Having an exit strategy is a good risk management practice under the remediation and termination step of the Third-Party Risk Management life cycle. This step involves taking necessary actions to address identified risks and, if necessary, terminating the relationship with the third party. An exit strategy or termination clause provides a clear plan for ending the relationship with the third party if the situation deteriorates beyond repair. This could be due to a variety of reasons such as the third party's failure to meet contractual obligations, significant changes in the third party's business condition, or the identification of unacceptable risks during the continuous monitoring process. Having an exit strategy ensures that the organization is prepared for such scenarios and can minimize potential losses and disruptions to its operations.

Choice A is incorrect. Defining trigger events for reassessment is an important part of the risk management process, but it is not specifically associated with the remediation or termination step. This practice typically falls under the monitoring and review stage of the Third-Party Risk Management life cycle, where ongoing assessment of third-party performance and risk exposure takes place.