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Difficulty: EasyThird-Party Risk Management and Supply Chain Oversight

An organization is onboarding a third-party cloud service provider to support its customer support operations. To ensure accountability, the security team must document measurable performance targets, such as minimum uptime requirements and incident response timeframes. Which of the following agreements should be established with the provider to define these operational metrics?

  1. Service Level Agreement (SLA)Answer
  2. B
    Non-Disclosure Agreement (NDA)
  3. C
    Memorandum of Understanding (MOU)
  4. D
    Interconnection Security Agreement (ISA)

Answer

Service Level Agreement (SLA)
A Service Level Agreement (SLA) is specifically designed to set measurable operational targets, including uptime guarantees, availability expectations, and incident response windows for vendor services.

Step-by-Step Solution

1
Identify the core operational requirement from the scenario
The requirement is to formalize measurable targets for service availability, system uptime, and incident response windows.
Third-party risk management relies on distinct agreements depending on whether the requirement involves confidentiality, joint operational intent, technical connectivity, or performance guarantees.
2
Select the appropriate third-party agreement type
A Service Level Agreement (SLA) directly establishes concrete metrics such as 99.9% uptime, maximum allowable latency, and response time thresholds.
SLAs provide objective criteria for evaluating vendor performance and enforcing contractual remedies if targets are missed.

Key Concept

Third-Party Risk Agreements - Service Level Agreement (SLA)
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Topics

Third-Party Risk Management and Supply Chain Oversight

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