Agreement Types

A thorough understanding of the different agreement types is pivotal in third-party risk assessments, as they establish clear, contractual foundations, outlining responsibilities, expectations, and liabilities, and thereby mitigate unforeseen vulnerabilities: These agreement types are normally one of the following:

• Service-Level Agreement (SLA): An SLA is a contractual arrangement between a service provider and a recipient that outlines the expected level of service. It defines specific metrics to measure service standards, response, or resolution times and usually includes remedies or penalties for the provider if the agreed-upon service levels are not met.
• Memorandum of Agreement (MOA): An MOA is legally binding. It meticulously outlines the terms and conditions and detailed roles and responsibilities of the parties involved. The MOA serves to clarify the expectations and obligations of each party to avoid disputes and ensure mutual understanding and cooperation...