Service level agreement (SLA) penalties are a risk mitigation technique that compensates customers for failures by the cloud service provider. Managing Cloud principles explain that SLAs define performance commitments such as availability, response time, and reliability.
When a provider fails to meet these commitments, SLA penalties—often in the form of service credits or financial compensation—are applied. While penalties do not prevent failures, they provide accountability and partial financial remediation.
Recovery time objectives define recovery goals, data protection requirements address security controls, and suspension clauses govern service termination. None of these compensate customers directly. Therefore, SLA penalties are the correct mitigation technique.
UESTION NO: 121 [Conducts Risk Management]
Which risk is assumed by an enterprise that chooses to use vendor-provided cloud resources?
A. Incompatible infrastructure
B. Multitenant deployments
C. Lack of skilled technical personnel
D. Loss of certification
Answer: B
By choosing vendor-provided cloud resources, an enterprise inherently assumes the risk associated with multitenant deployments. Managing Cloud principles explain that public and some community cloud environments are built on shared infrastructure where multiple customers’ workloads coexist on the same physical hardware.
Although strong logical isolation mechanisms are implemented by cloud providers, multitenancy introduces risks such as data leakage, side-channel attacks, and resource contention. These risks do not exist to the same degree in dedicated on-premises environments. Enterprises must therefore rely on the provider’s ability to enforce isolation, access control, and monitoring.
The other options are not intrinsic cloud risks. Incompatible infrastructure can be addressed through architecture design, lack of skilled personnel is an internal organizational issue, and loss of certification relates to compliance management. Therefore, multitenant deployments represent the risk assumed when using vendor-provided cloud resources.
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