Risk Management & Mitigation Flashcards
7 cards from real CBA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Management & Mitigation flashcards as text
A budget analyst identifies that a key federal grant funding 30% of the agency's operations may not be renewed. Which risk response strategy is MOST appropriate?
Answer: Develop contingency budget plans and identify alternative funding sources
Developing contingency plans and alternative funding sources is the appropriate mitigation strategy for a significant funding dependency risk.
In risk-adjusted budgeting, an 'expected value' calculation requires multiplying a risk's potential financial impact by its:
Answer: Probability of occurrence
Expected value (EV) = probability of occurrence × potential financial impact, allowing analysts to prioritize risks quantitatively.
Which tool is MOST commonly used by government budget analysts to visually assess and prioritize multiple risks simultaneously?
Answer: Risk heat map (probability-impact matrix)
A risk heat map plots risks by probability and impact, enabling analysts to visually prioritize which risks require immediate mitigation.
A federal agency's budget is heavily dependent on a single contractor for IT services. This represents which type of concentration risk?
Answer: Vendor/supplier concentration risk
Reliance on a single vendor creates vendor concentration risk, which can disrupt operations and budgets if the contractor fails to deliver.
When Congress passes a continuing resolution (CR) instead of a full appropriations bill, what budget risk does this PRIMARILY create?
Answer: Operational and planning uncertainty risk
Continuing resolutions typically fund agencies at prior-year levels with restrictions, creating planning uncertainty and potential gaps in new program funding.
Which of the following BEST describes a 'risk register' in the context of budget management?
Answer: A comprehensive log cataloging identified risks, their likelihood, impact, and planned responses
A risk register is the primary documentation tool that captures all identified risks along with their probability, impact, owner, and mitigation strategies.
A state agency sets aside 5% of its annual budget in an unobligated reserve account specifically for unexpected cost overruns. This is an example of:
Answer: Budget contingency reserve (management reserve)
Setting aside funds to cover unforeseen cost overruns is the definition of a budget contingency or management reserve, a key risk mitigation tool.