CPCM Certified Professional Contract Manager: Contract Risk Assessment and Mitigation 5

Question 1

Which of the following is the BEST indicator that a contract's risk management plan is effective?

Accepted Answer

Identified risks are regularly reviewed and response plans are updated as conditions change

Answer

An effective risk management plan is a living process with ongoing monitoring and updating, not a one-time activity.

Question 2

Under the Anti-Deficiency Act, what is the primary risk associated with a contracting officer obligating funds beyond the appropriated amount?

Accepted Answer

The contracting officer faces personal criminal and civil liability

Answer

The Anti-Deficiency Act prohibits obligating funds in excess of appropriations, and violations can result in personal criminal and civil penalties for the responsible official.

Question 3

A contract includes an economic price adjustment (EPA) clause tied to the Producer Price Index. This clause PRIMARILY manages which type of risk?

Accepted Answer

Cost risk due to inflation or material price fluctuations

Answer

EPA clauses share the risk of cost fluctuations—such as inflation or commodity price changes—between buyer and seller using an objective index.

Question 4

When a contract manager applies the 'superior knowledge' doctrine, it means the government may be liable because:

Accepted Answer

The government possessed critical information the contractor needed but did not disclose it

Answer

The superior knowledge doctrine holds that the government must disclose information it possesses that a contractor would need to perform and could not reasonably be expected to know.

Question 5

Which of the following scenarios BEST represents a secondary risk in contract management?

Accepted Answer

A new risk created as a direct result of implementing a risk response

Answer

Secondary risks emerge from the mitigation actions themselves—for example, hiring a backup supplier to reduce supply chain risk may introduce a quality risk.

CPCM Exam Practice Test

CPCM Exam Practice Test

CPCM Certified Professional Contract Manager: Contract Risk Assessment and Mitigation 5