CAM Risk Analysis 2 — Questions and Answers
Question 1: A Control Account Manager identifies a supplier delay that could impact a critical milestone. What is the FIRST action the CAM should take?
- Document the risk in the project risk register and assess its probability and impact (Correct answer)
- Immediately reallocate management reserve to cover the delay
- Rebaseline the control account to absorb the schedule slip
- Wait until the variance exceeds thresholds before reporting
Correct answer: Document the risk in the project risk register and assess its probability and impact
Risks must first be documented and assessed before any response or funding action is taken.
Question 2: In quantitative risk analysis, which technique uses repeated random sampling to model the range of possible cost or schedule outcomes?
- Monte Carlo simulation (Correct answer)
- Sensitivity analysis
- Delphi technique
- Pareto analysis
Correct answer: Monte Carlo simulation
Monte Carlo simulation runs thousands of random iterations to produce a probability distribution of outcomes.
Question 3: Which reserve is controlled at the program level, outside the Performance Measurement Baseline, and used for realized risks within the contract scope?
- Management reserve (Correct answer)
- Contingency reserve held in the control account
- Undistributed budget
- Schedule margin owned by the CAM
Correct answer: Management reserve
Management reserve sits outside the PMB and is released by the program manager for in-scope realized risks.
Question 4: A risk has a 40% probability of occurring and would cost $200,000 if it occurs. What is its expected monetary value (EMV)?
- $80,000 (Correct answer)
- $200,000
- $40,000
- $120,000
Correct answer: $80,000
EMV is probability times impact: 0.40 x $200,000 = $80,000.
Question 5: A CAM decides to subcontract a high-risk fabrication task to a vendor with proven expertise, shifting the consequence to the vendor. Which risk response strategy is this?
- Transfer (Correct answer)
- Avoid
- Mitigate
- Accept
Correct answer: Transfer
Shifting risk ownership and consequence to a third party, such as through subcontracting or insurance, is risk transfer.
Question 6: During which recurring EVMS activity is a CAM MOST likely to identify new risks based on cost and schedule variance trends?
- Monthly control account variance analysis (Correct answer)
- Contract award fee determination
- Initial integrated baseline review only
- Final contract closeout
Correct answer: Monthly control account variance analysis
Monthly variance analysis of CV and SV trends is a primary ongoing source of emerging risk identification.
Question 7: What does a risk's 'trigger' or 'warning indicator' represent?
- An early sign that the risk event is about to occur or has occurred (Correct answer)
- The total cost impact of the risk after it happens
- The person assigned to own the risk
- The date the risk is removed from the register
Correct answer: An early sign that the risk event is about to occur or has occurred
A trigger is an observable early-warning condition signaling that the risk is materializing.
CAM Risk Analysis 2
A Control Account Manager identifies a supplier delay that could impact a critical milestone.
What is the FIRST action the CAM should take?