QuestionQ55

Privacy Risk Management and Compliance

Which option is the BEST way to manage privacy risk related to outsourcing to a third party?

  • A Utilize a variable sourcing strategy.
  • B Review and approve the vendor's privacy policies.
  • C Require specific controls as part of the contract.
  • D Perform privacy audits of the vendor.
Explanation

Third-party privacy risk is best managed by including explicit, enforceable privacy-control requirements in the contract. Contractual terms establish the safeguards the vendor must implement, define accountability, and provide a basis for monitoring and remediation.

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