The statement that compliance requirements should be identical for all third parties is false. A core principle of a mature Third-Party Risk Management (TPRM) program is the risk-based approach. This means that the level of due diligence, contractual requirements, and ongoing monitoring must be proportional to the level of risk each third party presents. Applying a one-size-fits-all approach is inefficient, costly, and fails to focus resources on the highest-risk relationships, potentially leaving the organization exposed to significant threats.

A. Industry influence: This is true. Industries like finance (e.g., FFIEC) and healthcare (e.g., HIPAA) have specific regulations that dictate TPRM compliance requirements.

C. Geographic location: This is true. A third party's location determines which data privacy laws (e.g., GDPR, CCPA) and other regulations apply.

D. Data sensitivity: This is true. The type of data a third party accesses (e.g., PII, intellectual property) is a primary factor in defining security and compliance requirements.

1. Shared Assessments. (2023). Certified Third Party Risk Professional (CTPRP) Body of Knowledge. The Program Governance section emphasizes the necessity of a risk-based approach and tiering of third parties to apply appropriate levels of oversight.

2. Office of the Comptroller of the Currency. (2013). OCC Bulletin 2013-29: Third-Party Relationships: Risk Management Guidance. Page 8 states that the level of due diligence and oversight should be commensurate with the level of risk.