Following a review of a third-party vendor, it is MOST important for an organization to ensure:
Correct Answer: A
A review of a third-party vendor is a process that involves examining and evaluating the performance, quality, and compliance of the vendor that provides a product or service to the organization1. A review of a third-party vendor can help to identify and address the risks and issues that may arise from the vendor relationship, such as data breaches, service disruptions, contract violations, or reputation damage2. Following a review of a third-party vendor, it is most important for an organization to ensure that the results of the review are accurately reported to management, as this will enable the management to make informed and timely decisions and actions based on the findings and recommendations of the review. Accurate reporting of the results of the review will also help to establish and maintain the trust and transparency between the organization and the vendor, and to demonstrate the accountability and responsibility of the organization for its vendor risk management3. Identified findings are reviewed by the organization, results of the review are validated by internal audit, and identified findings are approved by the vendor are not the most important things to ensure following a review of a third-party vendor, as they do not provide the same level of impact and value as accurate reporting of the results of the review. Identified findings are reviewed by the organization is a process that involves analyzing and interpreting the outcomes and implications of the review of a third-party vendor, and determining the appropriate risk responses and actions to address the findings4. This is an important step in the vendor risk management process, but it is not the most important thing to ensure following a review of a third-party vendor, as it does not communicate or inform the management or the vendor of the results of the review. Results of the review are validated by internal audit is a process that involves verifying and confirming the accuracy and reliability of the review of a third-party vendor, and providing assurance and advice on the adequacy and effectiveness of the vendor risk management. This is an important step in the vendor risk management process, but it is not the most important thing to ensure following a review of a third-party vendor, as it does not report or share the results of the review with the management or the vendor. Identified findings are approved by the vendor is a process that involves obtaining the consent and agreement of the vendor on the outcomes and recommendations of the review of a third-party vendor, and ensuring their cooperation and compliance with the risk responses and actions. This is an important step in the vendor risk management process, but it is not the most important thing to ensure following a review of a third-party vendor, as it does not report or inform the management of the results of the review. References = 1: The guide to third-party vendor reviews - TerraTrue HQ | TerraTrue2: 4 Tips For Organizations To Evaluate Third-Party Vendors - Forbes Advisor3: Vendor Risk Management: Best Practices for 2023 - Venminder4: [Risk and Information Systems Control Study Manual, Chapter 3: Risk Response, Section 3.1: Risk Response Options, pp. 113-115.] : [IT Risk Resources | ISACA] : Who Is Considered a Third Party or Vendor? - Venminder :
[Risk and Information Systems Control Study Manual, Chapter 2: IT Risk Assessment, Section 2.1: Risk Identification, pp. 57-59.] : [Risk and Information Systems Control Study Manual, Chapter 4: Risk and Control Monitoring and Reporting, Section 4.2: Risk Monitoring, pp. 189-191.] : [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section
5.1: Control Design, pp. 233-235.] : [Risk and Information Systems Control Study Manual, Chapter 5:
Information Systems Control Design and Implementation, Section 5.2: Control Implementation, pp. 243-245.]
1: [Risk and Information Systems Control Study Manual, Chapter 5: Information Systems Control Design and Implementation, Section 5.3: Control Monitoring and Maintenance, pp. 251-253.]
