FAC Risk & Compliance

Question 1

What is the primary purpose of risk management in federal contracting?

Accepted Answer

Identify, assess, and mitigate risks

Answer

Increase financial uncertainty

Answer

Eliminate contract oversight

Answer

Ignore compliance requirements

Question 2

Which federal regulation governs ethical conduct in procurement?

Accepted Answer

Federal Acquisition Regulation (FAR)

Answer

Privacy Act

Answer

Freedom of Information Act (FOIA)

Answer

Dodd-Frank Act

Question 3

What is a key element of compliance monitoring in federal contracts?

Accepted Answer

Regular audits and reporting

Answer

Eliminating performance evaluations

Answer

Avoiding contract documentation

Answer

Ignoring regulatory updates

Question 4

What is the purpose of a risk assessment in procurement?

Accepted Answer

Identify threats and develop mitigation strategies

Answer

Reduce supplier competition

Answer

Eliminate compliance reviews

Answer

Encourage sole-source contracting

Question 5

Which entity is responsible for enforcing compliance in government contracts?

Accepted Answer

Office of Federal Procurement Policy (OFPP)

Answer

Small Business Administration (SBA)

Answer

Federal Reserve

Answer

Environmental Protection Agency (EPA)

Question 6

Why is contract compliance critical in federal procurement?

Accepted Answer

Prevents fraud and upholds regulations

Answer

Encourages unregulated spending

Answer

Limits contractor oversight

Answer

Removes performance requirements