Free L5M2 Exam Questions - Easiest Way for Success

Prepare for the CIPS L5M2 exam questions with our authentic preparation materials, including free L5M2 practice exam questions and answers. TheExamsLab provides all the support you need to succeed in the CORE Level 5 Managing Supply Chain Risk L5M2 exam. This dedication to student success is why we have the most satisfied L5M2 certification exam candidates worldwide.

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Total 122 Questions | Updated On: Sep 14, 2024

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Question 1

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 : yes- hedging is the only solution to mitigate the risk of adverse price movements

B : yes- this reduces the risk to 0

C : no- Leo LLP could do nothing and increase its prices instead

D : no- Leo LLP can take out insurance to mitigate this risk

Answer: C

Question 2

An indemnity clause should contain which of the following pieces of information 1) duties of both parties 2) a monetary limit 3) insurance levels 4) details of the breach 5) a time limit

A : 1,2,5

B : 1,3,4

C : 2,4,5

D : 3,4,5

Answer: A

Question 3

Which of the following models would be used to explore internal and external risks to a business?

A : Porter's 5 Forces

B : STEEPLE

C : SWOT

D : Poisson Distribution

Answer: C

Question 4

ISO 20400 represents what area of business?

A : Quality Management

B : Supply Chain Security

C : Risk Management

D : Sustainable Procurement

Answer: D

Question 5

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?

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

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

C : 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

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

Answer: A

Page: 1 / 25

Total 122 Questions | Updated On: Sep 14, 2024

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