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Service level agreement

A service level agreement specifies expected service, measures, responsibilities, reporting and escalation between a provider and customer or organisational units. It can improve clarity within complex structures, but targets must reflect meaningful outcomes and controllability. Define terms, data ownership, exclusions and remedies so the provider cannot meet a narrow metric while failing the underlying service. Review the agreement as demand and risks change.

Worked example

An IT provider agrees restoration times by incident severity, availability definitions and escalation steps rather than a single average response-time target.

Common mistake

A quick acknowledgement is not the same as resolution. Poorly defined service measures can reward the wrong behaviour.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA APM Direct September 2026–June 2027