CPM Risk Management & Procurement Flashcards
6 cards from real CPM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CPM Risk Management & Procurement flashcards as text
During risk identification for a CPM project, which technique involves structured brainstorming using a hierarchical decomposition of risk categories?
Answer: Risk Breakdown Structure (RBS)
A Risk Breakdown Structure (RBS) organizes identified risks into categories and subcategories using a hierarchical decomposition similar to a WBS.
A CPM project manager performs a qualitative risk analysis. Which output is the PRIMARY result of this process?
Answer: Risk register updates with prioritized risk list
Qualitative risk analysis outputs prioritized risks in the risk register based on probability and impact assessments.
In CPM procurement planning, a 'Time and Materials' contract is MOST appropriate when:
Answer: The scope of work cannot be precisely defined upfront
Time and Materials contracts are used when scope is uncertain, compensating the seller for actual time and materials consumed.
Which risk response strategy involves shifting the negative impact of a risk to a third party, such as through insurance?
Answer: Transfer
Risk transfer moves the financial or operational consequence of a risk to another party, such as purchasing insurance or outsourcing.
A CPM project manager calculates the Expected Monetary Value (EMV) of a risk with a 30% probability of occurring and an impact of -$50,000. What is the EMV?
Answer: -$15,000
EMV = Probability × Impact = 0.30 × (-$50,000) = -$15,000, representing the weighted average outcome of the risk.
During contract closeout in CPM procurement, which activity ensures the seller has met all contractual obligations?
Answer: Formal acceptance and procurement audit
Formal acceptance and a procurement audit confirm the seller fulfilled all contract terms before officially closing the procurement.