CTPRP Exam WITH LEGIT QUESTIONS AND
WELL VERIFIED ANSWERS(NEW!!!)(NEW!!!)
Fully developed TPRM Program has become a critical component of an
organizations approach to....? - ANSWER>>>Enterprise Risk Management (ERM)
Enterprise Risk Management (ERM) risk factors - ANSWER>>>strategic risks,
financial risks, operational risks, compliance risk, IT and infrastructure risks,
reputational risks
GRC - ANSWER>>>Governance, Risk, and Compliance
GRC Definition - 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.
Definition of Frameworks - ANSWER>>>A framework is flexible and allows for
adaptation. Frameworks outline a broad perspective of interlinked items in a
field of practice.
Definition of Standards - ANSWER>>>A Standard is clearly defined, rigid, and
universally accepted as the best method for addressing a specific topic. Within a
standard, there is typically one accepted way of accomplishing the task.
Within TPRM, it is common for technology controls to leverage _____ , and risk
management functions to leverage ____ to frame the requirements -
ANSWER>>>Standards; Frameworks
,Regulations, Statutes, and Laws - 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
Industry Sector Guidance - 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.
Established Risk Culture. The First step is to ensure that requirements for risk-
based vendor management are communicated to the organization. Consider the
following: - ANSWER>>>Tone at the top
Risk posture
Risk tolerance
Risk management methodology
Acceptance process and exception process
Comparing Vendor Management and Vendor Risk Management -
ANSWER>>>The point-of-view on roles and responsibilities between vendor
management and vendor risk management are often misunderstood. Let's look
at both the similarities and differences.
Vendor Management - 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.
,Vendor Risk Management - 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.
The risk associated with an outsourced activity takes many forms -
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.
The organizational function that identifies the need to outsource an activity
should...... - 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.
Types of Risks in Third Party Relationships - 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
TPRM programs, the fundamental point-of-view is to evaluate the risk based
upon the function that has been outsourced.
Performance Risk: - ANSWER>>>The TP may not be able to meet its obligations
due to inadequate systems or processes
Reliability Risk: - ANSWER>>>The TP may not be able to adhere to an expected
or contracted level of service
, Reputation or Brand Risk: - ANSWER>>>damage to reputation or loss of clients
due to poor customer service, errors, processing delays, fraud, fines, etc.
- Competency Risk: - ANSWER>>>the TP may not be able to retain skilled
employees or maintain up-to-date personnel qualifications
- Availability Risk: - ANSWER>>>the TP systems may not have sufficient
redundancy or resiliency during an event or incident
- Technology Risk: - ANSWER>>>the TPs technology becomes obsolete, or a
change in technology triggers operational impact to the company
- Cybersecurity Risk: - ANSWER>>>the TP may fail to appropriately manage
threats, vulnerabilities, and controls which may result in loss of data
- Scalability Risk: - ANSWER>>>the TP may not be able to support growth or
spikes in demand without service failures or decline in performance
Compliance Risk: - ANSWER>>>the TP may not be in compliance with applicable
laws, regulations, or contractual obligations
When an organization decides to seek external assistance from a Third Party or
establishes an internal dedicated entity (an Affiliate), to provide specific services
and expertise, then that organization will leverage... - ANSWER>>>Outsourcing
to enter into a contractual relationship to obtain those services. The
development of optimal contract terms is a critical best practice in TPRM.
However, contract terms should never replace oversight by the Outsourcer.
ESG - ANSWER>>>Environmental, Social, and Governance
GDPR - ANSWER>>>General Data Protection Regulation
WELL VERIFIED ANSWERS(NEW!!!)(NEW!!!)
Fully developed TPRM Program has become a critical component of an
organizations approach to....? - ANSWER>>>Enterprise Risk Management (ERM)
Enterprise Risk Management (ERM) risk factors - ANSWER>>>strategic risks,
financial risks, operational risks, compliance risk, IT and infrastructure risks,
reputational risks
GRC - ANSWER>>>Governance, Risk, and Compliance
GRC Definition - 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.
Definition of Frameworks - ANSWER>>>A framework is flexible and allows for
adaptation. Frameworks outline a broad perspective of interlinked items in a
field of practice.
Definition of Standards - ANSWER>>>A Standard is clearly defined, rigid, and
universally accepted as the best method for addressing a specific topic. Within a
standard, there is typically one accepted way of accomplishing the task.
Within TPRM, it is common for technology controls to leverage _____ , and risk
management functions to leverage ____ to frame the requirements -
ANSWER>>>Standards; Frameworks
,Regulations, Statutes, and Laws - 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
Industry Sector Guidance - 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.
Established Risk Culture. The First step is to ensure that requirements for risk-
based vendor management are communicated to the organization. Consider the
following: - ANSWER>>>Tone at the top
Risk posture
Risk tolerance
Risk management methodology
Acceptance process and exception process
Comparing Vendor Management and Vendor Risk Management -
ANSWER>>>The point-of-view on roles and responsibilities between vendor
management and vendor risk management are often misunderstood. Let's look
at both the similarities and differences.
Vendor Management - 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.
,Vendor Risk Management - 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.
The risk associated with an outsourced activity takes many forms -
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.
The organizational function that identifies the need to outsource an activity
should...... - 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.
Types of Risks in Third Party Relationships - 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
TPRM programs, the fundamental point-of-view is to evaluate the risk based
upon the function that has been outsourced.
Performance Risk: - ANSWER>>>The TP may not be able to meet its obligations
due to inadequate systems or processes
Reliability Risk: - ANSWER>>>The TP may not be able to adhere to an expected
or contracted level of service
, Reputation or Brand Risk: - ANSWER>>>damage to reputation or loss of clients
due to poor customer service, errors, processing delays, fraud, fines, etc.
- Competency Risk: - ANSWER>>>the TP may not be able to retain skilled
employees or maintain up-to-date personnel qualifications
- Availability Risk: - ANSWER>>>the TP systems may not have sufficient
redundancy or resiliency during an event or incident
- Technology Risk: - ANSWER>>>the TPs technology becomes obsolete, or a
change in technology triggers operational impact to the company
- Cybersecurity Risk: - ANSWER>>>the TP may fail to appropriately manage
threats, vulnerabilities, and controls which may result in loss of data
- Scalability Risk: - ANSWER>>>the TP may not be able to support growth or
spikes in demand without service failures or decline in performance
Compliance Risk: - ANSWER>>>the TP may not be in compliance with applicable
laws, regulations, or contractual obligations
When an organization decides to seek external assistance from a Third Party or
establishes an internal dedicated entity (an Affiliate), to provide specific services
and expertise, then that organization will leverage... - ANSWER>>>Outsourcing
to enter into a contractual relationship to obtain those services. The
development of optimal contract terms is a critical best practice in TPRM.
However, contract terms should never replace oversight by the Outsourcer.
ESG - ANSWER>>>Environmental, Social, and Governance
GDPR - ANSWER>>>General Data Protection Regulation
