AI Vendor and Supply Chain Management AAISM Practice Questions (Page 6)

Questions 26–30

1. 26application · medium

   A government agency is considering an AI vendor for a critical infrastructure project. The vendor is a foreign company with a strong technical reputation. The agency is concerned about the vendor's long-term viability and potential for espionage. What should the agency do as part of vendor due diligence?

   • AAsk the vendor to sign a non-disclosure agreement to protect sensitive information.
   • BRequire the vendor to store all data within the agency's country.
   • CRely on the vendor's existing security certifications to mitigate risks.
   • DConduct a thorough background check including financial stability, reputation, and security posture, with special attention to foreign ownership and control.
   Reveal Solution Discussion Select an answer first
2. 27application · medium

   A pharmaceutical company is ending its relationship with an AI vendor that had access to clinical trial data. The company wants to ensure that the vendor does not retain any data and that the data is securely destroyed. What should the company do?

   • ATake no action because the contract automatically ensures data deletion.
   • BAsk the vendor to delete the data and rely on their confirmation.
   • CEnforce the exit strategy that requires the vendor to return or destroy all data and provide a certificate of destruction.
   • DImmediately terminate the contract and stop all communication with the vendor.
   Reveal Solution Discussion Select an answer first
4. 28application · medium

   A telecommunications company has an AI vendor that provides network optimization. The vendor has been reliable, but the company wants to ensure that the vendor's security controls remain effective over time. What is the BEST approach?

   • AWait for a security incident to occur before reviewing the vendor's controls.
   • BRely on the vendor's annual security report.
   • CImplement a continuous monitoring program that includes regular security assessments and performance reviews.
   • DConduct a one-time security assessment at the start of the contract.
   Reveal Solution Discussion Select an answer first
5. 29foundation · easy

   What is the purpose of an exit strategy in vendor management?

   • ATo extend the vendor contract automatically
   • BTo negotiate a lower price for the next contract
   • CTo transfer all vendor responsibilities to another vendor
   • DTo plan for secure termination of the vendor relationship, including data return and destruction
   Reveal Solution Discussion Select an answer first
6. 30foundation · easy

   What is the purpose of continuous monitoring of a vendor?

   • ATo reduce the vendor's contractual obligations
   • BTo replace the need for initial vendor assessments
   • CTo eliminate all risks associated with the vendor
   • DTo track the vendor's performance and security controls throughout the relationship
   Reveal Solution Discussion Select an answer first