Third-Party and Supply Chain Risk CRISC Practice Questions (Page 1)

Questions 1–5

1. 1foundation · easy

   What is the purpose of an exit provision in a vendor contract?

   • ATo set performance metrics
   • BTo protect confidential information
   • CTo allocate liability
   • DTo define the terms for terminating the relationship
   Reveal Solution Discussion Select an answer first
2. 2expert · hard

   A manufacturing company relies on a single supplier for a critical raw material. The supplier is located in a region prone to political instability. The company has a low risk appetite for supply chain disruptions. Which of the following is the BEST risk response?

   • ADevelop a dual-sourcing strategy with a second supplier in a different region.
   • BAccept the risk because the supplier has been reliable for years.
   • CNegotiate a contract with the supplier to guarantee supply.
   • DIncrease inventory levels of the raw material to cover potential disruptions.
   Reveal Solution Discussion Select an answer first
4. 3foundation · easy

   Which of the following is a principle of supply chain risk management?

   • AFocusing only on direct suppliers
   • BIgnoring external factors
   • CIdentifying dependencies across the supply chain
   • DEliminating all risks
   Reveal Solution Discussion Select an answer first
5. 4foundation · easy

   Which of the following is an example of ongoing vendor monitoring?

   • AReviewing vendor security reports quarterly
   • BConducting a one-time due diligence
   • CSigning a contract
   • DTerminating the vendor
   Reveal Solution Discussion Select an answer first
6. 5application · medium

   A company has decided to terminate its contract with an IT services vendor due to poor performance. The contract includes a transition assistance clause. What is the MOST important consideration during the exit process?

   • AImmediately revoke the vendor's access to all systems.
   • BEnsure the orderly transfer of data and services to a new vendor or in-house team.
   • CPublicly announce the termination to warn other companies.
   • DIgnore the transition assistance clause because the vendor is underperforming.
   Reveal Solution Discussion Select an answer first