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CIPS Managing Supply Chain Risk Sample Questions (Q23-Q28):NEW QUESTION # 23
In an organisation, who is responsible for creating a risk assessment register?
Answer: A
Explanation:
Explanation
A Cross Functional Team should create a risk register. It shouldn't be the responsibility of one person to do this- more points of view will lead to more risks being identified. Accountability for the Risk Register may however sit with the CEO or a Department Manager. This is explained on p. 132
NEW QUESTION # 24
Dave is a procurement manager for a chocolate factory who is running a tender to source cocoa from a new supplier. The tender is a huge opportunity for suppliers and the contract would be worth millions of pounds.
Dave has passed some information about the tender to one of the bidders in exchange for a free holiday to Barbados. Which of the following types of fraud has Dave committed?
Answer: C
Explanation:
Explanation
This is an example of bribery. The trip to Barbados is the bribe. For more information on these types of fraud see p.19
NEW QUESTION # 25
Which of the following is a component of the Sarbanes-Oxley Regulations?
Answer: B
Explanation:
Explanation
Separation of duties is a key component of the Sarbanes-Oxley Regulations. It ensures businesses are accounting responsibly, and one way to do this is through separation of duties (no one person has complete control of the accounts of a company). See https://www.investopedia.com/terms/s/sarbanesoxleyact.asp and p.42 in the study guide. This piece of legislation does tend to come up in the exam so do revise this topic.
NEW QUESTION # 26
Which of the following risks would likely be tolerated by a company?
Answer: C
Explanation:
Explanation
Low risk and low impact should be tolerated. This is from the Probability and Impact Matric from p.122. The other two options should be either transferred or treated.
NEW QUESTION # 27
Fudgylicious Inc is a manufacturer of confectionary based in the United Kingdom. In one of its factories an employee has an accident during his shift which resulted in him breaking a leg and requiring surgery. Will the employer's Professional Indemnity insurance cover the cost of the operation?
Answer: A
Explanation:
Explanation
The correct answer is 'no-this is not the purpose of insurance'. The question asks if Professional Indemnity Insurance can be claimed on for this- no it can't- that's not its purpose. It would be Employer's Liability insurance which could be claimed on. This question tests your understanding of the different types of insurance. There is a very similar question in the exam- so remember accidents at work are claimed against Employer's Liability insurance NOT Professional Indemnity insurance - see p.96 for more information on different types of insurance
NEW QUESTION # 28
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