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To prepare for the CIPS L5M2 exam, candidates can enroll in training courses, read study materials, and participate in online forums and discussions. It is also recommended that candidates gain practical experience in managing supply chain risks through their work experience or by volunteering for projects. By passing the CIPS L5M2 exam, candidates can demonstrate their expertise in managing supply chain risks and enhance their career prospects in procurement and supply chain management.

CIPS Managing Supply Chain Risk Sample Questions (Q12-Q17):

NEW QUESTION # 12
Which organisation created the Decent Work Agenda?

A. ILO
B. ISO
C. UN
D. ETI

Answer: A

Explanation:
Explanation
This is from ILO- the International Labour Organisation - see p.49 of the textbook. You should recognise all four of these acronyms as they come up in this module UN= United Nations - they have the Guiding Principles, ISO = produce standards for business practices and ETI = Ethical Trading Initiative - they have a base code for labour practices.

NEW QUESTION # 13
Which of the following will you put into box 6?

A. new technology
B. outsource
C. forward contract
D. insurance

Answer: D

Explanation:
Explanation
Table Description automatically generated

The company should ensure they have the correct levels of Employer's Liability insurance as staff are getting injured. This transfers the risk to the insurance company. (I mean they should probably do something to stop the staff getting hurt too... but this is just an imaginary example question....)

NEW QUESTION # 14
The triple bottom line is a way to refer to sustainability practices. Which of the following is included within the Triple Bottom Line? 1. People, 2. Profit, 3. Price, 4. Planet 5. Power.

A. 2, 4 and 5
B. 1,3 and 5
C. 1,2 and 3
D. 1,2 and 4

Answer: D

Explanation:
Explanation
Triple Bottom Line - people, profit and planet - options 1, 2 and 4. See p.45 for more details on sustainability

NEW QUESTION # 15
Which of the following statements is true about a Disaster Recovery Plan? Select TWO

A. it can be structured using a standardised framework
B. it is held at the top level
C. it contains more detail than a business continuity plan
D. the focus is to return a company to making a profit after a disaster

Answer: A,C

Explanation:
Explanation
Answers 2 and 4 are correct. A Business Continuity Plan is held at the top level, not a disaster recovery plan.
This can be held at the department level- or whoever would have the ability to enact this if a disaster were to happen. A company is likely to have several Disaster Recovery Plans for different departments and different scenarios so several people within the organisation may be accountable for these. Option 3 is incorrect as the focus is on recovering systems (e.g. getting people back online) not on profit. P.155

NEW QUESTION # 16
What is the job of an underwriter?

A. to evaluate insurance applications
B. to advise required insurance levels for a contract
C. to determine the validity of an insurance claim
D. to assist a buyer in selecting the correct insurance

Answer: A

Explanation:
Explanation
An underwriter evaluates insurance applications. Learn the difference between Insurance Underwriters and Claims Adjusters for the exam - this is a known topic. (A claims adjuster determines the validity of an insurance claim).

NEW QUESTION # 17
......

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