthorized disclosure of data
Answer: D
Explanation:
According to the NIST Computer Security Incident Handling Guide1, one of the first steps in responding to an incident is to identify the scope, nature, and source of the incident. This involves gathering evidence, analyzing logs, interviewing witnesses, and performing forensic analysis. The goal is to determine the extent of the compromise, the type of attack, the identity or location of the attacker, and the potential impact on the organization and its stakeholders. This step is essential for containing the incident, mitigating the damage, and preventing further escalation or recurrence. References:
* NIST Computer Security Incident Handling Guide1, Section 3.2.2 Identification
* Cisco What Is an Incident Response Plan for IT?2, Section 2. Respond
* CrowdStrike Incident Response [Beginner's Guide]3, Section 3. Incident Response Steps
NEW QUESTION # 24
An organization has experienced an unrecoverable data loss event after restoring a system. This is an example of:
- A. A failure to meet the Recovery Time Objective (RTO)
- B. A failure to meet the Recovery Consistency Objective (RCO)
- C. A failure to meet the Recovery Point Objective (RPO)
- D. A failure to conduct a Root Cause Analysis (RCA)
Answer: C
Explanation:
An unrecoverable data loss event after restoring a system is indicative of a failure to meet the Recovery Point Objective (RPO). The RPO represents the maximum tolerable period in which data might be lost due to an incident and is a critical component of an organization's disaster recovery and business continuity planning. If data restoration efforts are unsuccessful and lead to unrecoverable data loss, it means that the organization's data backup and recovery processes were insufficient to meet the defined RPO, leading to a loss of data beyond the acceptable threshold. This situation underscores the importance of implementing effective data backup and recovery strategies that align with the organization's RPO to minimize data loss and ensure business continuity in the event of a disruption.
References:
* Business continuity and disaster recovery standards, such as ISO 22301 (Security and Resilience - Business Continuity Management Systems - Requirements), provide guidelines on establishing and managing RPOs as part of a comprehensive business continuity plan.
* The "Disaster Recovery Planning Guide" by the Disaster Recovery Journal (DRJ) offers insights into best practices for data backup and recovery, emphasizing the importance of aligning recovery strategies with defined RPOs to minimize the impact of data loss incidents.
NEW QUESTION # 25
Which vendor statement provides the BEST description of the concept of least privilege?
- A. We limit root and administrator access to only a few personnel
- B. We require dual authorization for restricted areas
- C. We require separation of duties for performance of high risk activities
- D. We grant people access to the minimum necessary to do their job
Answer: D
Explanation:
The concept of least privilege is a security principle that requires giving each user, service, and application only the permissions needed to perform their work and no more12. It is one of the most important concepts in network and system security, as it reduces the attack surface and the risk of unauthorized access, data breaches, and malware infections12. The statement B best describes this concept, as it implies that the vendor follows the principle of least privilege by granting people access to the minimum necessary to do their job.
The other statements do not capture the essence of the concept, as they either describe other security practices (such as dual authorization and separation of duties) or limit the scope of the concept to a specific type of access (such as root and administrator access).
References:
* 1: 9 Ways to Prevent Third-Party Data Breaches in 2024 | UpGuard
* 2: Best Practice Guide to Implementing the Least Privilege Principle - Netwrix
NEW QUESTION # 26
Which statement is NOT an example of the purpose of internal communications and information sharing using TPRM performance metrics?
- A. To communicate the status of policy compliance with TPRM onboarding, periodic assessment and off-boarding requirements
- B. To communicate the status of findings identified in vendor assessments and escalate issues es needed
- C. To document the agreed upon corrective action plan between external parties based on the severity of findings
- D. To develop and provide periodic reporting to management based on TPRM results
Answer: C
Explanation:
The purpose of internal communications and information sharing using TPRM performance metrics is to inform and align the organization's stakeholders on the status, progress, and outcomes of the TPRM program.
This includes communicating the results of vendor assessments, the compliance level of the organization's policies and procedures, and the periodic reporting to management and other relevant parties. However, documenting the corrective action plan between external parties is not an internal communication, but rather an external one. This is because the corrective action plan is a formal agreement between the organization and the vendor to address and resolve the issues identified in the assessment. Therefore, this statement is not an example of the purpose of internal communications and information sharing using TPRM performance metrics. References:
* 15 KPIs & Metrics to Measure the Success of Your TPRM Program
* Third-party risk management metrics: Best practices to enhance your program
* 3 Best Third-Party Risk Management Software Solutions (2024)
NEW QUESTION # 27
Which of the following BEST reflects components of an environmental controls testing program?
