CTPRP Exam Dumps - Certified Third-Party Risk Professional (CTPRP)

An outsourcer’s vendor risk assessment process should include all the steps mentioned in options A, B, and C, as they are essential for ensuring a consistent, comprehensive, and effective evaluation of the vendor’s performance, compliance, and risk profile. However, option D is not a necessary or recommended part of the vendor risk assessment process, as it does not reflect the actual level of risk posed by the vendor, but rather the availability of resources within the outsourcer’s organization. Defining assessment frequency based on resource capacity could lead to under-assessing or over-assessing vendors, depending on the outsourcer’s workload, budget, and staff. This could result in missing critical issues, wasting time and money, or creating gaps in the vendor oversight program. Therefore, option D is the correct answer, as it is the only one that does not belong to the vendor risk assessment process. References: The following resources support the verified answer and explanation:

• Shared Assessments’ CTPRP Job Guide, page 10, section 2.1.1, states that “The frequency of assessments should be based on the risk tier of the third party, not on the availability of resources.”
• Guide to Vendor Risk Assessment, section “Step 3: Determine the Frequency of Vendor Risk Assessments”, explains that “The frequency of vendor risk assessments should be based on the level of risk each vendor poses to your organization, not on the availability of resources or convenience.”
• How to Conduct a Successful Vendor Risk Assessment in 9 Steps, section “Step 8: Determine the Frequency of Vendor Risk Assessments”, advises that “The frequency of vendor risk assessments should be based on the level of risk each vendor poses to your organization, not on the availability of resources or convenience.”

 An IT asset management program is a set of processes and tools that help an organization manage its IT assets throughout their lifecycle, from acquisition to disposal. An IT asset management program should include the following components1234:

• Maintaining inventories of systems, connections, and software applications: This component involves creating and updating a comprehensive and accurate list of all IT assets owned or used by the organization, including their location, ownership, configuration, and status. This helps the organization optimize the use of its IT resources, reduce costs, and ensure compliance with licensing and regulatory requirements.
• Tracking and monitoring availability of vendor updates and any timelines for end of support: This component involves keeping track of the latest updates, patches, and security fixes provided by the vendors of the IT assets, as well as the end-of-life dates and support options for the assets. This helps the organization maintain the security, performance, and functionality of its IT assets, and plan for timely replacement or migration of obsolete or unsupported assets.
• Identifying and tracking adherence to IT asset end-of-life policy: This component involves defining and implementing a policy for retiring and disposing of IT assets that are no longer needed, useful, or supported by the organization. This helps the organization reduce risks, costs, and environmental impacts associated with IT asset disposal, and ensure compliance with data protection and disposal regulations.

Defining application security standards for internally developed applications is not a component of an IT asset management program, but rather a component of an application development and security program. An application development and security program is a set of processes and tools that help an organization design, develop, test, deploy, and maintain secure and reliable applications, whether they are internally developed or acquired from external sources. An application development and security program should include the following components5 :

• Defining application security standards for internally developed applications: This component involves establishing and enforcing a set of security requirements and best practices for the applications developed by the organization, such as secure coding, testing, and deployment methodologies, security controls, and vulnerability management. This helps the organization ensure the confidentiality, integrity, and availability of its applications and data, and prevent or mitigate security breaches and incidents.
• Performing application security assessments for externally acquired applications: This component involves conducting security reviews and audits of the applications acquired from external sources, such as vendors, partners, or open source communities, before integrating them into the organization’s IT environment. This helps the organization identify and address any security risks, gaps, or weaknesses in the applications, and ensure compatibility and compliance with the organization’s security policies and standards.

