AI Vendor and Supply Chain Management AAISM Practice Questions (Page 4)

Questions 16–20

1. 16application · medium

   A university is evaluating an AI vendor for student admissions. The vendor is a small company that has been in business for only one year. The university is concerned about the vendor's ability to sustain operations and protect sensitive student data. What should the university do?

   • AAsk the vendor to sign a contract that holds them liable for any data breach.
   • BProceed with the vendor because they offer the best price.
   • CRequire the vendor to use a specific cloud provider for data storage.
   • DConduct vendor due diligence including financial stability checks, references, and security posture assessment.
   Reveal Solution Discussion Select an answer first
2. 17application · medium

   A manufacturing company is ending its contract with an AI vendor that had access to proprietary design data. The company wants to ensure that the vendor does not retain any copies of the data. What should the company do?

   • AAsk the vendor to delete the data and trust their confirmation.
   • BImmediately terminate the contract and stop all communication with the vendor.
   • CTake no action because the contract automatically ensures data deletion.
   • DInvoke the contractual exit strategy that requires the vendor to return or destroy all data and provide a certificate of destruction.
   Reveal Solution Discussion Select an answer first
4. 18application · medium

   An e-commerce company's AI vendor has detected a security incident that may affect the company's customer data. The vendor has notified the company. What should the company do to ensure a coordinated response?

   • AActivate the incident response plan that includes defined roles, communication channels, and escalation procedures with the vendor.
   • BAsk the vendor to handle the incident independently and provide a summary later.
   • CWait for the vendor to provide a full incident report before taking any action.
   • DImmediately terminate the contract to sever ties with the vendor.
   Reveal Solution Discussion Select an answer first
5. 19foundation · easy

   Which activity is an example of continuous vendor monitoring?

   • AConducting a one-time background check before signing the contract
   • BReviewing the vendor's security audit reports on a regular basis
   • CNegotiating the contract price annually
   • DCreating a supply chain map at the start of the relationship
   Reveal Solution Discussion Select an answer first
6. 20foundation · easy

   What is the purpose of including contractual security requirements in a vendor agreement?

   • ATo transfer all security responsibility to the vendor
   • BTo reduce the cost of the vendor services
   • CTo eliminate the need for ongoing vendor monitoring
   • DTo define and enforce security, privacy, and compliance clauses
   Reveal Solution Discussion Select an answer first