Management of Contracted Services and Relationships CGEIT Practice Questions (Page 7)

Questions 31–35

1. 31expert · hard

   A financial institution is outsourcing its customer service operations to a vendor that will have access to customer financial data. The institution is subject to strict regulatory requirements regarding data privacy and security. The vendor is located in a country with less stringent data protection laws. The institution's legal team is concerned about compliance. What should the institution do?

   • ARely on the vendor's certification as proof of compliance.
   • BRequire the vendor to comply with the institution's data protection policies and applicable laws.
   • CAvoid outsourcing to any vendor in a country with less stringent laws.
   • DTransfer the data to the vendor without restrictions because the vendor is responsible.
   Reveal Solution Discussion Select an answer first
2. 32application · medium

   An enterprise is negotiating a contract with a new IT infrastructure vendor. The vendor proposes a fixed-price model with a single service level for all services. The enterprise's IT department wants to ensure that critical systems receive higher availability than non-critical systems. What should the enterprise negotiate?

   • AA higher overall price to ensure the vendor can meet the highest service level for all services.
   • BTiered service levels with corresponding pricing and remedies for each tier.
   • CA penalty clause that applies only to the most critical systems.
   • DA single service level for all services to simplify the contract.
   Reveal Solution Discussion Select an answer first
4. 33foundation · easy

   What is a key element of effective vendor relationship management?

   • AMinimizing all contact with the vendor
   • BKeeping all information confidential from the vendor
   • CAvoiding any conflict resolution
   • DRegular communication and collaboration
   Reveal Solution Discussion Select an answer first
5. 34foundation · easy

   Which mechanism helps ensure that a contracted service provider complies with enterprise policies?

   • ARelying solely on the provider's verbal assurances
   • BIncluding compliance requirements in the contract
   • CAssuming the provider is always compliant
   • DDeferring compliance checks until contract renewal
   Reveal Solution Discussion Select an answer first
6. 35application · medium

   An organization has decided not to renew its contract with an IT outsourcing provider. The organization wants to transition the services to a new provider with minimal disruption. What should the organization do before the contract ends?

   • ASign a new contract with the outgoing provider to avoid transition.
   • BDevelop a transition plan that includes knowledge transfer, data migration, and a timeline.
   • CWait until the contract ends to begin the transition to avoid overlap costs.
   • DAsk the outgoing provider to delete all data to ensure confidentiality.
   Reveal Solution Discussion Select an answer first