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
Penalties for noncompliance (B) are the most effective mechanism because they directly link service performance to financial or operational consequences, ensuring providers prioritize resolving production issues to avoid penalties
B. Penalties for noncompliance.
Penalties for noncompliance create a strong incentive for the service provider to meet the agreed-upon service levels and resolve issues promptly. These penalties can be financial or involve other consequences that motivate the provider to avoid breaches of the SLA.
How is Hayati going to vote for an answer and ruin the results without adding any argument or context, just states "Why B?"
Let me tell you "Why B?" Because including a penalty for noncompliance could be a financial penalty and companies want to get paid. Therefore, if they are not meeting the agreement they will not be getting paid to some degree. Money talks and is what will force them to stay within the bounds that were agreed upon.
C just states that they have a documented process which is great. But say its the weekend and no one is required to be on call but something breaks and it needs to be resolved. But the agreement does not put any requirements on it. Then it won't get fixed till Monday. Whereas if there is an agreement in place that if something is not resolved in a 2 hour period there would be a reduced payment (or something), this would push them to resolve the issue within the 2 hour period.
Here's why: Penalties for noncompliance - this directly incentivizes the service provider to meet the agreed-upon service levels. Financial penalties or other forms of repercussions for failing to resolve issues promptly create a strong motivation for the provider to prioritize and address problems. While the other options are valuable, they don't provide the same direct and immediate pressure for timely resolution. Why the other options are less effective in this scenario:
A. Right to audit the service provider upon request: Audits are important for verification, but they don't guarantee immediate issue resolution.
C. Documented processes for dispute resolution: While essential for handling disputes, they don't necessarily expedite the resolution of production issues.
D. Indemnity clause against liabilities: This protects the client from financial liabilities, but it doesn't directly address or ensure prompt issue resolution.
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