- A. Remote monitoring of HVAC, Smoke, Fire, Water or Power
- B. Conducting periodic reviews of personnel access controls and building intrusion systems
- C. Scheduling testing of building access and intrusion systems
- D. Auditing the CCTV backup process and card-key access process
Answer: A
Explanation:
Remote monitoring of HVAC, Smoke, Fire, Water, or Power systems best reflects components of an environmental controls testing program. These systems are critical to ensuring the physical security and operational integrity of data centers and IT facilities. Environmental controls testing programs are designed to verify that these systems are functioning correctly and can effectively respond to environmental threats. This includes monitoring temperature and humidity (HVAC), detecting smoke or fire, preventing water damage, and ensuring uninterrupted power supply. Regular testing and monitoring of these systems help prevent equipment damage, data loss, and downtime due to environmental factors.
References:
* Environmental control standards such as ISO/IEC 27001 (Information Security Management) include requirements for the testing and monitoring of physical and environmental security controls.
* The "Data Center Operations Manual" by the Uptime Institute provides detailed guidelines on the testing and maintenance of environmental control systems to ensure the resilience and reliability of data center operations.
NEW QUESTION # 28
A set of principles for software development that address the top application security risks and industry web requirements is known as:
- A. Secure code reviews
- B. Security testing methodology
- C. Secure architecture risk analysis
- D. Application security design standards
Answer: D
Explanation:
Application security design standards are a set of principles for software development that address the top application security risks and industry web requirements. They provide guidance on how to design, develop, and deploy secure applications that meet the security objectives of the organization and the expectations of the customers and regulators. Application security design standards cover topics such as secure design principles, threat modeling, encryption, identity and access management, logging and auditing, coding standards and conventions, safe functions, data handling, error handling, third-party components, and testing and validation.
Application security design standards help developers avoid common security pitfalls, reduce vulnerabilities, and enhance the quality and reliability of the software. Application security design standards also facilitate the alignment of the software development lifecycle with the third-party risk management framework, by ensuring that security requirements are defined, implemented, verified, and maintained throughout the development process. References:
* Fundamental Practices for Secure Software Development
* Secure Coding Practices
* Secure Software Development Best Practices
* Certified Third Party Risk Professional (CTPRP) Study Guide
NEW QUESTION # 29
When defining due diligence requirements for the set of vendors that host web applications which of the following is typically NOT part of evaluating the vendor's patch management controls?
- A. The capability of the vendor to apply priority patching of high-risk systems
- B. The existence of a formal process for evaluation and prioritization of known vulnerabilities
- C. A documented process to gain approvals for use of open source applications
- D. Established procedures for testing of patches, service packs, and hot fixes prior to installation
Answer: C
Explanation:
A documented process to gain approvals for use of open source applications is typically not part of evaluating the vendor's patch management controls, because it is not directly related to the patching process. Patch management controls are the policies, procedures, and tools that enable an organization to identify, acquire, install, and verify patches for software vulnerabilities. Patch management controls aim to reduce the risk of exploitation of known software flaws and ensure the functionality and compatibility of the patched systems. A documented process to gain approvals for use of open source applications is more relevant to the software development and procurement processes, as it involves assessing the legal, security, and operational implications of using open source software components in the vendor's products or services. Open source software may have different licensing terms, quality standards, and support levels than proprietary software, and may introduce additional vulnerabilities or dependencies that need to be managed. Therefore, a documented process to gain approvals for use of open source applications is a good practice for vendors, but it is not a patch management control per se. References:
* Guide to Enterprise Patch Management Planning
* Governance of Key Aspects of System Patch Management
* Certified Third Party Risk Professional (CTPRP) Study Guide
NEW QUESTION # 30
Select the risk type that is defined as: "A third party may not be able to meet its obligations due to inadequate systems or processes".
- A. Availability risk
- B. Competency risk
- C. Reliability risk
- D. Performance risk
Answer: D
Explanation:
Performance risk, defined as the risk that a third party may not be able to meet its obligations due to inadequate systems or processes, accurately describes the situation. This type of risk involves concerns about the third party's ability to deliver services or products at the required performance level, potentially due to limitations in their technology infrastructure, operational procedures, or management practices. Identifying and managing performance risk is essential in Third-Party Risk Management (TPRM) to ensure that third-party vendors can reliably meet contractual and service-level agreements, thereby minimizing the impact on the organization's operations and service delivery.
References:
* TPRM guidelines, such as those from the Office of the Comptroller of the Currency (OCC) and the Federal Financial Institutions Examination Council (FFIEC), highlight the importance of assessing and
* managing performance risks associated with third-party relationships.
