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Managing Supply Chain Risk L5M2 Paper *10.
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1.
Which of the following represent key principles in the field of insurance?
1. Non-disclosure
2. Utmost good faith
3. Insurable interest
4. Indemnity protection
2.
Can conducting a risk assessment help minimize supply chain risk? Is this statement accurate?
3.
Which of the following approaches are acknowledged as effective risk management strategies? Select TWO that apply.
4.
When developing a disaster recovery plan for IT in a large organization, which of the following are critical considerations? Select THREE that apply.
5.
Under which circumstances would a supplier’s product liability insurance usually provide protection? Select THREE that apply.
6.
MMIG, a prominent global manufacturing company known for its high-quality products and strong brand reputation, has recently experienced several internal risk issues. Considering these events, which of the following are currently causing concern for the MMIG board?
1. Increasing interest costs
2. Customer demanding different products
3. The loss of key personnel
4. Systems unreliability
7.
The International Banking Group (IBG), much like other financial services institutions, has been navigating a challenging environment. With rising competition putting pressure on revenues, shareholders are now urging IBG to adopt cost-saving strategies to protect profitability and ensure consistent dividend payouts. One such strategy identified by the board involves outsourcing various back-office processing and customer support functions that are presently handled by IBG’s own staff. Which of the following are the primary risks that IBG might encounter as a direct result of implementing this outsourcing measure?
1. Loss of in-house expertise
2. Loss of brand value
3. Loss of direct control
4. Loss of product differentiation
8.
The board of Value Goods Retail (VGR) is focused on mitigating supply chain risks, especially following past issues with child labour in its operations. To ensure its commitment to ethical practices, VGR has decided to hire specialist suppliers to conduct audits of its supply chain. Given this, which of the following criteria is VGR most likely to consider when selecting the best audit supplier?
1. Access to technology
2. Local knowledge
3. Capital base
4. Independence
9.
A buyer and supplier are finalizing the terms of their agreement, and both parties have specific concerns. The buyer is focused on protecting against potential copyright claims related to the software code, especially the risk of being sued after rolling it out. Meanwhile, the supplier, based overseas, is concerned about unforeseen events that could prevent fulfilling the contract. Which of the following clauses are most likely to be included in the agreement to address these concerns?
1. Indemnity clause
2. Assignment clause
3. Force majeure clause
4. Time is of the essence clause
10.
Cheesy Pizza Co., which manufactures frozen pizzas sold in various supermarkets, works with multiple suppliers. However, with one cheese supplier, there is no formal contract outlining the agreed terms of business. Instead, purchase orders are issued as needed. Cheesy Pizza Co. includes its standard terms and conditions on the back of the purchase order, which is sent to the supplier. In return, the cheese supplier acknowledges the order by sending its own terms and conditions, which differ significantly from those of Cheesy Pizza. What element of operational risk does this situation represent?
11.
The Red Tomato Company has been dealing with issues related to exchange rates that are affecting its exports to international markets. According to the STEEPLED framework, which external factor does this issue represent?
12.
How can ISO 28000:2007 help an organization manage and improve its supply chain?
1. Ability to disregard applicable legislative and regulatory codes of operation
2. Establish implement, maintain and improve a security management system
3. Assure conformance and stated security management policy
4. Have a third party determine and declare conformance of quality assurance standards
13.
What are the primary factors that drive an organization's risk appetite?
1. Amount of risk
2. Type of risk
3. Proximity of risk
4. Term of risk
14.
Is it correct that a force majeure clause in a contract typically specifies a clear level of indemnity?
15.
Is it correct that non-disclosure agreements are valuable when new intellectual property rights (IPR) are at the concept stage of development?
16.
Which three of the following are most likely to be included in a risk register?
17.
The Major Central Government (MCG) department manages a variety of large contracts involving complex supplier networks, many of which include international partners. The newly appointed Chief Marketing Officer (CMO) has already conducted a review to assess MCG's highest-value and most high-risk contracts and is now concerned about potential vulnerabilities that could expose the department to risk. Currently, there is no proactive approach to managing these contracts. What action should the CMO of MCG take as a top priority to address this concern?
1. Supplier categorization
2. Supply chain mapping
3. Key supplier audits
4. Supplier rationalisation
18.
Company X collaborates with a variety of subcontractors to support its operations. During the onboarding process, Company X asks subcontractors to provide a completed insurance broker form. What is the reason behind Company X requesting details about the subcontractor’s product liability insurance?
19.
Company Z, a major facilities management firm, is handling an increasing number of projects, many of which have introduced considerable risks. The management team has decided to explore potential strategies to address and reduce these risks. Which of the following strategies would be most beneficial for Company Z in mitigating these risks?
20.
Company X relies on numerous subcontractors to carry out its operations. As part of its engagement process, the company requires subcontractors to submit a completed insurance broker form. What is the reason for Company X requesting details about the subcontractor’s employer’s liability insurance?
21.
Which three of the following are essential elements of a Business Continuity Plan (BCP)?
22.
Which of the following statements correctly reflect the principles of ISO 31000:2018?
1. ISO 31000:2018 provides a common approach to managing risk and can be applied in a range of industries
2. ISO 31000:2018 provides an approach to managing any type of risk and is specific to the telecoms and IT industry
3. ISO 31000:2018 can be used throughout the life of the organisation and can be applied to any activity, including decision making at all levels
4. ISO 31000:2018 is time sensitive, requiring renewal every 2-5years, however can be applied to any activity, including decision-making at all levels
23.
Is it correct that the procurement and supply chain manager is typically responsible for creating and overseeing the supply chain risk register?
24.
Which of the following practices suggest inadequate governance in procurement, especially in mitigating fraud and corruption?
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