CTPRP Exam Dumps - Shared Assessments Third Party Risk Management Questions and Answers

According to the Shared Assessments Certified Third Party Risk Professional (CTPRP) Study Guide, the third party risk assessor’s role is to evaluate the design and operating effectiveness of the third party’s controls based on an industry framework, such as ISO, NIST, COBIT, or COSO1. The assessor’s role is not to provide an opinion on the effectiveness of controls, but rather to report the results of the evaluation in a factual and objective manner2. The assessor’s role is also to conduct discovery with subject matter experts to understand the control environment, to conduct discovery and validate responses from the risk assessment questionnaire by testing or validating controls, and to review compliance artifacts and identify potential control gaps based on evaluation of the presence of control attributes1. These are all true statements that describe the assessor’s role when conducting a controls evaluation using an industry framework.

References:

• 1: Shared Assessments Certified Third Party Risk Professional (CTPRP) Study Guide, page 29
• 2: What is a Third-Party Risk Assessment? — RiskOptics

Data anonymization is the process of removing or altering any information that can be used to identify an individual from a data set. This technique provides the strongest assurance that data does not identify an individual, as it makes it impossible or extremely difficult to link the data back to the original source. Data anonymization can be achieved by various methods, such as generalization, suppression, perturbation, or pseudonymization12. Data anonymization is often used for privacy protection, compliance with data protection regulations, and data sharing purposes3. References:

• 1: Data Security: Definition, Importance, and Types | Fortinet
• 2: Data Security Best Practices: Top 10 Data Protection Methods - Ekran System
• 3: Data anonymization - Wikipedia

Application security design standards are a set of principles for software development that address the top application security risks and industry web requirements. They provide guidance on how to design, develop, and deploy secure applications that meet the security objectives of the organization and the expectations of the customers and regulators. Application security design standards cover topics such as secure design principles, threat modeling, encryption, identity and access management, logging and auditing, coding standards and conventions, safe functions, data handling, error handling, third-party components, and testing and validation. Application security design standards help developers avoid common security pitfalls, reduce vulnerabilities, and enhance the quality and reliability of the software. Application security design standards also facilitate the alignment of the software development lifecycle with the third-party risk management framework, by ensuring that security requirements are defined, implemented, verified, and maintained throughout the development process. References:

• Fundamental Practices for Secure Software Development
• Secure Coding Practices
• Secure Software Development Best Practices
• Certified Third Party Risk Professional (CTPRP) Study Guide

A network access policy is a set of rules and conditions that define how authorized users and devices can access the network resources and services of an organization. It typically includes the following elements12:

• Firewall settings: These are the rules that control the incoming and outgoing network traffic based on the source, destination, protocol, and port of the packets. Firewall settings help to protect the network from unauthorized or malicious access, and to enforce the network security policy of the organization.
• Unauthorized device detection: This is the process of identifying and preventing unauthorized devices from accessing the network. Unauthorized devices can pose a security risk to the network, as they may not comply with the security standards and policies of the organization, or they may be compromised by malware or hackers. Unauthorized device detection can be done by using various methods, such as network access control (NAC), network admission control (NAC), or 802.1X authentication.
• Remote access: This is the ability of authorized users to access the network resources and services of the organization from a remote location, such as a home office, a hotel, or a public hotspot. Remote access can be provided by using various technologies, such as virtual private networks (VPNs), remote desktop services (RDS), or remote access services (RAS). Remote access requires a secure and reliable connection, and it must comply with the network access policy of the organization.
• Website privacy consent banners: These are the messages that appear on websites to inform the visitors about the use of cookies and other tracking technologies, and to obtain their consent for such use. Website privacy consent banners are part of the website privacy policy, which is a legal document that discloses how the website collects, uses, and protects the personal data of the visitors. Website privacy consent banners are not related to the network access policy of the organization, as they do not affect how the users and devices can access the network resources and services of the organization.

