CON 200-Risk Management Flashcards
Risk Management is an optional part of acquisition management. (T or F)
False
What are the three (3) overall types of risk in the acquisition process?
Cost, Schedule and Performance
Reasons for contractor debt may include which of the following?
Default in performance, Breach of contract obligations, Overpayment
A “Risk Rating” may be either qualitative or quantitative. (T/F)
TRUE
The debtor, under the Debt Collection Act of 1982, has _______ days from the date of notification to request a review on any unresolved dispute.
30
Which of the following IS NOT a debt collection tool available to the government?
Credit score reduction with Equifax or other credit bureaus.
The following are all common strategies for handling acquisition risks except:
Risk Mitigation.
The contractor, when settling a debt owed to the government by check, the check must be mailed to the responsible government authority and made payable to ________________________.
Treasury of the United States
Contractors typically divide risk into two basic types. What are they?
Business and Program.
The following are all steps in the “Risk Management Process” except:
Risk Mitigation
A measure of the inability to achieve overall acquisition objectives within defined cost, schedule, and performance constraints.
Risk
Late deliveries, political pressure, and changing requirements (user needs the system sooner or user adds requirements) are types of __________risks.
Schedule
The use of new or exotic materials or processes, use of unproven technology, and use of new applications to meet demanding user requirements are types of _______ risks
Performance
Increases in material prices, higher than anticipated labor rates, and other factors that can change current acquisition cost estimates are ______ risks.
Cost
The act or practice of controlling the risk events (possible adverse outcomes) that affect the acquisition.
Risk Management
All unknown or identified risks are
Assumed
________ reallocates the risk from one part of the system to another, or redistributes risks between the government and the contractor, within government agencies, or between members of the contractor team. It means having someone else take accountability for the risk.
Risk Transfer
Risk should be measured in terms of the ______ or likelihood of failing to achieve a particular outcome and the consequences, or impact, of failing to achieve that outcome.
Probability
There is always some risk associated with every acquisition, but remember the time and effort spent on risk management should be _______ for the acquisition.
Appropriate
________ will provide the basis for reporting risk and overall program information, both internally and externally. This information can be used on future acquisitions to help identify the appropriate types of risks and the most successful risk handling strategies.
Documentation
_______ is used to systematically track and evaluate the performance of risk-handling actions against established metrics throughout the acquisition process.
Risk Monitoring
_______ risk means lowering the chance that the event will occur by following some of the risk control actions below:
• Using multiple contractors;
• Conducting multiple tests;
• Reusing proven software versus developing new software;
• Parallel design and development of key sub-systems and components; and
• Incremental development
Controlling
The difference between the process technique and this approach is simple: The process technique addresses the contractor’s engineering and manufacturing processes while the _______ technique focuses on the resulting product.
Product (WBS) Risk Assessment
In a ______ risk management approach, a dedicated group conducts risk management efforts.
Centralized
In a _______ risk management approach, assigned personnel conduct risk management as part of their normal engineering or management jobs within the acquisition team.
Decentralized
