CAM Risk Analysis 3 — Questions and Answers
Question 1: A CAM's control account shows a favorable cost variance, but the risk register lists an unmitigated technical risk in a future work package. How should the CAM report status?
- Report the favorable variance and explicitly note the open risk to future performance in the variance analysis (Correct answer)
- Report only the favorable variance since risks are the risk manager's job
- Offset the favorable variance against the risk exposure and report zero variance
- Delay reporting until the risk is retired
Correct answer: Report the favorable variance and explicitly note the open risk to future performance in the variance analysis
Accurate status requires reporting current performance alongside known risks that threaten future performance.
Question 2: In a probability-and-impact matrix, a risk rated low probability but very high impact should typically be handled how?
- Developed with a contingency or response plan despite its low likelihood (Correct answer)
- Ignored because low probability means it will not occur
- Automatically transferred to the customer
- Removed from the register to keep it concise
Correct answer: Developed with a contingency or response plan despite its low likelihood
High-impact risks warrant response planning even when their probability is low.
Question 3: Which document formally records a risk's description, owner, probability, impact, response strategy, and status?
- The risk register (Correct answer)
- The responsibility assignment matrix
- The work authorization document
- The contract performance report format 1
Correct answer: The risk register
The risk register is the living document that captures all attributes and status of each identified risk.
Question 4: A schedule risk assessment (SRA) applies three-point duration estimates to network activities. Which estimate set is used?
- Optimistic, most likely, and pessimistic durations (Correct answer)
- Budgeted, actual, and forecast durations
- Early start, late start, and float values
- Planned value, earned value, and actual cost
Correct answer: Optimistic, most likely, and pessimistic durations
SRAs use optimistic, most likely, and pessimistic durations to model schedule uncertainty.
Question 5: A CAM adds extra inspection steps and a design review to reduce the probability of a quality escape. Which risk response is being applied?
- Mitigation (Correct answer)
- Acceptance
- Transfer
- Exploitation
Correct answer: Mitigation
Mitigation reduces the probability or impact of a threat through proactive action.
Question 6: When a mitigation plan for a risk requires new budgeted work, where should that effort be planned?
- In the affected control account or work packages through the change control process (Correct answer)
- Directly in management reserve without a budget change
- Outside the EVMS to avoid affecting variances
- In undistributed budget permanently
Correct answer: In the affected control account or work packages through the change control process
Mitigation work must be authorized and budgeted into the baseline via formal change control.
Question 7: What distinguishes an 'issue' from a 'risk' in program management terminology?
- An issue has already occurred, while a risk is a potential future event (Correct answer)
- An issue is always cost-related, while a risk is schedule-related
- An issue is owned by the customer, while a risk is owned by the contractor
- There is no difference; the terms are interchangeable
Correct answer: An issue has already occurred, while a risk is a potential future event
A risk is uncertain and future-oriented, whereas an issue is a realized event requiring management now.
CAM Risk Analysis 3
A CAM's control account shows a favorable cost variance, but the risk register lists an unmitigated technical risk in a future work package.
How should the CAM report status?