Risk Procurement Quiz

Risk Procurement Quiz: Correct Answers and Explanation

Risk Procurement is a popular topic in the procurement world. It is a somewhat new topic and not many companies have adopted it fully. The idea is to risk procure a supplier before you commit to a long term contract. When you risk procure a supplier, you can terminate the contract anytime after a set trial period. Risk Procurement is also known as RFP (Request for proposal), RFQ (Request for quotation) and RFM (Request for master agreement). This blog covers the correct answers and the explanations for the different questions.

So, let’s get started with some risk procurement quiz questions and their answers.

Q1. Procurement risks include which of the following?

a. Long reduction and lead times
b. Increased cost due to short supply
c. Inability to purchase a product because it doesn’t exist
d. All of the above

Q2. Like a project charter, a Statement of Work details the scope and high level requirements of what the project will do.

a. True
b. False

Q3. When planning a procurement, it is useful to …

a. Consult with in-house experts in procurement, Hr and legal
b. Conduct a make or buy analysis
c. Insure the project sponsor signs off on the procurement plan
d. All of the above

Q4. A decision to procure external expertise, instead of building something in-house, can …

a. Provide the context for planning the project
b. Result in project delays working with the organization’s budget and finance office
c. Enable the use of an agile methodology
d. Alienate in-house staff who could have worked on the project

Q5. It is a best practice to re-use your organization’s previous procurement plans and tools.

a. True
b. False

Answers

  1. d
  2. a
  3. d
  4. a
  5. a

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