Outsourcing payment processing to a third-party vendor completely transfers all regulatory compliance and data protection responsibilities away from the hiring organization.

### Why this is right The statement is false because the exercise asks participants to identify whether the firm or vendor is responsible and assess related risks. It does not assign automatic, exclusive responsibility to either party. ### The concept A third-party service can handle part of a business process, but the organization still needs to understand the service, its responsibilities, and the risks associated with its use. Vendor management policies and clear communication help the organization assess those issues. The exercise calls for evaluating responsibility in the specific incident rather than assuming that using a cloud billing platform transfers every compliance duty. ### Terms - **Vendor management**: The process of overseeing service providers and addressing risks connected with their services. - **Compliance**: Meeting applicable requirements, policies, and procedures. ### Watch out Using a vendor does not, by itself, answer who is responsible for a particular compliance or incident-response action. ### Remember Determine responsibilities from the relevant arrangements and requirements; do not assume they belong entirely to the firm or vendor.