Practice Test Geeks(CPM) Certified Project Manager Practice Test
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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

  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?

    Answer: 76

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

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

    Answer: Cost Plus Percentage of Cost (CPPC)

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

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

    Answer: A risk that remains after risk response strategies have been implemented

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

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

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

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

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

    Answer: Monitor Risks

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

  6. A CPM project manager uses a decision tree to evaluate two project paths. Path A has a 60% chance of a $100,000 gain and a 40% chance of a $40,000 loss. What is the EMV of Path A?

    Answer: $44,000

    EMV = (0.60 × $100,000) + (0.40 × -$40,000) = $60,000 - $16,000 = $44,000.