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CDPSE · Question #95

CDPSE Question #95: Real Exam Question with Answer & Explanation

The correct answer is D: Conducting a risk assessment of all candidate vendors. Conducting a risk assessment of all candidate vendors is the best way to provide assurance that a potential vendor is able to comply with privacy regulations and the organization's data privacy policy, because it allows the organization to evaluate the vendor's privacy practices,

Privacy Governance

Question

Which of the following provides the BEST assurance that a potential vendor is able to comply with privacy regulations and the organization's data privacy policy?

Options

  • AIncluding mandatory compliance language in the request for proposal (RFP)
  • BObtaining self-attestations from all candidate vendors
  • CRequiring candidate vendors to provide documentation of privacy processes
  • DConducting a risk assessment of all candidate vendors

Explanation

Conducting a risk assessment of all candidate vendors is the best way to provide assurance that a potential vendor is able to comply with privacy regulations and the organization's data privacy policy, because it allows the organization to evaluate the vendor's privacy practices, controls, and performance against a set of criteria and standards. A risk assessment can also help to identify any gaps, weaknesses, or threats that may pose a risk to the organization's data privacy objectives and obligations. A risk assessment can be based on various sources of information, such as self- attestations, documentation, audits, or independent verification. A risk assessment can also help to prioritize the vendors based on their level of risk and impact, and to determine the appropriate mitigation or monitoring actions.

Topics

#Vendor management#Third-party risk management#Privacy assessment#Due diligence

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