Learn which component of a service level agreement (SLA) provides the strongest assurance that service provider production problems will be resolved quickly. Includes a detailed explanation to help you ace the ISACA CISA certification exam.
Table of Contents
Question
Which the following component of a service level agreement (SLA) provides the GREATEST assurance that service provider production issues will be resolved promptly?
A. Right to audit the service provider upon request
B. Penalties for noncompliance
C. Documented processes for dispute resolution
D. Indemnity clause against liabilities
Answer
B. Penalties for noncompliance
Explanation
Penalties for noncompliance provide the greatest assurance that service provider production issues will be resolved promptly.
An SLA is a contract between an IT service provider and a customer that specifies the key service level targets and responsibilities of both parties. While all the listed components can be important parts of an SLA, monetary penalties for missing agreed-upon service levels create the strongest financial incentive for the provider to quickly resolve any production problems that arise.
The right to audit, dispute resolution processes, and indemnity clauses are valuable, but don’t have the same direct impact as financial penalties:
- The right to audit gives transparency but doesn’t ensure speedy issue resolution.
- Dispute resolution processes are for disagreements between the parties, not production issues.
- Indemnity clauses address liability for damages but not the speed of resolving problems.
In contrast, having to pay penalties for extended downtime or service degradation motivates providers to dedicate maximum effort and resources to rapidly troubleshoot and fix production outages and performance issues, in order to minimize financial losses. The threat of penalties drives providers to prepare thorough incident response and business continuity plans in advance.
So in summary, while a well-crafted SLA should ideally include all these components, penalties for noncompliance are the single most effective clause for ensuring that the service provider resolves production issues with the utmost urgency. Understanding this is critical for the CISA exam and for negotiating impactful SLAs as an IT auditor.
ISACA CISA certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the ISACA CISA exam and earn ISACA CISA certification.