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Exam CGEIT topic 1 question 374 discussion

Actual exam question from Isaca's CGEIT
Question #: 374
Topic #: 1
[All CGEIT Questions]

Which of the following should be done FIRST when concerns have been identified regarding the financial viability of a potential software supplier?

  • A. Perform a risk assessment
  • B. Implement an escrow agreement
  • C. Include a right-to-audit clause in the contract
  • D. License the intellectual property
Show Suggested Answer Hide Answer
Suggested Answer: A 🗳️

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MDMA786
3 months, 2 weeks ago
Selected Answer: B
Answer is B. As per Cgeit Manual. The source code should be received either from the vendor initially or there should be provisions for acquiring the source code in the event that the vendor goes out of business. Usually, these clauses are part of a software escrow agreement in which a third party holds the software in escrow should such an event occur. The acquiring company should ensure that product updates and program fixes are included in the escrow agreement.
upvoted 1 times
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yihwen
1 year, 4 months ago
The answer is A. Perform a risk assessment. When concerns have been identified regarding the financial viability of a potential software supplier, the first thing that should be done is to perform a risk assessment. This will help to identify the potential risks associated with working with the supplier and to develop mitigation strategies.
upvoted 2 times
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aqui2_jedyah
1 year, 10 months ago
The key word we must note is "concerns", notice they did not say "risk". If a concern is identified, the next course of action is to verify whether the concern is of any major consequence to the organization. Thus, in this case, a risk assessment seems like the most suitable answer. If the results of the risk assessment confirms the concern, an escrow agreement should be used. What are your thoughts?
upvoted 2 times
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WongY
3 years, 2 months ago
Why not B?
upvoted 1 times
GLin
3 years, 1 month ago
B is Correct
upvoted 1 times
Ramye
2 years, 11 months ago
B can be correct if this was done in the beginning but in this case the concerns came sometimes after the agreement was done, so in this case answer should be A. But looking to hear other explanations why the answer could be B.
upvoted 1 times
Ramye
2 years, 11 months ago
Reread the question and it’s the potential supplier so B seems correct.
upvoted 1 times
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C (25%)
B (20%)
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