Understand Outsourcing and Cloud Contract Design CCSP Practice Questions (Page 2)

Questions 6–10

1. 6application · medium

   A mid-sized company is considering a cloud provider for its primary data storage. The provider is a small startup with a promising technology but limited financial history. The company's risk manager is concerned about the provider's long-term viability and the potential for the provider to go out of business. Which contractual provision would BEST protect the company's data in the event of the provider's failure?

   • AA data escrow arrangement with a third party
   • BA right-to-audit clause
   • CA strong SLA with high availability guarantees
   • DA source code escrow agreement
   Reveal Solution Discussion Select an answer first
2. 7foundation · easy

   Which strategy is most effective for mitigating vendor lock-in risk in a cloud contract?

   • ASigning a multi-year contract with no exit clause
   • BNegotiating for data portability and the use of open standards
   • CUsing proprietary APIs and data formats
   • DAvoiding any contractual commitments
   Reveal Solution Discussion Select an answer first
4. 8foundation · easy

   What is the primary purpose of cyber risk insurance in a cloud outsourcing arrangement?

   • ATo transfer some of the financial risk of cyber incidents, such as data breaches, to an insurer
   • BTo prevent all cyber attacks from occurring
   • CTo guarantee the cloud provider's uptime
   • DTo replace the need for security controls
   Reveal Solution Discussion Select an answer first
5. 9foundation · easy

   What is the purpose of specifying security requirements in a cloud contract?

   • ATo transfer all security responsibility to the customer
   • BTo guarantee the provider will never experience a security incident
   • CTo eliminate the need for security audits
   • DTo define the security controls and measures the provider must implement to protect the customer's data
   Reveal Solution Discussion Select an answer first
6. 10application · medium

   A company is negotiating a cloud contract for a new project. The project has specific deliverables, timelines, and milestones that need to be met. The company wants to ensure that these project-specific requirements are clearly documented and agreed upon. Which document should be used for this purpose?

   • AThe Service Level Agreement (SLA)
   • BThe Master Service Agreement (MSA)
   • CThe Data Processing Agreement (DPA)
   • DThe Statement of Work (SOW)
   Reveal Solution Discussion Select an answer first