Contractually obligating the supplier to follow privacy laws is the best way to mitigate the risk of violating privacy laws when transferring personal information to a supplier, because it ensures that the supplier is legally bound to comply with the applicable laws and regulations that protect the privacy and security of the personal information. This also creates a clear accountability and liability for the supplier in case of a privacy breach, and defines the rights and obligations of both parties in relation to the personal information. The other options are not the best ways to mitigate the risk of violating privacy laws, although they may also be helpful in reducing the likelihood or impact of a privacy breach. Encrypting the data while in transit to the supplier, requiring independent audits of the supplier's control environment, and utilizing blockchain during the data transfer are examples of technical or assurance controls that aim to protect the confidentiality, integrity, and availability of the personal information, but they do not address the legal or contractual aspects of the privacy laws. References = CRISC: Certified in Risk & Information Systems Control Sample Questions

is incorrect. The cost management plan is the input to the perform quantitative risk analysis process.

Section: Volume D