CMP CMP Risk Management & Mitigation 2 — Questions and Answers
Question 1: A capture team learns a key teaming partner is experiencing serious financial difficulties. This is best classified as which type of risk?
- Supply chain / partner risk (Correct answer)
- Technical performance risk
- Schedule compression risk
- Regulatory compliance risk
Correct answer: Supply chain / partner risk
Financial instability in a teaming partner represents a supply chain risk that can jeopardize both the proposal submission and contract performance commitments.
Question 2: Which risk analysis technique uses structured 'what-if' scenarios to stress-test a capture plan against potential adverse events?
- Earned value analysis
- Scenario analysis (Correct answer)
- Cost-benefit analysis
- Competitive intelligence gathering
Correct answer: Scenario analysis
Scenario analysis explores how different risk events could unfold and tests whether the capture strategy remains viable under adverse conditions.
Question 3: According to PMBOK risk response strategies, 'avoid' means:
- Changing the plan to eliminate the risk or protect objectives from its impact (Correct answer)
- Accepting the risk without any action
- Sharing the risk with a teaming partner
- Reducing the probability of the risk occurring through preventive measures
Correct answer: Changing the plan to eliminate the risk or protect objectives from its impact
Risk avoidance eliminates the threat entirely by altering the scope, schedule, or approach so the risk-triggering condition can no longer occur.
Question 4: In federal capture management, compliance risk most often stems from:
- Failure to meet FAR/DFARS requirements in the proposal (Correct answer)
- Overestimating the price-to-win figure
- Missing an internal gate review deadline
- Under-resourcing the color team review process
Correct answer: Failure to meet FAR/DFARS requirements in the proposal
Non-compliance with FAR and DFARS requirements can disqualify a proposal entirely, making regulatory adherence a top risk category in federal pursuits.
Question 5: What is a 'contingency reserve' in capture cost planning?
- Budget set aside to handle identified risks if they materialize during performance (Correct answer)
- The profit margin built into the final contract price
- Overhead allocated to cover indirect cost pools
- Funds reserved for executive compensation upon award
Correct answer: Budget set aside to handle identified risks if they materialize during performance
A contingency reserve is specifically linked to known-unknown risks already documented in the risk register, distinguishing it from a management reserve for unforeseen events.
Question 6: Which risk is most commonly associated with sole-source justification in government capture?
- Legal challenge or bid protest from competitors (Correct answer)
- Technical non-compliance in the proposal
- Cost overrun during contract performance
- Staffing shortages on the pursuit team
Correct answer: Legal challenge or bid protest from competitors
Sole-source awards are frequently protested by competitors who argue the justification was improper, creating legal and schedule risk for the awardee.
CMP CMP Risk Management & Mitigation 2
A capture team learns a key teaming partner is experiencing serious financial difficulties.
This is best classified as which type of risk?