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Managing Supply Chain Risk L5M2 Paper *11.
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1.
Which of the following provides the most accurate definition of risk?
2.
Which of the following pose potential risks to a supply chain's stability?
1. Probability of lost sales due to geopolitical threats
2. Transporting chemical containers to the buyer’s warehouse
3. Unsafe warehouse practices
4. Loss of stock due to poor security measures
3.
Is it correct that an organization should always assess its risk appetite level before making risk-related decisions?
4.
Is it correct that procurement managers should always eliminate risks in their departments to ensure profitable trading?
5.
Following a fire at its depot, a transport company can replace its fleet through insurance, but in the meantime, it loses business due to unfulfilled orders. What type of loss does this represent?
6.
Which two examples listed are classified as direct loss?
7.
Which characteristics listed are typical of an indirect loss?
1. Indirect loss cannot be easily quantified
2. Indirect loss can be easily documented
3. Indirect loss is difficult to insure against
4. Indirect loss requires a lot of money to insure
8.
From the options below, which one is an example of an internal supply chain risk?
9.
Select the three scenarios that illustrate fraud occurring in a supply chain.
10.
Is the statement correct that procurement managers are essential in combating fraud within the supply chain?
11.
What are the possible technology risks that a procurement organization might face?
1. Under-investment
2. Cyber-crime
3. Ransomware attack
4. Cargo theft
12.
From the list below, select the two factors that are prerequisites for fraud in the supply chain.
13.
With an international sourcing strategy for manufacturing inputs, what factors are CBEF Manufacturers likely to face when acquiring these resources?
1. Language and cultural difference
2. Quality issues
3. Higher input prices
4. Exchange rate risk
14.
As a global manufacturing company with an interconnected supply chain, ManCo Inc. has high levels of data availability and transparency. What technological risk might arise from this approach, as highlighted by the CPO?
15.
What are the steps that a procurement manager can adopt to protect against currency risks?
1. A buyer can the request to use its own currency
2. Insuring the goods that have to be transported
3. Using a forward exchange contract
4. Avoid fixing the rate of currency
16.
What is the primary focus of the Sarbanes-Oxley regulations?
1. Investor protection
2. Corporate financial disclosure
3. Clear commercial advertising
4. Product quality
17.
When a supplier becomes insolvent, contract performance is at risk. What are THREE frequent causes of supplier insolvency?
18.
To determine a supplier’s financial stability, which of the following ratios measure its capacity to settle short-term debts with current assets?
1. Profitability ratios
2. Acid test ratio
3. Gearing ratio
4. Current ratio
19.
Should employees in the supply chain be encouraged to report unethical behavior if they suspect wrongdoing?
20.
Which of the following aspects of an organization are most impacted by brand-related risks?
21.
Among the following, which is classified as a sustainable procurement standard?
22.
Should a force majeure clause always be included in a service contract with a supplier?
23.
To safeguard against defective supplies, which clause should be included in a contract?
24.
Do model form contracts gain popularity because they offer enhanced protections for suppliers?
25.
What are the various types of intellectual property protections among the following?
1. Copyright
2. Indemnity
3. Insurance
4. Trademark
26.
Does the occurrence of unforeseen events in a contract result in a 'force majeure' situation, where no party is held liable?
27.
Which contractual clause would apply if a hurricane halted a factory’s ability to manufacture and deliver goods?
28.
Which of these is NOT considered an advantage of using a standard contract template?
29.
To ensure best practices in audits, which TWO methods should be followed?
30.
Given that the procurement organization heavily relies on an outsourced supplier for a high-risk, medium-value contract, is it appropriate for the procurement manager to request a disaster recovery plan?
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