BUISENESS MANAGEMENT
RISK MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Conduct the TPRM on the vendor to understand their background and potential risk(s) imposes to the Company
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Sign the sale and purchase agreement with the vendor
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Either A or B
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None of the above
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Detailed explanation-1: -A vendor risk management program reduces the frequency and severity of data breaches, data leaks and cyber attacks involving third and fourth-parties, protecting sensitive data, PII, PHI, intellectual property and ensuring business continuity.
Detailed explanation-2: -As a key stakeholder within the third-party life cycle, procurement should protect the organization from third-party risk by negotiating contractual agreements that protect the strategic objectives of the organization and prevent legal risk.
Detailed explanation-3: -Third party risk management enables organizations to monitor and assess the risk posed by third parties to identify where it exceeds the threshold set by the business. This allows organizations to make risk-informed decisions and reduce the risk posed by vendors to an acceptable level.