Certified in the Governance of Enterprise IT (CGEIT) — Question 294

When evaluating the process for acquiring third-party IT resources, management identified several suppliers with repeated downtime issues impacting the enterprise. Which of the following is the BEST approach to help ensure future service delivery in accordance with business objectives?

Answer options

• A. Establish key risk indicators (KRIs)
• B. Implement contract monitoring
• C. Establish key performance indicators (KPIs)
• D. Appoint a procurement oversight committee

Correct answer: B

Explanation

Implementing contract monitoring is crucial because it allows the organization to track supplier performance and compliance with agreed-upon service levels, thereby reducing the risk of repeated downtime. Although establishing KRIs and KPIs are beneficial for risk and performance assessment, they do not provide the direct oversight of supplier contracts that is necessary to ensure improved service delivery. Appointing a procurement oversight committee may help in the decision-making process, but it does not directly address the monitoring of existing contracts.