Management of Contracted Services and Relationships CGEIT Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A healthcare organization is selecting a cloud provider to host its patient management system. The organization must comply with data residency laws requiring patient data to remain within the country. The vendor evaluation team has narrowed the options to two providers: one with a local data center and strong security certifications, and another with lower pricing but data centers only in other regions. What should the organization do during vendor selection?

   • AChoose the lower-priced provider and rely on contractual clauses to ensure data residency.
   • BSelect the provider with the local data center because it satisfies the residency requirement.
   • CPerform due diligence on both providers, including verifying data center locations and compliance certifications, before deciding.
   • DAsk the lower-priced provider to build a new data center in the country.
   Reveal Solution Discussion Select an answer first
2. 22foundation · easy

   Which risk is commonly associated with outsourcing IT services?

   • AElimination of all security risks
   • BIncreased internal headcount
   • CGuaranteed cost savings
   • DLoss of control over service delivery
   Reveal Solution Discussion Select an answer first
4. 23foundation · easy

   What is the purpose of an exit strategy in contract termination?

   • ATo avoid all contractual obligations
   • BTo increase the vendor's revenue
   • CTo ensure a smooth transition of services away from the vendor
   • DTo extend the contract indefinitely
   Reveal Solution Discussion Select an answer first
5. 24expert · hard

   A government agency is selecting a vendor to manage its IT infrastructure. The agency requires high security clearance for all vendor staff and compliance with strict data sovereignty laws. Two vendors meet the technical requirements: Vendor A has a strong security track record but is more expensive; Vendor B is cheaper but has had minor compliance issues in the past. The agency's budget is limited. What should the agency do?

   • ASelect Vendor B to stay within budget and manage the compliance issues through the contract.
   • BConduct a detailed risk assessment of Vendor B's compliance issues and determine if they are acceptable.
   • CReject both vendors and seek a new procurement process.
   • DSelect Vendor A because security and compliance are non-negotiable.
   Reveal Solution Discussion Select an answer first
6. 25foundation · easy

   Which activity is part of managing vendor relationships?

   • AConducting the initial vendor selection
   • BDefining the SLA metrics
   • CTerminating the contract without notice
   • DResolving conflicts that arise during the engagement
   Reveal Solution Discussion Select an answer first