CIPS L5M2 Managing Supply Chain Risk Exam Exam Practice Test Questions

• Question 1

  Which of the following statements about FIDIC Contracts are true? Select TWO:

  • They are used in the construction industry
  • They are more collaborative than NEC contracts
  • Each party manages their own risks separately
  • Early warning notices are given when risks arise
  • Change control is called a 'Compensation Event'

  Show Answer Answer: A, C Next

• Question 2

  In an organisation, who is responsible for creating a risk assessment register?

  • The CEO
  • Procurement Manager
  • Risk Manager / H+S Manager
  • Cross-Functional Team

  Show Answer Answer: D Next

• Question 3

  Zara is a procurement manager who is thinking about working with a new supplier to source buttons for her clothes manufacturing business. Her manager has asked her to do some due diligence on the supplier's financial stability. What should she do?

  • Use an outsourced third-party credit rating agency
  • Use an outsources third-party risk management consultant
  • Conduct a credit check on the supplier based on the information provided by them in the tender
  • Conduct a risk assessment based on the information provided by the supplier in the tender

  Show Answer Answer: A Next

• Question 4

  Which of the following is not a benefit of having a contingency plan?

  • Competitive advantage
  • Increased staff morale
  • Greater resilience to force majeure events
  • Increased profits

  Show Answer Answer: D Next

• Question 5

  ISO 20400 represents what area of business?

  • Quality Management
  • Supply Chain Security
  • Risk Management
  • Sustainable Procurement

  Show Answer Answer: D Next