* The "Third-Party Risk Management Guide" by ISACA discusses various types of risks, including performance risk, associated with engaging third-party service providers, emphasizing the need for thorough due diligence and ongoing monitoring.
NEW QUESTION # 31
An outsourcer's vendor risk assessment process includes all of the following EXCEPT:
- A. Establishing risk evaluation criteria based on company policy
- B. Setting remediation timelines based on the severity level of findings
- C. Developing risk-tiered due diligence standards
- D. Defining assessment frequency based on resource capacity
Answer: D
Explanation:
An outsourcer's vendor risk assessment process should include all the steps mentioned in options A, B, and C, as they are essential for ensuring a consistent, comprehensive, and effective evaluation of the vendor's performance, compliance, and risk profile. However, option D is not a necessary or recommended part of the vendor risk assessment process, as it does not reflect the actual level of risk posed by the vendor, but rather the availability of resources within the outsourcer's organization. Defining assessment frequency based on resource capacity could lead to under-assessing or over-assessing vendors, depending on the outsourcer's workload, budget, and staff. This could result in missing critical issues, wasting time and money, or creating gaps in the vendor oversight program. Therefore, option D is the correct answer, as it is the only one that does not belong to the vendor risk assessment process. References: The following resources support the verified answer and explanation:
* Shared Assessments' CTPRP Job Guide, page 10, section 2.1.1, states that "The frequency of assessments should be based on the risk tier of the third party, not on the availability of resources."
* Guide to Vendor Risk Assessment, section "Step 3: Determine the Frequency of Vendor Risk Assessments", explains that "The frequency of vendor risk assessments should be based on the level of risk each vendor poses to your organization, not on the availability of resources or convenience."
* How to Conduct a Successful Vendor Risk Assessment in 9 Steps, section "Step 8: Determine the Frequency of Vendor Risk Assessments", advises that "The frequency of vendor risk assessments should be based on the level of risk each vendor poses to your organization, not on the availability of resources or convenience."
NEW QUESTION # 32
When evaluating compliance artifacts for change management, a robust process should include the following attributes:
- A. Logging, approvals, validation, back-out and exception procedures
- B. Approval, validation, auditable.
- C. Logging, approval, back-out.
- D. Communications, approval, auditable.
Answer: A
Explanation:
Change management is the process of controlling and documenting any changes to the scope, objectives, requirements, deliverables, or resources of a project or a program. Change management ensures that the impact of any change is assessed and communicated to all stakeholders, and that the changes are implemented in a controlled and coordinated manner. Compliance artifacts are the documents, records, or reports that demonstrate the adherence to the change management process and the regulatory or industry standards.
A robust change management process should include the following attributes:
* Logging: This means that any change request or proposal is recorded in a change log or a change register, along with the details of the change initiator, the change description, the change category, the change priority, the change status, and the change history. Logging helps to track and monitor the progress and outcome of each change, and to provide an audit trail for compliance purposes.
* Approvals: This means that any change request or proposal is reviewed and approved by the appropriate authority or stakeholder, such as the project manager, the sponsor, the customer, the steering committee, or the regulatory body. Approvals help to ensure that the change is justified, feasible, aligned with the project or program objectives, and acceptable to the affected parties.
* Validation: This means that any change request or proposal is verified and tested to ensure that it meets the quality standards, the functional and non-functional requirements, and the expected benefits and outcomes. Validation helps to ensure that the change is implemented correctly, effectively, and efficiently, and that it does not introduce any errors, defects, or risks.
* Back-out and exception procedures: This means that any change request or proposal has a contingency plan or a rollback plan in case the change fails, causes problems, or is rejected. Back-out and exception procedures help to minimize the negative impact of the change, and to restore the original state or the baseline of the project or program. They also help to handle any deviations or issues that may arise during the change implementation or the change review.
References:
* CTPRP Job Guide
* An Agile Approach to Change Management
* CM Overview
* Management Artifacts and its Types
* Achieving Regulatory and Industry Standards Compliance with the Scaled Agile Framework
* 8 Steps for an Effective Change Management Process
NEW QUESTION # 33
If a system requires ALL of the following for accessing its data: (1) a password, (2) a security token, and (3) a user's fingerprint, the system employs:
- A. Challenge/Response authentication
- B. One-Time Password (OTP) authentication
- C. Biometric authentication
- D. Multi-factor authentication
Answer: D
Explanation:
Multi-factor authentication (MFA) is an electronic authentication method that requires a user to present two or more pieces of evidence (or factors) to an authentication mechanism. The factors can be something the user knows (such as a password or a PIN), something the user has (such as a smartphone or a security token), or something the user is (such as a fingerprint or a facial recognition). MFA enhances the security of online accounts and applications by making it harder for attackers to gain access with stolen or guessed credentials.
