AI Vendor and Supply Chain Management AAISM Practice Questions (Page 2)

Questions 6–10

1. 6foundation · easy

   Which action is part of a secure data disposal process when terminating a vendor relationship?

   • ATransferring the data to a third-party storage provider without verification
   • BArchiving the data with the vendor indefinitely
   • CLeaving the data with the vendor for future use
   • DEnsuring the vendor deletes or destroys all copies of the organization's data
   Reveal Solution Discussion Select an answer first
2. 7expert · hard

   A global bank is evaluating an AI vendor for fraud detection. The vendor uses a third-party data enrichment service that processes customer data. The vendor has a strong security posture but the data enrichment service is located in a country with different data protection laws. The bank's compliance team requires that all customer data be processed in compliance with the bank's data residency requirements. What is the BEST course of action?

   • AConduct a supply chain map to identify the data enrichment service and assess its compliance with data residency requirements.
   • BAccept the vendor because they have a strong security posture.
   • CAsk the vendor to use a different data enrichment service that is located in a compliant country.
   • DRequire the vendor to sign a contract that holds them liable for any data protection violations.
   Reveal Solution Discussion Select an answer first
4. 8application · medium

   A bank's AI vendor has experienced a data breach that may have exposed customer information. The bank's incident response team needs to coordinate with the vendor to manage the breach. What is the FIRST step the bank should take?

   • AWait for the vendor to provide a full report before taking any action.
   • BTerminate the contract with the vendor to prevent further damage.
   • CActivate the pre-established incident response coordination procedure with the vendor.
   • DImmediately notify all affected customers about the breach.
   Reveal Solution Discussion Select an answer first
5. 9foundation · easy

   Which clause is typically included in a vendor contract to address data privacy requirements?

   • AA clause specifying the vendor's marketing strategy
   • BA clause specifying the vendor's employee vacation policy
   • CA clause specifying data processing and storage limitations
   • DA clause specifying the vendor's office location
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6. 10application · medium

   A financial services firm is evaluating a new AI vendor that will process customer transaction data. The vendor is a startup with a strong product but limited history. The firm's compliance team requires assurance that the vendor can meet regulatory obligations for data protection. Which action should the firm take FIRST?

   • AConduct a comprehensive vendor risk assessment covering security, compliance, and operational resilience.
   • BRequire the vendor to provide financial statements for the last three years.
   • CImmediately implement continuous monitoring of the vendor's security controls.
   • DNegotiate contractual clauses that mandate regular security audits and data breach notification.
   Reveal Solution Discussion Select an answer first