A key requirement of an outsource contract involving critical business systems is the establishment of the organization's right to conduct independent security reviews of the provider's security controls. A legally binding data protection agreement is also critical, but secondary to choice A, which permits examination of the actual security controls prevailing over the system and. as such, is the more effective risk management tool. Network encryption of the link between the organization and the provider may well be a requirement, but is not as critical since it would also be included in choice A. A joint risk assessment of the system in conjunction with the outsource provider may be a compromise solution, should the right to conduct independent security reviews of the controls related to the system prove contractually difficult.

Section: INFORMATION SECURITY GOVERNANCE
Explanation:
Self-assessments provide the best feedback on readiness and permit identification of items requiring remediation. Directing regulators to a specific person or department, or assessing previous reports, is not as effective. The legal department should review all formal inquiries but this does not help prepare for a regulatory review.

Explanation/Reference:
Reference https://m.isaca.org/Certification/Additional-Resources/Documents/CISM-Item-Development- Guide_bro_Eng_0117.pdf (14)