[May-2023] Updated CIPS Level 5 Advanced Diploma in Procurement and Supply L5M2 Exam Questions BUNDLE PACK
Master The CIPS Content L5M2 EXAM DUMPS WITH GUARANTEED SUCCESS!
NEW QUESTION 70
Which of the following is an International Standard for Risk Management?
- A. ISO 27000
- B. ISO 22301
- C. ISO31000
- D. ISO28000
Answer: C
Explanation:
Explanation
Risk Management = ISO31000. Learn the ISOs for the exam as it's a popular exam topic. 31000 is explained on p. 140. As well as the numbers, you should also learn the guiding principles of each ISO for the exam.
NEW QUESTION 71
In which of the following industries is it common to find dedicated resource for risk management?
- A. banking and insurance
- B. agriculture
- C. manufacturing
- D. the public sector
Answer: A
Explanation:
Explanation
Banking and Insurance industries usually have a dedicated resource. This mean people working within the company are dedicated to this role (as opposed to using a third party).
P. 146
NEW QUESTION 72
Which of the following will you put into box 1?
- A. tolerate
- B. transfer
- C. terminate
- D. treat
Answer: B
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
Nothing can be done to change this risk (you can't stop an earthquake from happening), so you therefore need to transfer the risk to another party, or include for this within a contract.
NEW QUESTION 73
Which of the following will you put into box 8?
- A. Conformance Specification
- B. service credits
- C. Force Majeure
- D. NDA
Answer: B
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
Service Credits are commonly used in IT contracts. This is where the customer is compensated financially should the system 'go down' for a period.
NEW QUESTION 74
Which of the following will you put into box 1?
- A. operational
- B. strategic
- C. environment
- D. intellectual property
(Correct)
Answer: D
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
NEW QUESTION 75
Which of the following risks would likely be tolerated by a company?
- A. no risks should be tolerated
- B. opportunities which are high risk and low impact
- C. opportunities which are low risk and high impact
- D. opportunities which are low risk and low impact
Answer: D
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 76
The legal principle of insurable interest means which of the following statements are TRUE? Select TWO.
- A. it is possible to insure someone else's factory
- B. it is not possible to insure your supplier's factory
- C. it is not possible to insure someone else's factory
- D. it is possible to insure your supplier's factory
Answer: C,D
Explanation:
Explanation
Insurable Interest means that it is not possible to insure someone else's factory. The study guide explains that you can only take out insurance where you have at least partial ownership of that risk. Therefore option 3 is also correct as you have a partial risk if something were to happen to your supplier's factory. You can take out CBI insurance for this. see p.100-101 for further explanations of Legal Principles of Insurance
NEW QUESTION 77
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?
- A. yes- the insurance will cover all medical expenses as the accident occurred during his working hours
- B. no- the insurance would not cover the cost of surgery, only for lost wages if he is unable to work
- C. no- this is not the purpose of insurance
- D. yes- the insurance can be used as the accident occurred on the company's premises
Answer: C
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 78
Which of the following are benefits of ISO28000? Select TWO.
- A. decreased legal costs
- B. increased market share
- C. cost saving
- D. competitive advantage
Answer: C,D
Explanation:
Explanation
Advantages of ISO28000 are competitive advantage and cost savings. The textbook explains that cost savings come through a reduction in security incidents. For more info on ISO28000 see p. 141
NEW QUESTION 79
Which of the following models would be used to explore internal and external risks to a business?
- A. STEEPLE
- B. Porter's 5 Forces
- C. Poisson Distribution
- D. SWOT
Answer: D
Explanation:
Explanation
SWOT is used for this. S + W is strengths and weaknesses, which are internal risks. O+T are opportunities and threats which are external risks. See p. 12 for more information
NEW QUESTION 80
Which of the following will you put into box 6?
- A. strategic
- B. environment
- C. operational
- D. intellectual property
Answer: C
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
NEW QUESTION 81
Company X is a large manufacturer of cosmetics and household products. It operates in 57 different countries and has large and complex supply chains. The brand's popularity is partly due to the cheap price of the products compared with its competitors and Company X has recently discovered that child labour has been used within its supply chain. In response to this Company X has donated a large amount of money to charity.
What is this an example of?
- A. triple bottom line thinking
- B. corporate social responsibility
- C. greenwashing
- D. business continuity planning
Answer: C
Explanation:
Explanation
This is Greenwashing. Greenwashing is the process of using a good deed to cover up unethical responsibility.
See p. 45. In this example Company X has thrown some money at a charity in order to cover up the fact it has child labour issues within the supply chain. See https://en.wikipedia.org/wiki/Greenwashing
NEW QUESTION 82
Which of these is a type of Intellectual Property protection? Select TWO
- A. Warranty
- B. Trademark
- C. Condition
- D. Patent
Answer: B,D
Explanation:
Explanation
Patent and Trademark are types of IP protection. There are 4 in total - the other two are copywrite and trade secret. This is covered on p.63-64 of the study guide
NEW QUESTION 83
Chloe is a procurement manager at Ruby Company. She has been asked to join a cross-functional team to review the company's risk appetite, potential risks within the supply chain and brainstorm mitigating actions.
Chloe has suggested that the cross-functional team should first draw up a list of potential supply chain risks and potential strategies to overcome the risks. Is Chloe correct?
- A. no- Chloe should first speak with suppliers before drawing up the list of potential supply chain risks
- B. no- the team should review the company's risk appetite before creating a risk register
- C. yes- the team should focus on creating a risk register and strategies for mitigating risks as quickly as possible
- D. yes- the first thing the team should look at are the risks and categorise these by topic
Answer: B
Explanation:
Explanation
The correct answer is 3 'no- the team should review the company's risk appetite before creating a risk register'.
This questions tests to see if you understand what risk appetite is and when this should be reviewed. Risk appetite is the first stage in developing any plan as it will influence the next stages. For example if the company has a large risk appetite, this would affect how they would classify risks and what mitigating actions they would take. Risk appetite is explained in chapter 1.1 (p.4) but it also comes up in Learning Outcome 3
NEW QUESTION 84
Khalid is a procurement manager who works at a manufacturing organisation based in the UK. The organisation creates building fabric materials by converting raw materials such as steal into useable items in the construction industry. Khalid sources most of his steal internationally due to competitive prices. On one occasion with his usual supplier, the ship that is carrying the materials sinks due to an unexpected storm.
Which clause would be activated within the contract?
- A. liability clause
- B. force majeure
- C. breach of contract
- D. transportation clause
Answer: B
Explanation:
Explanation
this is an example of force majeure. Force majeure is a popular exam topic and comes up in chapter 2.1 p. 66.
A force majeure is when an event, such as a storm, happens which affects the delivery of the contract, but over which neither party has any control.
NEW QUESTION 85
Which of the following will you put into box 2?
- A. operational
- B. strategic
- C. environment
- D. intellectual property
(Correct)
Answer: D
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
NEW QUESTION 86
......
Pass CIPS L5M2 Exam – Experts Are Here To Help You: https://learningtree.actualvce.com/CIPS/L5M2-valid-vce-dumps.html