MFA is recommended as a best practice for third-party risk management, as it can reduce the risk of unauthorized access, data breaches, and identity theft. MFA is also a requirement for some regulatory standards and frameworks, such as PCI DSS, HIPAA, and NIST 800-63. References:
* What is: Multifactor Authentication
* Set up your Microsoft 365 sign-in for multi-factor authentication
* Multi-factor authentication - Wikipedia
* Shared Assessments CTPRP Study Guide, page 19
* Shared Assessments CTPRP Job Guide, page 14
* Best Practices Guidance for Third Party Risk, page 9
NEW QUESTION # 34
Which cloud deployment model is primarily focused on the application layer?
- A. Function a3 a Service
- B. Platform as a Service
- C. Software as a Service
- D. Infrastructure as a Service
Answer: C
Explanation:
Software as a Service (SaaS) is a cloud deployment model that provides users with access to software applications over the internet, without requiring them to install, maintain, or update the software on their own devices. SaaS is primarily focused on the application layer, as it delivers the complete functionality of the software to the end users, while abstracting away the underlying infrastructure, platform, and middleware layers. SaaS providers are responsible for managing the servers, databases, networks, security, and scalability of the software, as well as ensuring its availability, performance, and compliance. SaaS users only pay for the software usage, usually on a subscription or pay-per-use basis, and can access the software from any device and location, as long as they have an internet connection. Some examples of SaaS applications are Gmail, Salesforce, Dropbox, and Netflix. References:
* Shared Assessments CTPRP Study Guide, page 15, section 2.2.2
* Cloud Computing Deployment Models and Architectures, section on Cloud Computing Models
* Layered Architecture of Cloud, section on Application Layer
NEW QUESTION # 35
Which activity reflects the concept of vendor management?
- A. Managing service level agreements
- B. Scanning and collecting information from third party web sites
- C. Reviewing and analyzing external audit reports
- D. Receiving and analyzing a vendor's response to & questionnaire
Answer: A
Explanation:
Vendor management is the process of coordinating with vendors to ensure excellent service to your customers12. It involves activities such as selecting vendors, negotiating contracts, controlling costs, reducing vendor-related risks and ensuring service delivery12. One of the key activities of vendor management is managing service level agreements (SLAs), which are contracts that define the expectations and obligations of both parties regarding the quality, quantity, and timeliness of the goods or services provided3. SLAs help to monitor and measure vendor performance, identify and resolve issues, and enforce penalties or rewards based on the agreed-upon metrics3. The other options are not correct because they do not reflect the concept of vendor management as a whole, but rather specific aspects or tools of vendor management. Scanning and collecting information from third party web sites, reviewing and analyzing external audit reports, and receiving and analyzing a vendor's response to a questionnaire are all examples of methods or sources of information that can be used to conduct vendor due diligence, risk assessment, or performance evaluation, but they are not the only or the most important activities of vendor management. References:
* What is Vendor Management? Definition, Process, and Tools
* What is vendor management? | Definition & Process | Taulia
* Essential Guide to Vendor Management | Smartsheet, section "Service Level Agreements"
NEW QUESTION # 36
Which example is typically NOT included in a Business Impact Analysis (BIA)?
- A. Requiring vendor participation in testing
- B. Prioritization of business functions and processes
- C. Identifying the criticality of applications
- D. Including any contractual or legal/regulatory requirements
Answer: A
Explanation:
A Business Impact Analysis (BIA) is a process of determining the criticality of business activities and associated resource requirements to ensure operational resilience and continuity of operations during and after a business disruption1. A BIA is used to identify the potential impacts of disruptions on business processes, such as lost sales, delayed revenue, increased expenses, regulatory fines, or contractual penalties2. A BIA is not concerned with the probability or causes of disruptions, but rather with the effects and consequences of disruptions3. Therefore, a BIA typically does not include requiring vendor participation in testing, as this is a part of the business continuity and disaster recovery planning and implementation, not the impact analysis. Vendor participation in testing is important to validate the effectiveness and alignment of the vendor's business continuity and disaster recovery plans with the organization's objectives and expectations, but it is not a component of the BIA itself. References: 1: Using Business Impact Analysis to Inform Risk Prioritization and Response 2: Business Impact Analysis (BIA): Prepare for Anything [2024] * Asana 3: The Difference Between a Vendor's BIA and Risk Analysis - Venminder : Best Practices Guidance for Third Party Risk
NEW QUESTION # 37
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