CPCM Certified Professional Contract Manager: Contract Risk Assessment and Mitigation 2

Question 1

A contractor requests a contract modification to add a force majeure clause after a supply chain disruption. What is the contracting officer's primary obligation?

Accepted Answer

Evaluate the request against applicable regulations and existing contract terms

Answer

The contracting officer must evaluate modification requests against applicable regulations and existing contract terms before approval or denial.

Question 2

Which risk mitigation strategy involves sharing potential losses with another party through a contractual arrangement?

Accepted Answer

Risk transfer

Answer

Risk transfer shifts the financial burden of a potential loss to another party, commonly achieved through insurance requirements or indemnification clauses.

Question 3

In a cost-plus-fixed-fee (CPFF) contract, which party bears most of the cost risk?

Accepted Answer

The government/buyer

Answer

Under CPFF contracts, the buyer reimburses all allowable costs, so the buyer bears the majority of cost risk if costs exceed estimates.

Question 4

A risk register is BEST described as:

Accepted Answer

A document identifying, analyzing, and tracking project risks throughout the contract lifecycle

Answer

A risk register is a living document used to identify, analyze, prioritize, and monitor risks across the contract lifecycle.

Question 5

Which contract clause is primarily used to allocate the risk of sovereign acts by the U.S. government that affect contract performance?

Accepted Answer

Sovereign acts doctrine

Answer

The sovereign acts doctrine protects the government from liability when a public law or regulation—not a contractual action—affects contractor performance.

CPCM Exam Practice Test

CPCM Exam Practice Test

CPCM Certified Professional Contract Manager: Contract Risk Assessment and Mitigation 2