Which of the following is the GREATEST security risk of two or more companies working together under aMemorandum of Understanding?
Budgetary considerations may not have been written into the MOU, leaving an entity to absorb more cost
than intended at signing.
MOUs have strict policies in place for services performed between the entities and the penalties for
compromising a partner are high.
MOUs are generally loose agreements and therefore may not have strict guidelines in place to protect
sensitive data between the two entities.
MOUs between two companies working together cannot be held to the same legal standards as SLAs.
The document Memorandum of Understanding 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.