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CIPS L5M2 Exam covers essential topics such as supply chain risk management frameworks and models, the identification and evaluation of risks, developing effective risk mitigation strategies, and crisis management. It also covers legal and regulatory requirements related to supply chain risk management, procurement policies, and contract management.
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CIPS Managing Supply Chain Risk Sample Questions (Q40-Q45):NEW QUESTION # 40
Neruda Incorporated is evaluating potential suppliers' financial standings as part of a tender. Which of the following companies is the most financially stable?
Answer: A
Explanation:
Explanation
Company D is the strongest. You want a company with high liquidity (this means they can easily pay any debts) and low gearing (meaning that their company isn't financed by debt). This question comes from p.24 of the CIPS study guide. It doesn't go into a lot of detail on financial ratios and gearing, as this was covered in Level 4. If you're rusty on financial ratios and gearing I recommend revising these before the exam.
NEW QUESTION # 41
Which of the following will you put into box 5?
Answer: D
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
CSR= Corporate Social Responsibility
NEW QUESTION # 42
According to Kid Sadgrove, fraud can take place when four pre-conditions exist. Which of the following is not one of those pre-conditions?
Answer: C
Explanation:
Explanation
access is not a pre-condition. The other three are. The fourth pre-condition not mentioned is lack of controls.
This is from p.20 of the study guide
NEW QUESTION # 43
Logistics Risks are caused by...
Answer: B
Explanation:
Explanation
Extended supply chains create logistic risks. This is from p. 29. Types of risks is a popular exam topic but the questions are usually quite straightforward like this.
NEW QUESTION # 44
Robot Ltd manufactures high end robots. A lot of value is tied up in the stock that it holds within its warehouse as each robot is worth several thousand pounds. The company has decided to enlist the services of a third party provider for disaster recovery, to help them shape a plan for if something were to happen to the stock, such as a flood. Is this the correct thing for Robot Ltd to do?
Answer: C
Explanation:
Explanation
The correct answer is 1 - the 3rd party can provide broader experience and expertise. They can advise on best practice and will know how to advise Robot Ltd as they will have experience across a wide range of companies. This is explained on p.91 of the study guide
NEW QUESTION # 45
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