CTPRP Exam Dumps - Certified Third-Party Risk Professional (CTPRP)

This statement is false because assessing risk impact does not require an analysis of prior events, frequency of occurrence, and external trends. These factors are relevant for assessing risk likelihood or probability, not impact. Risk impact is the potential consequence or damage that a risk event may cause to the organization or its stakeholders. Risk impact can be measured qualitatively (e.g., high, medium, low) or quantitatively (e.g., monetary value, percentage of revenue, number of customers affected). To assess risk impact, the organization needs to consider the nature and scope of the risk, the potential harm or loss, and the sensitivity or tolerance of the organization or its stakeholders to the risk. References:

• How to Manage and Measure Third-Party Risk, OneTrust Blog
• Third-party risk, Deloitte
• Assessing Risks in Third Parties, ERM - Enterprise Risk Management Initiative

Scoping is a critical step in third party assessments, as it determines the scope and depth of the assessment based on the inherent risk, impact, and complexity of the vendor relationship. Scoping helps to ensure that the assessment is relevant, efficient, and consistent with the outsourcer’s risk appetite and objectives. Scoping also helps to avoid over or under assessing the vendor, which could result in unnecessary costs, delays, or gaps in risk management. Scoping is not a one-time activity, but rather an ongoing process that should be reviewed and updated throughout the vendor lifecycle. Scoping should be aligned with the outsourcer’s third party risk management framework and policies, and follow the best practices and guidelines provided by the Shared Assessments Program and other industry standards. References:

• 1: THIRD PARTY RISK MANAGEMENT TOOLKIT - Shared Assessments, pages 4-6
• 2: How Dynamic Scoping Can Improve Vendor Risk Assessments - ProcessUnity
• 3: Inherent Risk Tiering for Third-Party Vendor Assessments - MindPoint Group

An enterprise information security policy (EISP) is a management-level document that details the organization’s philosophy, objectives, and expectations regarding information security. It sets the direction, scope, and tone for all security efforts and provides a framework for developing and implementing security programs and controls. According to the web search results from the search_web tool, some of the key elements of an EISP are:

• A statement of the organization’s security vision, mission, and principles that align with its business goals and values123.
• A definition of the organizational structure and accountabilities for oversight, governance, and management of information security, including roles and responsibilities of senior executives, security officers, business units, and users123 .
• A specification of the legal and regulatory compliance requirements and obligations that the organization must adhere to, such as data protection, privacy, and breach notification laws123 .
• A description of the scope and applicability of the EISP, including the types of information, systems, and assets that are covered, and the exclusions or exceptions that may apply123 .
• A declaration of the effective date and date of last review by management, as well as the frequency and criteria for reviewing and updating the EISP to ensure its relevance and adequacy123 .
• A statement of the organization’s risk appetite and tolerance, and the process for identifying, assessing, and treating information security risks123 .
• A provision of the authority and responsibility for implementing, enforcing, monitoring, and auditing the EISP and its related policies, standards, procedures, and guidelines123 .
• A determination of the access control policy and the rules for granting, revoking, and reviewing access rights and privileges to information, systems, and assets123 .
• An organization of the EISP based on an accepted control framework, such as ISO 27001, NIST SP 800-53, or COBIT, that defines the security domains, objectives, and controls that the organization must implement and maintain123 .

However, option C, a statement that security policies should be changed on an annual basis due to technology changes, is not an accurate reflection of an organization’s requirements within an EISP. While technology changes may affect the security environment and the threats and vulnerabilities that the organization faces, they are not the only factor that determines the need for changing security policies. Other factors, such as business changes, legal changes, risk changes, audit findings, incident reports, and best practices, may also trigger the need for reviewing and updating security policies. Therefore, option C is the correct answer, as it is the only one that does not reflect an organization’s requirements within an EISP. References: The following resources support the verified answer and explanation:

• 1: What Is The Purpose Of An Enterprise Information Security Policy?
• 2: Enterprise Information Security Policies and Standards
• 3: Key Elements Of An Enterprise Information Security Policy
• : Enterprise Information Security Policy (EISP) - SANS

External continuous monitoring solutions are tools or services that provide objective and timely data on the cybersecurity posture and performance of third-party vendors. They typically include components such as:

• Status updates on localized events based on geolocation, which can alert the organization to potential disruptions or incidents affecting the vendor’s operations or infrastructure in a specific region or country12.
• Alerts on legal and regulatory actions involving the vendor, which can indicate the vendor’s compliance status, reputation, or liability exposure13.
• Reports that identify changes in vendor financial viability, which can signal the vendor’s ability to sustain its business operations, invest in security, or honor its contractual obligations14.

However, metrics that track SLAs for performance management are not typically included in external continuous monitoring solutions, as they are more relevant for internal monitoring and reporting. SLAs are service level agreements that define the expected quality, availability, and reliability of the vendor’s services or products, as well as the penalties or remedies for non-compliance. SLAs are usually measured and reported by the vendor itself, or by a third-party auditor or assessor, based on the specific criteria and frequency agreed upon by the parties . Therefore, option C is the correct answer. References:

• Third Party Risk Management Framework, Module 5: Program Implementation, Section 5.2: Ongoing Monitoring, p. 32
• Bitsight Continuous Monitoring, Section: Uncover hidden risks
• Best-Practices Guidance for Third-Party Risk, Section: Monitor Third-Party Compliance with Regulations and Standards, p. 3
• Five Best Practices to Manage and Control Third-Party Risk, Section: Monitor Third-Party Financial Health, p. 4
• [Third Party Risk Management Framework], Module 4: Program Components, Section 4.3: Contracting, p. 24
• [A Better Way to Manage Third-Party Risk], Section: Establish clear service level agreements (SLAs) and key performance indicators (KPIs), p. 2

For services with system-to-system access, ensuring sufficient time for quality assurance (QA) testing before implementing changes is crucial to reducing the risk of business disruption to the outsourcer. This requirement ensures that any modifications to the system are thoroughly vetted for potential issues that could impact the outsourcer's operations. QA testing allows for the identification and remediation of bugs, compatibility issues, and other potential problems that could lead to operational disruptions or security vulnerabilities. By allocating adequate time for QA testing, organizations can ensure that changes are fully functional and secure, thereby maintaining the integrity and availability of services provided to the outsourcer. This practice is aligned with industry standards for change management, which advocate for comprehensive testing and validation processes to ensure the reliability and stability of system changes.

References:

• Industry standards such as ITIL (Information Technology Infrastructure Library) emphasize the importance of thorough testing and validation within the change management process to minimize the risk of disruptions and ensure the smooth operation of services.
• Guides like "Managing Change in IT Outsourcing Arrangements: The TPRM Perspective" provide insights into best practices for change management in third-party relationships, including the critical role of QA testing in mitigating risks associated with system changes.