Which of the following is the GREATEST security risk of two or more companies working together
under a Memorandum of Understanding?

A.
Budgetary considerations may not have been written into the MOU, leaving an entity to absorb
more cost than intended at signing.

B.
MOUs have strict policies in place for services performed between the entities and the penalties
for compromising a partner are high.

C.
MOUs are generally loose agreements and therefore may not have strict guidelines in place to
protect sensitive data between the two entities.

D.
MOUs between two companies working together cannot be held to the same legal standards as
SLAs.

Explanation:
The Memorandum of Understanding This document is used in many settings in the information
industry. It is a brief summary of which party is responsible for what portion of the work. For
example, Company A may be responsible for maintaining the database server and Company B
may be responsible for telecommunications. MOUs are not legally binding but they carry a degree
of seriousness and mutual respect, stronger than a gentlemen’s agreement. Often, MOUs are the
first steps towards a legal contract.