L5M2 Exam Training Practice Tests (CIPS Managing Supply Chain Risk)]

Question 1

A black swan event is what type of occurrence?

A. an occurrence with a negative outcome B. an occurrence with a good outcome C. an unusual occurrence D. a common occurrence

Correct Answer: C

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Question 2

Which of the following are benefits of ISO28000? Select TWO.

A. decreased legal costs B. increased market share C. competitive advantage D. cost saving

Correct Answer: C,D

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Question 3

When would a company use the Stakeholder Salience Model?

A. to engage stakeholders in the development of risk assessments B. to show stakeholders how the company will mitigate risks C. to inform stakeholders of potential risks D. as part of a disaster recovery plan

Correct Answer: A

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Question 4

Which of the following risks would likely be tolerated by a company?

A. opportunities which are low risk and low impact B. opportunities which are low risk and high impact C. opportunities which are high risk and low impact D. no risks should be tolerated

Correct Answer: A

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Question 5

Logistics Risks are caused by...

A. customer expectations B. economic instability C. extended supply chains D. heightened ethical standards

Correct Answer: C

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Question 6

Which of the following will you put into box 2?

A. strategic B. intellectual property
(Correct) C. operational D. environment

Correct Answer: B

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Question 7

Leo LLP is a company which sources materials internationally, and then sells these on nationally at a small margin. Leo LLP has noted that there is a risk of exchange rate fluctuations making their purchases unviable.
The CFO has declared that the only way to mitigate this risk is via hedging and that they should look at price fixing. is this correct?

A. no- Leo LLP can take out insurance to mitigate this risk B. yes- hedging is the only solution to mitigate the risk of adverse price movements C. yes- this reduces the risk to 0 D. no- Leo LLP could do nothing and increase its prices instead

Correct Answer: D

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Question 8

Which of the following is an example of hedging?

A. audits B. dual-sourcing C. risk assessments D. insurance

Correct Answer: D

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CIPS Managing Supply Chain Risk - L5M2 Exam Practice Test