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CISM study material · question 493 of 1000

A supplier's risk profile deteriorates beyond what any mitigation can bring back within tolerance. Which contractual provision does NIST say should exist?

  1. An automatic price reduction proportional to the risk
  2. A requirement for the supplier to indemnify the organisation against any loss that the risk produces
  3. Grounds for termination where changes to supply chain risk cannot be adequately mitigated
  4. A right to audit the supplier's other customers
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Answer: C. Grounds for termination where changes to supply chain risk cannot be adequately mitigated

SP 800-161r1 wants a termination right written in for the case where supply chain risk has moved and cannot be brought back inside acceptable levels by any mitigation.

Source: NIST SP 800-161 Rev. 1 (NIST) — Sec. 3.1.2 The Role of C-SCRM in the Acquisition Process

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