Which of the following is BEST used to validate compliance with agreed-upon service levels established with a third party that processes personal data?

The correct answer is D. Contractual right to audit. A contractual right to audit gives the organization the legal authority to directly inspect and verify a third party's actual practices, controls, and compliance with agreed-upon service levels - including data privacy obligations. KRIs (A) measure risk thresholds and KPIs (B)…

Privacy Governance

Question

Options

AKey risk indicators (KRIs)
BKey performance indicators (KPIS)
CIndustry benchmarks
DContractual right to audit

How the community answered

(61 responses)

A
25% (15)
B
5% (3)
C
11% (7)
D
59% (36)

Explanation

A contractual right to audit gives the organization the legal authority to directly inspect and verify a third party's actual practices, controls, and compliance with agreed-upon service levels - including data privacy obligations. KRIs (A) measure risk thresholds and KPIs (B) measure performance metrics, but both rely on data the third party self-reports, providing no independent verification. Industry benchmarks (C) compare against general standards, not the specific contractual obligations. Only a right to audit enables objective, enforceable validation of compliance with negotiated terms.

Topics

#Third-party risk management#Contractual audits#Service level agreements (SLAs)#Compliance validation

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