CMP Risk Management & Mitigation Flashcards

A 'residual risk' is best defined as:

Answer: The remaining risk after mitigation measures have been applied

Even after applying mitigation strategies, some level of exposure typically remains — that leftover exposure is the residual risk the organization accepts.

Which gate review criterion most directly addresses risk readiness before advancing a capture pursuit?

Answer: Adequacy and completeness of the risk mitigation plan

Gate reviews evaluate whether risks are identified, owned, and actively mitigated before authorizing continued investment in the pursuit.

When a capture manager applies a Monte Carlo simulation, the primary goal is to:

Answer: Model a range of probable cost or schedule outcomes using probabilistic inputs

Monte Carlo simulation runs thousands of scenarios using probability distributions to replace single-point estimates with a realistic range of outcomes.

Reputational risk in capture management refers to:

Answer: Damage to the company's standing that reduces win probability or future opportunities

Poor past performance ratings, bid protests, or public controversies erode customer trust and can systematically undermine competitive position on future pursuits.

The 'risk owner' assigned in a capture risk register is primarily responsible for:

Answer: Monitoring the risk and executing its mitigation plan throughout the pursuit

Assigning ownership ensures accountability — each risk owner tracks status and drives mitigation actions so identified risks are actually managed.

Which statement best describes 'opportunity risk' in capture management?

Answer: The strategic risk of failing to pursue or win a high-value contract

Opportunity risk highlights the strategic cost of missing a high-value pursuit, recognizing that inaction carries its own form of risk.