ACTUAL EXAM QUESTIONS IN SHARED ASSESSMENTS CTPRP PDF FOR QUICK PREPARATION

Actual Exam Questions in Shared Assessments CTPRP PDF for Quick Preparation

Actual Exam Questions in Shared Assessments CTPRP PDF for Quick Preparation

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Shared Assessments Certified Third-Party Risk Professional (CTPRP) Sample Questions (Q188-Q193):

NEW QUESTION # 188
Which of the following statements best differentiates asset management from supply chain management?

  • A. Asset management focuses on assets the organization owns or uses, not produces
  • B. Supply chain management oversees the flow of items to fulfill services
  • C. Supply chain management focuses on customer satisfaction and delivery timelines
  • D. Asset management integrates vendor risk management and inventory control

Answer: A

Explanation:
The correct answer explains the fundamental difference between asset management and supply chain management. Asset management is about managing the organization's own assets, while supply chain management involves managing the flow of products and services to customers.


NEW QUESTION # 189
Who should data privacy policies identify as responsible for data protection oversight?

  • A. The head of marketing.
  • B. The chief technology officer.
  • C. The lead software developer.
  • D. The data protection officer.

Answer: D

Explanation:
The data protection officer is typically identified in data privacy policies as responsible for oversight of data protection strategies, ensuring compliance with data protection laws and acting as a point of contact for privacy matters.


NEW QUESTION # 190
Which scenario best describes the appropriate use of a remote wipe?

  • A. A device is scheduled for regular maintenance
  • B. An employee requests a newer model of their device
  • C. A company device is lost during business travel
  • D. A device displays a software error repeatedly

Answer: C

Explanation:
The appropriate use of a remote wipe feature is exemplified when a company device containing sensitive information is lost during business travel, necessitating immediate action to secure the data.


NEW QUESTION # 191
Which factor describes the concept of criticality of a service provider relationship when determining vendor classification?

  • A. Criticality is assigned to the subset of vendor relationships that pose the greatest impact due to their unavailability
  • B. Criticality is described as the set of vendors with remote access or network connectivity to company systems
  • C. Criticality is limited to only the set of vendors involved in providing disaster recovery services
  • D. Criticality is determined as all high risk vendors with access to personal information

Answer: A

Explanation:
Criticality is a measure of how essential a service provider is to the organization's core business functions and objectives. It reflects the potential consequences of a service disruption or failure on the organization's operations, reputation, compliance, and financial performance. Criticality is not the same as risk, which is the likelihood and severity of a negative event occurring. Criticality helps to prioritize the risk assessment and mitigation efforts for different service providers based on their relative importance to the organization.
Criticality is not limited to a specific type of service, such as disaster recovery or personal information, nor is it determined by the mode of access or connectivity. Criticality is assigned to the service providers that have the greatest impact on the organization's ability to deliver its products or services to its customers and stakeholders in a timely and satisfactory manner. References:
* Shared Assessments. (2020). Certified Third Party Risk Professional (CTPRP) Study Guide1
* Milliman. (2017). Defining "critical or important functions or activities" for outsourcing purposes2
* Webster, C. and Sundaram, D.S. (2009). Effect of service provider's communication style on customer satisfaction in professional services setting: the moderating role of criticality and service nature. Journal of Services Marketing, 23(2), 103-1131


NEW QUESTION # 192
Which statement provides the BEST description of inherent risk?

  • A. Inherent risk is the level of risk that exists with all of the necessary controls in place
  • B. Inherent risk is the amount of risk an organization can accept based on their risk tolerance
  • C. inherent risk is the amount of risk an organization can incur when there is an absence of controls
  • D. Inherent risk is the level of risk triggered by outsourcing & product or service

Answer: C

Explanation:
Inherent risk refers to the level of risk that exists in the absence of any controls or mitigation measures. It represents the natural exposure to risk in operations, transactions, or activities without considering the effectiveness of any risk management practices. In the context of Third-Party Risk Management (TPRM), inherent risk assesses the potential for loss or adverse outcomes associated with a third-party relationship before any controls or risk treatments are applied. Understanding inherent risk is crucial for organizations to identify where controls are necessary and to prioritize risk management efforts based on the potential impact and likelihood of different risks. This concept is foundational in risk management frameworks and is used to guide the development and implementation of controls to reduce risk to an acceptable level, aligned with the organization's risk appetite and tolerance.
References:
* Risk management standards such as ISO 31000 (Risk Management - Guidelines) provide a framework for assessing and managing inherent risks, emphasizing the importance of understanding the baseline level of risk in decision-making processes.
* The "Third-Party Risk Management Guide" by ISACA outlines best practices for assessing inherent risks in third-party relationships, highlighting the need to evaluate the nature and scope of third-party engagements to determine the baseline risk exposure.


NEW QUESTION # 193
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