BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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False
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True
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Either A or B
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None of the above
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Detailed explanation-1: -In the context of third party risk management (TPRM), vendor due diligence is the process by which an organization examines a current or potential third party vendor’s risk to its business operations. It’s often a regulatory requirement in guidelines such as those issued by the OCC and the FFIEC.
Detailed explanation-2: -Third-Party Risk Management (TPRM) is the process of analyzing and minimizing risks associated with outsourcing to third-party vendors or service providers. There are many types of digital risks within the third-party risk category. These could include financial, environmental, reputational, and security risks.
Detailed explanation-3: -At its simplest, enhanced due diligence is the additional screening that a company should perform on high-risk third parties, to gain the best understanding possible of their identities and the compliance risks they might pose to your business.
Detailed explanation-4: -There are five basic steps that are taken to manage risk; these steps are referred to as the risk management process. It begins with identifying risks, goes on to analyze risks, then the risk is prioritized, a solution is implemented, and finally, the risk is monitored.