Risk Assessment & Mitigation Flashcards
7 cards from real CAM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Assessment & Mitigation flashcards as text
A long-standing client suddenly requests an unusual volume of customizations outside standard contract terms. From a risk perspective, this pattern MOST likely signals:
Answer: Potential scope creep, financial overextension, or declining satisfaction masked by increased demands
Unusual customization requests outside contract terms can indicate scope creep, dissatisfaction, or a client trying to extract value before churning.
Which qualitative risk assessment method involves gathering expert opinions through structured, anonymous rounds of questionnaires to reach consensus?
Answer: Delphi technique
The Delphi technique uses iterative anonymous expert input to build consensus on risk likelihood and impact without the bias of group dynamics.
What does 'risk velocity' refer to in account risk management?
Answer: The speed at which a risk can materialize and impact the business once triggered
Risk velocity measures how quickly a risk can escalate from identification to impact, helping prioritize response readiness for fast-moving threats.
An account manager is evaluating whether to pursue a contract with a financially distressed client offering a high-margin deal. The MOST prudent risk mitigation approach is:
Answer: Require upfront payment or milestone-based billing tied to deliverables
Upfront or milestone-based billing structures protect against credit risk with financially distressed clients while still capturing the revenue opportunity.
Which of the following is an example of a 'risk trigger' in account management?
Answer: A client's credit rating being downgraded by two notches
A credit rating downgrade is a specific event that signals materially increased credit and financial risk, acting as a trigger for immediate risk review.
When developing a risk mitigation plan, what is the CORRECT sequence of steps?
Answer: Identify → Analyze → Prioritize → Mitigate → Monitor
Effective risk management follows the sequence: identify risks, analyze them, prioritize by severity, develop and apply mitigations, then continuously monitor.
A client operating in a cyclical industry experiences a severe market downturn. Which proactive account management action BEST reduces associated risk?
Answer: Conduct a scenario-planning session with the client to realign contract scope and payment terms
Scenario planning with the client during a downturn demonstrates partnership, surfaces options early, and reduces the likelihood of unplanned churn or default.