Shared Assessments CTPRP Exam With Confidence Using Practice Dumps

Termination for cause is the type of contract termination that is most likely to occur after failure to remediate assessment findings. This is because termination for cause is based on a breach of contract by the third-party, such as non-compliance, poor performance, fraud, or misconduct. Failure to remediate assessment findings indicates that the third-party has not met the contractual obligations or expectations of the entity, and thus exposes the entity to increased risk and liability. Termination for cause allows the entity to end the contract immediately or after a notice period, and to seek damages or remedies from the third-party. Termination for cause is different from other types of contract termination, such as:

• Regulatory/supervisory termination, which is triggered by a change in law or regulation that affects the legality or feasibility of the contract.
• Termination for convenience, which is exercised by the entity without any fault or breach by the third-party, usually for strategic or operational reasons.
• Normal termination, which is the natural expiration of the contract term or the completion of the contract scope. References:
• Shared Assessments. (2020). Certified Third Party Risk Professional (CTPRP) Study Guide1
• Fusion Risk Management. (2021). Exit Strategy for Terminating a Third Party2
• Volkov, M. (2016). Third-Party Risk Management – Part 2: Contract Termination3

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

The onboarding process for new hires is a key part of the third-party risk management program, as it ensures that the right people are hired and trained to perform their roles effectively and securely. One of the best practices for onboarding new hires is to conduct applicant screening, which may include background checks, reference checks, verification of credentials, and assessment of skills and competencies. Applicant screening helps to identify and mitigate potential risks such as fraud, theft, corruption, or data breaches that may arise from hiring unqualified, dishonest, or malicious individuals. Therefore, it is important to wait for the results of applicant screening before onboarding new employees and contractors, as this can prevent costly and damaging incidents in the future.

The other statements are false regarding the onboarding process for new hires. It is necessary to have employees, contractors, and third-party users sign confidentiality or non-disclosure agreements, as this protects the company’s sensitive information and intellectual property from unauthorized disclosure or misuse. Non-compete agreements may not be required for all job roles, as they may limit the employee’s ability to work for other companies or in the same industry after leaving the current employer. They may also be subject to legal challenges depending on the jurisdiction and the scope of the agreement. Security and privacy awareness training is essential for all new employees and contractors, regardless of their existing certifications, as it educates them on the company’s policies, procedures, and standards for protecting data and systems from cyber threats. It also helps to foster a culture of security and compliance within the organization. References:

• 5 Steps to Effective Third-Party Onboarding
• Using a third-party onboarding tool to address new challenges in third-party risk
• Onboarding and terminating third parties
• CTPRP Job Guide