References:

• ITAM: The ultimate guide to IT asset management
• IT asset management: 10 best practices for success
• Asset Management: The Five Core Components
• The Fundamentals of Asset Management
• Application Development and Security Program
• Application Security Best Practices

 This answer is correct because a change at outsourcer due to merger and acquisition (M&A) is the least likely indicator to trigger a reassessment of an existing vendor. This is because the outsourcer is not the direct vendor of the organization, but rather a third party that the vendor uses to perform some of its services. Therefore, the impact of the change at the outsourcer on the vendor’s performance and risk level may not be significant or immediate. However, the other indicators (A, B, and C) are more likely to trigger a reassessment of an existing vendor, as they directly affect the vendor’s operations, capabilities, and compliance status. For example:

• A change in vendor location or use of new fourth parties may introduce new risks such as geopolitical, regulatory, or cybersecurity risks that need to be evaluated and mitigated.
• A change in scope of existing work may alter the vendor’s access to the organization’s data or systems, which may require additional security measures and controls to protect the confidentiality, integrity, and availability of the information assets.
• A change in regulation that impacts service provider requirements may impose new obligations or standards on the vendor that need to be verified and monitored to ensure compliance and avoid penalties or fines. References:
• How to Conduct a Successful Vendor Risk Assessment in 9 Steps, Case IQ
• Why You Need to Reassess Vendor Risk on an Ongoing Basis, ThirdPartyTrust
• Vendor Assessment and Evaluation Guide, Smartsheet

Remote monitoring of HVAC, Smoke, Fire, Water, or Power systems best reflects components of an environmental controls testing program. These systems are critical to ensuring the physical security and operational integrity of data centers and IT facilities. Environmental controls testing programs are designed to verify that these systems are functioning correctly and can effectively respond to environmental threats. This includes monitoring temperature and humidity (HVAC), detecting smoke or fire, preventing water damage, and ensuring uninterrupted power supply. Regular testing and monitoring of these systems help prevent equipment damage, data loss, and downtime due to environmental factors.

References:

• Environmental control standards such as ISO/IEC 27001 (Information Security Management) include requirements for the testing and monitoring of physical and environmental security controls.
• The "Data Center Operations Manual" by the Uptime Institute provides detailed guidelines on the testing and maintenance of environmental control systems to ensure the resilience and reliability of data center operations.

In the ‘Defense in Depth’ security model, the innermost layer typically focuses on protecting the most sensitive and critical assets, which are often categorized as 'Private internal'. This layer includes security controls and measures that are designed to safeguard the core, confidential aspects of an organization's infrastructure and data. It encompasses controls such as access controls, encryption, and monitoring of sensitive systems and data to prevent unauthorized access and ensure data integrity and confidentiality. The 'Private internal' layer is crucial for maintaining the security of critical information and systems that are essential to the organization's operations and could have the most significant impact if compromised. Implementing robust security measures at this layer is vital for mitigating risks associated with physical access to critical infrastructure and sensitive information.

References:

• Security frameworks and standards, including NIST SP 800-53 (Security and Privacy Controls for Federal Information Systems and Organizations) and the SANS Institute's guidelines on implementing 'Defense in Depth', provide detailed recommendations on securing the innermost layers of an organization's information systems.
• Publications such as "Physical Security Principles" by ASIS International offer insights into best practices for securing the private internal layer, including access control systems, surveillance, and intrusion detection mechanisms.

The concept of least privilege is a security principle that requires giving each user, service, and application only the permissions needed to perform their work and no more12. It is one of the most important concepts in network and system security, as it reduces the attack surface and the risk of unauthorized access, data breaches, and malware infections12. The statement B best describes this concept, as it implies that the vendor follows the principle of least privilege by granting people access to the minimum necessary to do their job. The other statements do not capture the essence of the concept, as they either describe other security practices (such as dual authorization and separation of duties) or limit the scope of the concept to a specific type of access (such as root and administrator access).

References:

• 1: 9 Ways to Prevent Third-Party Data Breaches in 2024 | UpGuard
• 2: Best Practice Guide to Implementing the Least Privilege Principle - Netwrix

The Cardholder Data Environment (CDE) is the part of the network that stores, processes, or transmits cardholder data or sensitive authentication data, as well as any connected or security-impacting systems123. The CDE is subject to the Payment Card Industry Data Security Standard (PCI DSS), which is a set of requirements and guidelines for ensuring the security and compliance of payment card transactions123. The PCI DSS defines various artifacts that are reviewed when assessing the CDE, such as:

