Management of Contracted Services and Relationships CGEIT Practice Questions (Page 4)

Questions 16–20

1. 16foundation · easy

   What is typically included in an SLA to address situations where the provider fails to meet performance targets?

   • AThe provider's internal quality improvement plan
   • BThe enterprise's disaster recovery plan
   • CRemedies such as service credits
   • DA list of the provider's other clients
   Reveal Solution Discussion Select an answer first
2. 17expert · hard

   An organization has a contract with a vendor that includes a clause allowing the organization to request changes to the service scope. The vendor has been consistently meeting SLAs, but the organization's business needs have changed, requiring additional services. The vendor proposes a significant price increase for the new services. The organization's budget is tight. What should the organization do?

   • ADelay the new services until the next budget cycle.
   • BRequest a competitive bid from other vendors for the new services.
   • CNegotiate the price increase based on market benchmarks and the value of the new services.
   • DAccept the price increase because the new services are needed.
   Reveal Solution Discussion Select an answer first
4. 18application · medium

   A company has a long-term outsourcing contract for application development. The vendor's team is co-located with the company's IT staff, but communication has become strained due to differing expectations about project priorities. The company's project manager wants to improve the relationship. What should the project manager do first?

   • AEstablish a joint governance committee with regular meetings to align priorities and resolve conflicts.
   • BStop sharing non-essential information with the vendor until the relationship improves.
   • CSend a formal complaint to the vendor's senior management.
   • DRenegotiate the contract to include more detailed specifications.
   Reveal Solution Discussion Select an answer first
5. 19foundation · easy

   What is the purpose of including legal considerations in contract negotiation?

   • ATo specify the vendor's internal hiring practices
   • BTo define the enterprise's internal reporting structure
   • CTo determine the vendor's marketing budget
   • DTo protect both parties' rights and define remedies for breach
   Reveal Solution Discussion Select an answer first
6. 20expert · hard

   A company has an SLA with a cloud provider that includes a credit-based remedy for downtime. The company experiences a major outage that lasts 4 hours, but the provider claims the outage was due to a 'force majeure' event and refuses to provide credits. The company's legal team is unsure if the force majeure clause applies. What should the company do?

   • AImmediately escalate to litigation to recover the credits.
   • BReview the force majeure clause and the outage details to determine if the event qualifies.
   • CAccept the provider's claim to maintain a good relationship.
   • DTerminate the contract because the provider is unreliable.
   Reveal Solution Discussion Select an answer first