Which type of contract termination is MOST likely to occur after failure to remediate assessment...

Termination for cause is the type of contract termination that is most likely to occur after failure to remediate assessment findings. This is because termination for cause is based on a breach of contract by the third-party, such as non-compliance, poor performance, fraud, or misconduct. Failure to remediate assessment findings indicates that the third-party has not met the contractual obligations or expectations of the entity, and thus exposes the entity to increased risk and liability. Termination for cause allows the entity to end the contract immediately or after a notice period, and to seek damages or remedies from the third-party. Termination for cause is different from other types of contract termination, such as:

Regulatory/supervisory termination, which is triggered by a change in law or regulation that affects the legality or feasibility of the contract.

Termination for convenience, which is exercised by the entity without any fault or breach by the third-party, usually for strategic or operational reasons.

Normal termination, which is the natural expiration of the contract term or the completion of the contract scope. References:

Shared Assessments. (2020). Certified Third Party Risk Professional (CTPRP) Study Guide1

Fusion Risk Management. (2021). Exit Strategy for Terminating a Third Party2

Volkov, M. (2016). Third-Party Risk Management – Part 2: Contract Termination3