• The Data Security Standards (DSS) framework: This is the document that specifies the 12 high-level requirements and the corresponding sub-requirements and testing procedures for PCI DSS compliance123. The DSS framework should be used to scope the assessment, meaning to identify and document the systems and components that are in scope for PCI DSS, as well as the applicable requirements and controls for each system and component123. Therefore, option A is a true statement regarding artifacts reviewed when assessing the CDE.
• The Report on Compliance (ROC): This is the report that provides the assessment results completed by a qualified security assessor (QSA) that includes an onsite audit of the CDE123. The ROC is a detailed and comprehensive document that validates the organization’s compliance status and identifies any gaps or deficiencies that need to be remediated123. The ROC is required for merchants and service providers that process more than 6 million transactions annually, or that have suffered a breach or been compromised in the past year123. Therefore, option B is a true statement regarding artifacts reviewed when assessing the CDE.
• The Self-Assessment Questionnaire (SAQ): This is a questionnaire that provides a validation tool for merchants and service providers that are not required to submit a ROC123. The SAQ is a self-assessment tool that allows the organization to evaluate its own compliance status and identify any gaps or deficiencies that need to be remediated123. The SAQ does not provide independent testing of controls, as it is based on the organization’s self-reported answers and evidence123. Therefore, option C is a false statement regarding artifacts reviewed when assessing the CDE.
• A System and Organization Controls (SOC) report: This is a report that provides an independent audit of the internal controls and processes of a service organization, such as a cloud provider, a data center, or a payment processor45. The SOC report is not specific to PCI DSS, but rather to other standards and frameworks, such as SOC 1 (based on SSAE 18), SOC 2 (based on Trust Services Criteria), or SOC 3 (based on SOC 2)45. A SOC report is not sufficient to demonstrate PCI DSS compliance, as it may not cover all the requirements and controls of the PCI DSS, or it may not address the same location or scope as the CDE123. Therefore, option D is a false statement regarding artifacts reviewed when assessing the CDE.

References: The following resources support the verified answer and explanation:

• 1: PCI DSS Quick Reference Guide
• 2: PCI DSS FAQs
• 3: PCI DSS Glossary
• 4: What is a SOC report?
• 5: SOC Reports: What They Are, and Why They Matter

Due diligence is the process of evaluating the risks and opportunities associated with a potential or existing third-party vendor. Due diligence can vary in scope and depth depending on the level of risk that the vendor poses to the organization. Lower risk vendors are those that have minimal impact on the organization’s operations, reputation, or compliance, and that do not handle sensitive or confidential data or systems. For lower risk vendors, conducting due diligence may involve accepting the service provider’s self-assessment questionnaire responses as sufficient evidence of their capabilities, performance, and compliance. A self-assessment questionnaire is a tool that allows the vendor to provide information about their organization, services, processes, controls, and policies. The organization can use the questionnaire to verify the vendor’s identity, qualifications, references, and certifications, and to assess the vendor’s alignment with the organization’s standards and expectations. Accepting the vendor’s self-assessment questionnaire responses as the primary source of due diligence can save time and resources for the organization, and can also demonstrate trust and confidence in the vendor. However, the organization should also ensure that the questionnaire is comprehensive, relevant, and updated, and that the vendor’s responses are accurate, complete, and consistent. The organization should also reserve the right to request additional information or documentation from the vendor if needed, and to conduct periodic reviews or audits of the vendor’s performance and compliance.

The other options do not best describe conducting due diligence of a lower risk vendor, because they either involve more extensive or rigorous methods of due diligence, or they are not directly related to due diligence. Preparing reports to management regarding the status of third party risk management and remediation activities is an important part of monitoring and managing the vendor relationship, but it is not a due diligence activity per se. Reviewing a service provider’s self-assessment questionnaire and external audit report(s) is a more thorough way of conducting due diligence, but it may not be necessary or feasible for lower risk vendors, especially if the external audit report(s) are not readily available or relevant. Requesting and filing a service provider’s external audit report(s) for future reference is a good practice for maintaining documentation and evidence of due diligence, but it is not a due diligence activity itself.

References:

• Third Party Risk Management (TPRM) | Shared Assessments
• Vendor Due Diligence Strategy Guide and Checklist | Prevalent
• Vendor due diligence: a practical guide and checklist