CAM Risk Assessment & Mitigation 4

Question 1

A client's key executive sponsor unexpectedly leaves the company. Which risk mitigation approach would BEST protect the account relationship?

Accepted Answer

Develop multi-threaded relationships with multiple stakeholders at the client organization

Answer

Multi-threading ensures the account relationship is not dependent on a single contact, reducing key-person risk within the client organization.

Question 2

When quantifying financial risk in an account, which metric expresses the maximum potential loss over a specific time period at a given confidence level?

Accepted Answer

Value at Risk (VaR)

Answer

Value at Risk (VaR) quantifies the maximum expected loss over a defined period at a specific probability level, commonly used in financial risk assessments.

Question 3

A client requests that your company store sensitive personal data on their behalf without a formal data processing agreement. What risk does this create?

Accepted Answer

Data privacy and regulatory compliance risk

Answer

Processing personal data without a formal agreement violates regulations such as GDPR and CCPA, exposing both parties to significant legal and financial penalties.

Question 4

Which of the following BEST describes a 'risk appetite' statement in account management?

Accepted Answer

The level and type of risk an organization is willing to accept in pursuit of its objectives

Answer

A risk appetite statement defines the boundaries of acceptable risk-taking, guiding account managers in decision-making and escalation protocols.

Question 5

An account manager notices a client's competitor has launched a disruptive product that could significantly reduce the client's revenue. Which risk type does this represent for the account?

Accepted Answer

Strategic/market risk

Answer

Competitive disruption affecting a client's market position represents strategic and market risk, which can cascade into reduced spending and churn.

(CAM) Certified Account Manager Practice Test

(CAM) Certified Account Manager Practice Test

CAM Risk Assessment & Mitigation 4