Therefore, the correct answer is C. Website privacy consent banners, as they are typically not included within the scope of an organization’s network access policy. References:

• 1: Network Policy Server (NPS) | Microsoft Learn
• 2: Network Access Policy | University Policies

 it is the most appropriate and compliant method of validating pre-employment screening attributes among the given options. Requesting evidence of the performance of pre-employment screening when permitted by law means that the organization respects the legal and regulatory boundaries of different jurisdictions and does not impose unnecessary or unlawful requirements on its third parties. It also ensures that the organization obtains relevant and reliable information about the third parties’ screening processes and outcomes, which can help assess their suitability and risk level.

The other options are incorrect because they are either inappropriate or ineffective methods of validating pre-employment screening attributes. Reviewing evidence of web search of social media sites (A) is inappropriate because it may violate the privacy and data protection rights of the third parties and their employees, as well as expose the organization to potential bias and discrimination claims. Providing and sampling complete personnel files to demonstrate unique screening results (B) is ineffective because it may not reflect the actual screening attributes of the third parties, as they may have different screening criteria, standards, and methods than the organization. Requiring evidence of drug testing © is inappropriate because it may not be relevant or necessary for the nature and scope of the third-party relationship, and it may also conflict with the laws and regulations of different jurisdictions that prohibit or limit such testing. References:

https://www.onetrust.com/blog/third-party-risk-management/

Risk registers are tools that help organizations document, monitor, and manage their third party risks. They typically include information such as the risk description, category, source, impact, likelihood, rating, owner, status, and action plan. Risk registers enable organizations to prioritize their risks, assign responsibilities, track progress, and report on their risk posture. According to the CTPRP Study Guide, "A risk register is a tool for capturing and managing risks throughout the third-party lifecycle. It provides a comprehensive view of the organization’s third-party risk profile and facilitates risk reporting and communication."1 Similarly, the GARP Best Practices Guidance for Third-Party Risk states, "A risk register is a tool that records and tracks the risks associated with third parties. It helps to identify, assess, and prioritize risks, as well as to assign ownership, mitigation actions, and target dates."2

References:

• CTPRP Study Guide
• GARP Best Practices Guidance for Third-Party Risk

In patch management, testing is the most crucial factor when conducting post-cybersecurity incident analysis related to systems and applications. Proper testing of patches before deployment ensures that they effectively address vulnerabilities without introducing new issues or incompatibilities that could impact system functionality or security. Testing allows organizations to verify that the patch resolves the identified security issue without adversely affecting the system or application's performance. It also helps in identifying potential conflicts with existing configurations or dependencies. Effective testing strategies include regression testing, performance testing, and security testing to ensure comprehensive validation of the patch's effectiveness and safety before widespread deployment. This approach aligns with best practices in patch management, emphasizing the importance of thorough testing to mitigate the risk of unintended consequences and ensure the continued security and stability of systems and applications.

References:

• Industry standards such as ISO/IEC 27001 (Information Security Management) highlight the importance of a systematic approach to managing patches, including the role of testing in assessing the effectiveness and impact of patches.
• Resources like "Patch Management Best Practices" from the Center for Internet Security (CIS) provide guidance on developing and implementing a patch management program that includes rigorous testing procedures to ensure patches are safely and effectively applied.

One of the key elements of a robust information security policy is the definition and implementation of requirements for third party governance and oversight. This means that the vendor should have clear and consistent processes and procedures for managing and monitoring the information security risks and controls of their subcontractors, suppliers, or service providers. Third party governance and oversight should include the following aspects12:

