5.3 Explain the processes associated with third-party risk assessment and management

Question 1

Contracts and Agreements

Answer 1

• Basic Contract: Establishes roles, responsibilities, and terms between two parties.
• Memorandum of Agreement and Memorandum of Understanding:
  
  • MOA: Formal, outlines specific responsibilities.
  • MOU: Less binding, expresses mutual intent.
• Business Partnership Agreement (BPA) / Joint Venture (JV): Defines partnership roles, profit-sharing, decision-making, and ownership.
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