- A
Avoid the risk by choosing a different raw material, and accept the risk by setting aside contingency reserves.
Why wrong: Avoiding may not be feasible without significant scope change.
- B
Mitigate the risk by stockpiling raw materials, and avoid the risk by cancelling the project.
Why wrong: Cancelling is extreme and not necessary.
- C
Transfer the risk by signing a contingency contract with an alternative supplier, and mitigate the risk by monitoring the supplier's financial health.
Contingency contract transfers the impact, monitoring reduces probability.
- D
Accept the risk by using management reserves, and ignore mitigation efforts.
Why wrong: Proactive responses are expected for high-impact risks.
CAPM Predictive Plan-Based Methodologies Practice Question
This CAPM practice question tests your understanding of predictive plan-based methodologies. Compare every option against the stated constraints before choosing — the best answer satisfies all requirements, not just the most obvious one. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A manufacturing project using predictive plan-based methodology is underway. The project manager identifies a risk that a key raw material supplier may go bankrupt, which would halt production for at least two weeks. The probability is assessed as 30% with a high impact. The project manager plans to hold a risk response planning meeting with the team. One team member suggests identifying an alternative supplier and signing a contingency contract. Another recommends self-insuring by setting aside budget reserves. The project sponsor wants to reduce the probability by investing in supplier financial health monitoring. Which combination of risk responses is MOST appropriate for this risk?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"least"Why it matters: You want the option with minimum overhead, fewest steps, or lowest impact — not the most feature-rich or comprehensive answer.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Transfer the risk by signing a contingency contract with an alternative supplier, and mitigate the risk by monitoring the supplier's financial health.
For a high-impact risk with moderate probability, transferring (e.g., contingency contract) and mitigating (e.g., financial monitoring) are appropriate. Option B combines these. Option A uses avoid (not possible) and accept. Option C only accepts. Option D mitigates and avoids (not feasible).
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Avoid the risk by choosing a different raw material, and accept the risk by setting aside contingency reserves.
Why it's wrong here
Avoiding may not be feasible without significant scope change.
- ✗
Mitigate the risk by stockpiling raw materials, and avoid the risk by cancelling the project.
Why it's wrong here
Cancelling is extreme and not necessary.
- ✓
Transfer the risk by signing a contingency contract with an alternative supplier, and mitigate the risk by monitoring the supplier's financial health.
Why this is correct
Contingency contract transfers the impact, monitoring reduces probability.
Clue confirmation
The clue word "least" in the question point toward this answer.
Related concept
Static NAT maps one inside address to one outside address.
- ✗
Accept the risk by using management reserves, and ignore mitigation efforts.
Why it's wrong here
Proactive responses are expected for high-impact risks.
Common exam traps
Common exam trap: NAT rules depend on direction and matching traffic
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
How to think about this question
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
KKey Concepts to Remember
- Static NAT maps one inside address to one outside address.
- PAT allows many inside hosts to share one public address using ports.
- Inside local and inside global describe the private and translated addresses.
- NAT ACLs identify traffic for translation, not always security filtering.
TExam Day Tips
- Identify inside and outside interfaces first.
- Check whether the scenario needs static NAT, dynamic NAT or PAT.
- Do not confuse NAT matching ACLs with normal packet-filtering intent.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Real-world example
How this comes up in practice
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
What to study next
Got this wrong? Here's your next step.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related CAPM NAT questions on configuration and troubleshooting.
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Predictive Plan-Based Methodologies — study guide chapter
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FAQ
Questions learners often ask
What does this CAPM question test?
Predictive Plan-Based Methodologies — This question tests Predictive Plan-Based Methodologies — Static NAT maps one inside address to one outside address..
What is the correct answer to this question?
The correct answer is: Transfer the risk by signing a contingency contract with an alternative supplier, and mitigate the risk by monitoring the supplier's financial health. — For a high-impact risk with moderate probability, transferring (e.g., contingency contract) and mitigating (e.g., financial monitoring) are appropriate. Option B combines these. Option A uses avoid (not possible) and accept. Option C only accepts. Option D mitigates and avoids (not feasible).
What should I do if I get this CAPM question wrong?
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related CAPM NAT questions on configuration and troubleshooting.
Are there clue words in this question I should notice?
Yes — watch for: "least". You want the option with minimum overhead, fewest steps, or lowest impact — not the most feature-rich or comprehensive answer.
What is the key concept behind this question?
Static NAT maps one inside address to one outside address.
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Last reviewed: Jun 24, 2026
This CAPM practice question is part of Courseiva's free PMI certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CAPM exam.
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