• Establishing criteria and standards for selecting and evaluating third parties based on their information security capabilities and performance
• Conducting regular and comprehensive assessments and audits of third parties’ information security policies, practices, and incidents
• Ensuring contractual agreements and service level agreements (SLAs) with third parties include information security clauses and obligations
• Maintaining visibility and communication with third parties regarding their information security status and issues
• Implementing corrective actions and remediation plans for any identified information security gaps or weaknesses
• Terminating or suspending the relationship with third parties that fail to meet the information security expectations or requirements If a vendor’s response does not specify any requirements for third party governance and oversight, it should trigger further investigation of their information security policies. This indicates that the vendor may not have a comprehensive and effective approach to managing the information security risks and impacts of their extended network of partners. This could expose the vendor and their clients to potential data breaches, cyberattacks, compliance violations, or reputational damages. Therefore, the vendor should be asked to provide more details and evidence of how they ensure the information security of their third parties, and how they address any information security incidents or issues involving their third parties. References:
• 1: Third-Party Information Security Risk Management Policy - SecurityStudio
• 2: Ensuring Data Protection for Third Parties: Best Practices | UpGuard Blog

Remote access is any connection made to an organization’s internal network and systems from an external source by a device or host. Remote access can enable greater worker flexibility and productivity, but it also poses significant security risks, such as unauthorized access, data leakage, malware infection, or network compromise. Therefore, it is important to evaluate a third party’s use of remote access within their information security policy, which should define the roles, responsibilities, standards, and procedures for remote access.

One of the key components of evaluating a third party’s use of remote access within their information security policy is identifying the use of multifactor authentication. Multifactor authentication is a method of verifying the identity of a remote user by requiring two or more factors, such as something the user knows (e.g., password, PIN), something the user has (e.g., token, smart card), or something the user is (e.g., fingerprint, face). Multifactor authentication enhances the security of remote access by making it harder for attackers to impersonate or compromise legitimate users. According to the NIST Guide to Enterprise Telework, Remote Access, and Bring Your Own Device (BYOD) Security1, multifactor authentication should be used for all remote access, especially for high-risk situations, such as accessing sensitive data or privileged accounts.

The other options are not components of evaluating a third party’s use of remote access within their information security policy. Maintaining blocked IP address ranges, reviewing the testing and deployment procedures to networking components, and providing guidelines to configuring ports on a router are all examples of network security controls, but they are not specific to remote access. They may be part of the overall information security policy, but they are not sufficient to assess the security of remote access. References:

• NIST Guide to Enterprise Telework, Remote Access, and Bring Your Own Device (BYOD) Security
• How to Implement an Effective Remote Access Policy
• Why Managing Third-Party Access Requires A Better Approach

TPRM compliance requirements are the rules and expectations that an organization must follow when engaging with third parties, such as vendors, suppliers, partners, or contractors. These requirements are derived from various sources, such as laws, regulations, standards, frameworks, contracts, policies, and best practices. However, relying solely on regulatory mandates to define and structure TPRM compliance requirements is a false statement, because123:

• Regulatory mandates are not the only source of TPRM compliance requirements. Organizations may also need to consider other factors, such as industry benchmarks, customer expectations, stakeholder interests, ethical principles, and social responsibility.
• Regulatory mandates are not always comprehensive, clear, or consistent. Organizations may face different or conflicting regulations across jurisdictions, sectors, or domains. Organizations may also need to interpret and apply the regulations to their specific context and risk profile, which may require additional guidance or expertise.
• Regulatory mandates are not always sufficient, effective, or efficient. Organizations may need to go beyond the minimum requirements of the regulations to achieve their business objectives, mitigate their risks, or enhance their performance. Organizations may also need to adopt more flexible, scalable, and innovative approaches to TPRM compliance, rather than following a rigid, one-size-fits-all, or check-the-box model.

Therefore, the correct answer is B. Organizations rely on regulatory mandates to define and structure TPRM compliance requirements, as this is a false statement regarding the risk factors an organization may include when defining TPRM compliance requirements. References:

• 1: Understanding TPRM Compliance: A Comprehensive Guide | Prevalent
• 2: What Is Third-Party Risk Management (TPRM)? 2024 Guide | UpGuard
• 3: Third-Party Risk Management and ISO Requirements for 2022 | Reciprocity