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CTPRP EXAM 2025 QUESTIONS AND
ANSWERS
1. Fully developed TPRM Program has become a critical component of an
organizations approach to .... ? -correct answer-Enterprise Risk Management
(ERM)
2. Enterprise Risk Management (ERM) risk factors -correct answer-strategic risks,
financial risks, operational risks, compliance risk, IT and infrastructure risks,
reputational risks
3. GRC -correct answer-Governance, Risk, and Compliance
4. GRC Definition -correct answer-Governance, Risk, and Compliance (GRC) is the
framework and tools such as policies; procedures; and controls and decision-
making hierarchy. These are employed to manage risk in the
organization. GRC systems partially automate risk management processes, such an
onboarding, ongoing oversight, compliance, incident/issue management, and
maintenance of TP risk registers and inventories.
5. Definition of Frameworks -correct answer-A framework is flexible and allows for
adaptation. Frameworks outline a broad perspective of interlinked items in a field
of practice.
6. Definition of Standards -correct answer-A Standard is clearly defined, rigid, and
universally accepted as the best method for addressing a specific topic.
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Within a standard, there is typically one accepted way of accomplishing the task.
7. Within TPRM, it is common for technology controls to leverage , and
risk management functions to leverage to frame the requirements -correct
answer-Standards; Frameworks
8. Regulations, Statutes, and Laws -correct answer-Managing Compliance
Obligations - Compliance obligations can be driven by statutory, regulatory,
contractual, or industry requirements. While specific regulations are sectoral or
country specific, there are more commonalities in how regulations are being
shaped by international, federal, or state/provincial regulators that influence TPRM
9. Industry Sector Guidance -correct answer-Industry sectors that are more highly
regulated have designated governmental agencies or functions responsible for
oversight of participants in that industry. These entities publish guidance that
creates requirements and obligations for both Outsourcers and SPs within each
respective industry. IN some sectors, like financial services and healthcare, there
may be formalized audits or examinations to assess compliance for TP SPs.
10. Established Risk Culture. The First step is to ensure that requirements for risk-
based vendor management are communicated to the organization. Consider the
following: -correct answer-Tone at the top
Risk posture Risk
tolerance
Risk management methodology Acceptance
process and exception process
11. Comparing Vendor Management and Vendor Risk Management -correct
answer-The point-of-view on roles and responsibilities between vendor
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management and vendor risk management are often misunderstood. Let's look at
both the similarities and differences.
12. Vendor Management -correct answer-In vendor management, the viewpoint is
operations-based. The organization will focus on issues or service delivery
complaints. This involves cross-functional resources to collaborate on defining
requirements, contract terms and provisions, and key metrics that define the
relationship.
13. Vendor Risk Management -correct answer-In vendor risk management, the
viewpoint is risk-based. The organization will focus on risks and threats. Just like
in vendor management, these processes involve cross-functional resources to
collaborate on defining requirements, contract terms and provisions, and key
metrics that define the relationship.
14. The risk associated with an outsourced activity takes many forms -correct
answer-These include the specific risks associated with outsourcing, including
but not limited to, financial stability, financial criminal activity monitoring,
reputational, concentration, legal, country, operational, technology, and security.
15. The organizational function that identifies the need to outsource an activity
should ... .. -correct answer-determine the inherent risk associated with
performing that activity. The inherent risks identified will then determine the type
and level of due diligence and control validation to be performed to mitigate the
risks associated with the activity.
16. Types of Risks in Third Party Relationships -correct answer-Risk in Third Party
relationships can be looked at based upon process, technology, or external factors.
Each type of risk requires processes for risk identification, quantification,
prioritization, and mitigation. Risk in Third Party relationships may be viewed at the
organizational level or at a product/service level. For
, Page |4
TPRM programs, the fundamental point-of-view is to evaluate the risk based upon
the function that has been outsourced.
17. Performance Risk: -correct answer-The TP may not be able to meet its
obligations due to inadequate systems or processes
18. Reliability Risk: -correct answer-The TP may not be able to adhere to an
expected or contracted level of service
19. Reputation or Brand Risk: -correct answer-damage to reputation or loss of clients
due to poor customer service, errors, processing delays, fraud, fines, etc.
