Certified in Risk and Information Systems Control (CRISC) — Question 973

Which of the following observations from a third-party service provider review would be of GREATEST concern to a risk practitioner?

Answer options

• A. The service contract is up for renewal in less than thirty days.
• B. Key third-party personnel have recently been replaced.
• C. Monthly service charges are significantly higher than industry norms.
• D. Service level agreements (SLAs) have not been met over the last quarter.

Correct answer: D

Explanation

The correct answer is D because unmet service level agreements (SLAs) indicate that the provider is not delivering the expected quality of service, which poses a significant risk. While the other options raise concerns, such as contract renewals and personnel changes, they do not directly impact the service quality as much as failing to meet SLAs.