Spring Special Limited Time 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code = getmirror

Home
CIPS
CIPS Level 5 Advanced Diploma in Procurement and Supply
L5M2
Managing Supply Chain Risk Questions and Answers

Pass the CIPS Level 5 Advanced Diploma in Procurement and Supply L5M2 Questions and answers with ExamsMirror

Practice at least 50% of the questions to maximize your chances of passing.

Exam L5M2 Premium Access

View all detail and faqs for the L5M2 exam

Go to Exam

705 Students Passed

92% Average Score

98% Same Questions

Viewing page 2 out of 4 pages

Viewing questions 11-20 out of questions

Questions # 11:

Which of the following is not a benefit of having a contingency plan?

Options:

competitive advantage

increased staff morale

greater resilience to force majeure events

increased profits

Answer

Explanation

Contingency plans won't increase your profit, but they will do the other three things. This is from p.109-110 of the study guide

Questions # 12:

Which of the following is a component of the Sarbanes-Oxley Regulations?

Options:

separation of duties

ethical business practices

elimination of bribery

environmental protection

Answer

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.

Questions # 13:

Which of the following will you put into box 2?

Options:

strategic

intellectual property

environment

operational

Answer

Explanation

The correct answers are as follows:

Table Description automatically generated

Questions # 14:

The triple bottom line is a way to refer to sustainability practices. Which of the following is included within the Triple Bottom Line? 1. People, 2. Profit, 3. Price, 4. Planet 5. Power.

Options:

1,2 and 3

1,3 and 5

2, 4 and 5

1,2 and 4

Answer

Explanation

Triple Bottom Line - people, profit and planet - options 1, 2 and 4. See p.45 for more details on sustainability

Questions # 15:

Oliver is a procurement manager and he is trying to work out the likelihood that a supplier fails to deliver to the warehouse two days in a row. Which of the following methodologies should Oliver use?

Options:

value at risk

normal distribution

binomial distribution

Poisson Distribution

Answer

Explanation

Poisson Distribution would be used for this. Poisson Distribution predicts the likelihood of an event occurring. This is explained on p. 129 of the study guide but this YouTube video explains it a lot better: https://www.youtube.com/watch?v=zA7fp2s7FlM

Questions # 16:

Controlling a risk through the development of actions that can minimise the impact the organisation will suffer as a result of the risk event is known as what control?

Options:

tolerate

treat

transfer

terminate

Answer

Explanation

This is the description of treat mentioned on p. 143. The 4 Ts is a popular exam topic

Questions # 17:

Which of the following will you put into box 5?

Options:

CSR Policy

Quote in Buyer's Currency

Force Majeure

Standardise Payment Terms

Answer

Explanation

The correct answers are as follows:

Table Description automatically generated

Standardised payment terms would help with cashflow. For example every client must pay within 30 days.

Questions # 18:

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?

Options:

yes- a 3rd party can provide broader experience and expertise

yes- a third party is a cheap option for disaster recovery planning

no- Robot Ltd should create a cross-functional team to draw up the plan as internal stakeholders will understand the risks better than a 3rd party

no - a 3rd party can only help in the solution stage of disaster recovery, not the planning stage

Answer

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

Questions # 19:

What is the final stage of Deming's Plan - Do - Check cycle which is encouraged by ISO9001?

Options:

Improve

Review

Act

Assess

Answer

Explanation

Act is the final stage. See p.25 for a diagram of the cycle.

Questions # 20:

Which of the following insurances would provide cover in the eventuality that your supplier's place of business flooded and this affected your deliveries?

Options:

business interruption insurance

contingent business interruption insurance

public liability insurance

property insurance

Answer

Explanation

This is 'contingent business interruption' insurance. This protects you if anything were to happen to your suppliers' premises. Business Interruption Insurance would cover you if something were to happen to your premises. See p.99

Viewing page 2 out of 4 pages

Viewing questions 11-20 out of questions