- Competency Risk: -correct answer-the TP may not be able to retain skilled
employees or maintain up-to-date personnel qualifications
- Availability Risk: -correct answer-the TP systems may not have sufficient
redundancy or resiliency during an event or incident
- Technology Risk: -correct answer-the TPs technology becomes obsolete, or a
change in technology triggers operational impact to the company
- Cybersecurity Risk: -correct answer-the TP may fail to appropriately manage
threats, vulnerabilities, and controls which may result in loss of data
- Scalability Risk: -correct answer-the TP may not be able to support growth or
spikes in demand without service failures or decline in performance
CTPRP EXAM 2025 QUESTIONS AND
ANSWERS
1. Fully developed TPRM Program has become a critical component of an
organizations approach to .... ? -correct answer-Enterprise Risk Management
(ERM)
2. Enterprise Risk Management (ERM) risk factors -correct answer-strategic risks,
financial risks, operational risks, compliance risk, IT and infrastructure risks,
reputational risks
3. GRC -correct answer-Governance, Risk, and Compliance
4. GRC Definition -correct answer-Governance, Risk, and Compliance (GRC) is the
framework and tools such as policies; procedures; and controls and decision-
making hierarchy. These are employed to manage risk in the
organization. GRC systems partially automate risk management processes, such an
onboarding, ongoing oversight, compliance, incident/issue management, and
maintenance of TP risk registers and inventories.
5. Definition of Frameworks -correct answer-A framework is flexible and allows for
adaptation. Frameworks outline a broad perspective of interlinked items in a field
of practice.
6. Definition of Standards -correct answer-A Standard is clearly defined, rigid, and
universally accepted as the best method for addressing a specific topic.
, Page |2
Within a standard, there is typically one accepted way of accomplishing the task.
7. Within TPRM, it is common for technology controls to leverage , and
risk management functions to leverage to frame the requirements -correct
answer-Standards; Frameworks
8. Regulations, Statutes, and Laws -correct answer-Managing Compliance
Obligations - Compliance obligations can be driven by statutory, regulatory,
contractual, or industry requirements. While specific regulations are sectoral or
country specific, there are more commonalities in how regulations are being
shaped by international, federal, or state/provincial regulators that influence TPRM
9. Industry Sector Guidance -correct answer-Industry sectors that are more highly
regulated have designated governmental agencies or functions responsible for
oversight of participants in that industry. These entities publish guidance that
creates requirements and obligations for both Outsourcers and SPs within each
respective industry. IN some sectors, like financial services and healthcare, there
may be formalized audits or examinations to assess compliance for TP SPs.
10. Established Risk Culture. The First step is to ensure that requirements for risk-
based vendor management are communicated to the organization. Consider the
following: -correct answer-Tone at the top
Risk posture Risk
tolerance
Risk management methodology Acceptance
process and exception process
11. Comparing Vendor Management and Vendor Risk Management -correct
answer-The point-of-view on roles and responsibilities between vendor
, Page |3
management and vendor risk management are often misunderstood. Let's look at
both the similarities and differences.
12. Vendor Management -correct answer-In vendor management, the viewpoint is
operations-based. The organization will focus on issues or service delivery
complaints. This involves cross-functional resources to collaborate on defining
requirements, contract terms and provisions, and key metrics that define the
relationship.
13. Vendor Risk Management -correct answer-In vendor risk management, the
viewpoint is risk-based. The organization will focus on risks and threats. Just like
in vendor management, these processes involve cross-functional resources to
collaborate on defining requirements, contract terms and provisions, and key
metrics that define the relationship.
14. The risk associated with an outsourced activity takes many forms -correct
answer-These include the specific risks associated with outsourcing, including
but not limited to, financial stability, financial criminal activity monitoring,
reputational, concentration, legal, country, operational, technology, and security.
15. The organizational function that identifies the need to outsource an activity
should ... .. -correct answer-determine the inherent risk associated with
performing that activity. The inherent risks identified will then determine the type
and level of due diligence and control validation to be performed to mitigate the
risks associated with the activity.
16. Types of Risks in Third Party Relationships -correct answer-Risk in Third Party
relationships can be looked at based upon process, technology, or external factors.
Each type of risk requires processes for risk identification, quantification,
prioritization, and mitigation. Risk in Third Party relationships may be viewed at the
organizational level or at a product/service level. For
, Page |4
TPRM programs, the fundamental point-of-view is to evaluate the risk based upon
the function that has been outsourced.
17. Performance Risk: -correct answer-The TP may not be able to meet its
obligations due to inadequate systems or processes
18. Reliability Risk: -correct answer-The TP may not be able to adhere to an
expected or contracted level of service
19. Reputation or Brand Risk: -correct answer-damage to reputation or loss of clients
due to poor customer service, errors, processing delays, fraud, fines, etc.
- Competency Risk: -correct answer-the TP may not be able to retain skilled
employees or maintain up-to-date personnel qualifications
- Availability Risk: -correct answer-the TP systems may not have sufficient
redundancy or resiliency during an event or incident
- Technology Risk: -correct answer-the TPs technology becomes obsolete, or a
change in technology triggers operational impact to the company
- Cybersecurity Risk: -correct answer-the TP may fail to appropriately manage
threats, vulnerabilities, and controls which may result in loss of data
- Scalability Risk: -correct answer-the TP may not be able to support growth or
spikes in demand without service failures or decline in performance
