Explanation
The BEST way for an organization to ensure that incident response teams are properly prepared is by conducting tabletop exercises appropriate for the organization.
Tabletop exercises are an effective way to test and validate an organization's incident response plan (IRP) and the readiness of the incident response team. These exercises simulate different scenarios in a controlled environment and allow the team to practice their response procedures, identify gaps, and make improvements to the plan. By conducting regular tabletop exercises, the incident response team can stay current with changes in the threat landscape and ensure that they are prepared to respond to incidents effectively.
According to the Certified Information Security Manager (CISM) Study Manual, "Tabletop exercises are a valuable tool for testing and validating the effectiveness of the IRP and the readiness of the incident response team. These exercises simulate different scenarios in a controlled environment and allow the team to practice their response procedures, identify gaps, and make improvements to the plan." While providing training from third-party forensics firms, obtaining industry certifications, and documenting multiple scenarios for the organization and response steps can all be useful in preparing incident response teams, they are not as effective as conducting tabletop exercises appropriate for the organization.

Section: INFORMATION SECURITY PROGRAM MANAGEMENT

Explanation
Compliance status reporting is the best element of a service contract that would enable an organization to monitor the information security risk associated with a cloud service provider, as it provides the organization with regular and timely information on the cloud service provider's compliance with the agreed-upon security requirements, standards, and regulations. Compliance status reporting also helps the organization to identify any gaps or issues that need to be addressed or resolved, and to verify the effectiveness of the cloud service provider's controls. (From CISM Review Manual 15th Edition) References: CISM Review Manual 15th Edition, page 184, section 4.3.3.2.