CGEIT: Certified in the Governance of Enterprise ITDemo

By Isaca · Question Mode

QuestionQ35

Risk Optimization

An enterprise is engaging an outsourcing partner for a long-term arrangement. When is the BEST time for the enterprise to plan for a potential contract termination?

  • A developing the initial contract.
  • B either party decides to terminate the contract.
  • C issues surface in the contractual relationship.
  • D planning for the contract as part of business continuity.
Explanation

Contract-termination and exit provisions should be established while developing the initial outsourcing contract. Early planning defines responsibilities, transition arrangements, data and asset handling, and continuity expectations before either party is under pressure or a dispute arises.

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