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CDPSE · Question #124

Which of the following is the BEST way to ensure third-party providers that process an organization's personal data are addressed as part of the data privacy strategy?

The correct answer is C. Require independent audits of the providers' data privacy controls. Requiring independent audits of third-party providers' data privacy controls provides objective, evidence-based assurance that those controls are actually in place and functioning. It goes beyond documentation or promises. Data dictionaries (A) describe data structures but do…

Privacy Governance

Question

Which of the following is the BEST way to ensure third-party providers that process an organization's personal data are addressed as part of the data privacy strategy?

Options

  • ARequire data dictionaries from service providers that handle the organization's personal data.
  • BOutsource personal data processing to the same third party
  • CRequire independent audits of the providers' data privacy controls
  • DRequire service level agreements (SLAs) to ensure data integrity while safeguarding

How the community answered

(23 responses)
  • A
    4% (1)
  • B
    13% (3)
  • C
    74% (17)
  • D
    9% (2)

Explanation

Requiring independent audits of third-party providers' data privacy controls provides objective, evidence-based assurance that those controls are actually in place and functioning. It goes beyond documentation or promises. Data dictionaries (A) describe data structures but do not verify privacy practices. Outsourcing to a single third party (B) consolidates risk rather than managing it. SLAs (D) set contractual expectations but are only as effective as the enforcement and verification behind them - without audits, SLA compliance is unverified. Independent audits are the most rigorous mechanism for validating that third parties meet the organization's privacy obligations.

Topics

#Third-party risk management#Vendor assessment#Privacy audits#Data privacy strategy

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