CAM Risk Assessment & Mitigation 2

Question 1

A key account manager discovers that a top client generates 40% of total revenue. Which risk category does this situation primarily represent?

Accepted Answer

Concentration risk

Answer

Concentration risk arises when a disproportionate share of revenue depends on a single client, partner, or segment.

Question 2

Which risk mitigation strategy involves transferring potential financial loss to a third party through contractual arrangements?

Accepted Answer

Risk transfer

Answer

Risk transfer shifts the financial burden of a potential loss to another party, such as through insurance or indemnity clauses.

Question 3

A client's payment history shows increasingly delayed invoices over three months. What is the MOST appropriate first action for the account manager?

Accepted Answer

Conduct a proactive credit risk review and open a dialogue with the client

Answer

A proactive credit risk review combined with open client dialogue allows early intervention before the situation escalates to default.

Question 4

In risk management, what does a 'risk register' primarily serve to document?

Accepted Answer

Identified risks, their likelihood, impact, and assigned owners

Answer

A risk register is a centralized log that captures each identified risk along with its probability, potential impact, mitigation plan, and responsible owner.

Question 5

Which of the following BEST describes 'residual risk' in account management?

Accepted Answer

Risk that remains after mitigation controls have been applied

Answer

Residual risk is the level of risk that persists even after all planned mitigation measures have been implemented.

(CAM) Certified Account Manager Practice Test

(CAM) Certified Account Manager Practice Test

CAM Risk Assessment & Mitigation 2