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ISACA Certified Information Security Manager · Isaca
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RTO is definitely the correct answer here. You want to agree on RTO in SLA if you dont have agreed RTO it means vendor is not bound to fulfill RTO. Testing is good but you cannot test if there is no RTO mentioned in SLA.
C & D are both kind of requirements
Testing gives solid and practical assurance unlike RTO/RPO on paper only. Testing will validate RTO/RPO