Vendor Evaluation and Coordination CAIPM Practice Questions (Page 4)

Questions 16–20

1. 16application · medium

   An insurance company has contracted an AI vendor to develop a claims-processing system. The contract includes a service level agreement (SLA) that specifies a maximum response time of 3 seconds for API calls and a monthly uptime of 99.5%. The vendor has consistently met these targets. However, the company's program manager is concerned about the vendor's data privacy practices. What should the program manager do?

   • ARequest the vendor to sign a new contract with stricter SLA terms.
   • BConduct a periodic audit of the vendor's data privacy controls and include the results in the vendor performance review.
   • CAssume the vendor is compliant because the SLA is being met.
   • DTerminate the contract because the vendor may have privacy issues.
   Reveal Solution Discussion Select an answer first
2. 17application · medium

   A bank has an SLA with an AI vendor for a credit-scoring model. The SLA includes a clause that the vendor must notify the bank within 24 hours of any data breach. The vendor experiences a breach but notifies the bank after 72 hours. The bank's compliance officer wants to understand the implications. What is the most important action for the bank?

   • AAsk the vendor for a written apology but take no further action.
   • BTerminate the contract immediately.
   • CDocument the breach notification delay and assess the regulatory and contractual consequences.
   • DIgnore the delay because the breach was resolved.
   Reveal Solution Discussion Select an answer first
4. 18expert · hard

   A company has a long-term contract with an AI vendor for a critical business process. The vendor has been performing well, but the company's new AI strategy requires a shift to a different technology stack that the vendor does not currently support. The program manager wants to maintain the relationship while addressing the strategic shift. What should the program manager do?

   • AImmediately terminate the contract and find a new vendor that supports the new stack.
   • BEngage the vendor in a strategic roadmap discussion to explore how they can adapt to the new technology stack.
   • CAsk the vendor to reduce prices to compensate for the lack of support for the new stack.
   • DContinue using the current vendor for the existing system and ignore the strategic shift.
   Reveal Solution Discussion Select an answer first
5. 19application · medium

   A university is selecting an AI vendor for a research project that involves sensitive student data. The project has a strict timeline because grant funding ends in nine months. The university's procurement office requires a formal RFP process. The AI program manager wants to ensure the selection process is both compliant and timely. What is the best approach?

   • ACreate a streamlined RFP with clear evaluation criteria and a strict deadline for vendor responses.
   • BSkip the RFP and directly negotiate with a known vendor to save time.
   • CIssue a standard RFP with no deadline and wait for all vendors to respond.
   • DSelect a vendor based on a quick online search without formal evaluation.
   Reveal Solution Discussion Select an answer first
6. 20foundation · easy

   When evaluating an AI vendor for a project that will process sensitive customer data, which criterion is most directly related to ensuring the vendor can handle the data in a legally compliant manner?

   • AThe vendor's marketing reputation
   • BCompliance with relevant regulations such as GDPR or CCPA
   • CScalability of the vendor's infrastructure
   • DThe vendor's user interface design
   Reveal Solution Discussion Select an answer first