CPM CPM Risk Management & Procurement 2

Question 1

A CPM project manager is evaluating two vendors using a weighted scoring model. Vendor A scores 85 on quality (weight 40%) and 70 on cost (weight 60%). What is Vendor A's weighted score?

Accepted Answer

76

Answer

Weighted score = (85 × 0.40) + (70 × 0.60) = 34 + 42 = 76.

Question 2

Which type of contract places the GREATEST financial risk on the buyer?

Accepted Answer

Cost Plus Percentage of Cost (CPPC)

Answer

CPPC reimburses all costs plus a percentage of those costs as profit, giving the seller no incentive to control spending — maximizing buyer risk.

Question 3

The risk response plan for a CPM project identifies a residual risk. What is a residual risk?

Accepted Answer

A risk that remains after risk response strategies have been implemented

Answer

Residual risks are those that persist after planned risk responses have been applied and must be monitored throughout the project.

Question 4

In CPM procurement, a Request for Proposal (RFP) is BEST used when:

Accepted Answer

The buyer needs both a price and a detailed technical solution from sellers

Answer

An RFP solicits comprehensive responses including technical approaches, methodologies, and pricing for complex or non-standard requirements.

Question 5

Which risk management process involves reviewing risk trigger conditions and determining whether risk responses are working effectively?

Accepted Answer

Monitor Risks

Answer

Monitor Risks tracks identified risks, identifies new risks, evaluates risk response effectiveness, and updates the risk register throughout the project.

(CPM) Certified Project Manager Practice Test

(CPM) Certified Project Manager Practice Test

CPM CPM Risk Management & Procurement 2