CTCM - Certified Texas Contract Manager Risk Assessment and Management Questions and Answers

Question 1

According to the Texas Government Code, state agencies are required to develop a purchasing accountability and risk analysis procedure. At a minimum, this procedure must provide for assessing the risk of:

Accepted Answer

Fraud, abuse, or waste in the contractor selection process and contract provisions.

Answer

Texas Government Code §2261.256 specifically requires that the risk analysis procedure must provide for assessing the risk of fraud, abuse, or waste in the contractor selection process, contract provisions, and payment methods.

Question 2

A contract manager for a Texas state agency is overseeing a multi-year IT services contract. After the first year, the contractor experiences significant staff turnover, including the loss of their lead project manager. According to best practices for risk management, what is the contract manager's most appropriate immediate action?

Accepted Answer

Update the contract's risk assessment to reflect the new potential for performance issues and discuss mitigation strategies with the contractor.

Answer

Risk assessment is an ongoing process throughout the life of a contract. A significant change, such as the loss of key personnel, introduces new performance risks. The correct action is to formally re-evaluate and document this new risk and then work with the contractor on a plan to mitigate it, ensuring contract performance is not compromised.

Question 3

Which of the following best describes the primary purpose of classifying a contract as 'high-risk' during a risk assessment?

Accepted Answer

To determine if the contract requires enhanced contract monitoring.

Answer

A key outcome of the risk assessment process is to identify contracts that pose a greater risk to the agency. These 'high-risk' contracts must then receive enhanced contract monitoring to mitigate potential issues and ensure successful performance.

Question 4

A contract manager is developing a risk mitigation plan for a complex construction contract. Which of the following is an example of a 'risk transfer' strategy?

Accepted Answer

Requiring the contractor to obtain performance bonds and liability insurance.

Answer

Risk transfer is a strategy that involves contractually shifting the financial consequences of a particular risk to a third party. Requiring performance bonds and insurance are classic examples, as they transfer the risk of non-performance or liability from the state agency to the surety or insurance company.

Question 5

During the acquisition planning phase for a new software system, a Texas agency identifies a potential risk that the chosen technology may become obsolete within the contract term. All of the following are appropriate risk mitigation strategies to consider EXCEPT:

Accepted Answer

Ignoring the risk because technology always changes.

Answer

Effective risk management requires proactively addressing identified risks. Ignoring a significant risk like technological obsolescence is not a valid strategy. The other options (technology refreshment clauses, shorter renewal periods, and requesting a roadmap) are all proactive measures to mitigate this specific risk.

CTCM - Certified Texas Contract Manager Practice Test

CTCM - Certified Texas Contract Manager Practice Test

CTCM - Certified Texas Contract Manager Risk Assessment and Management Questions and Answers