Latest CIPS L5M2 Exam questions and answers [Q58-Q76]

NEW QUESTION 58
What is the purpose of an indemnity clause within a contract?

to assign risk to each party

to ensure both parties are adequately insured if something were to go wrong

to transfer risk from one party to another

to explain what would happen in the case of a force majeure

NEW QUESTION 59
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

NEW QUESTION 60
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.

1,2 and 3

1,3 and 5

2, 4 and 5

1,2 and 4

NEW QUESTION 61
Portobello is an Italian manufacturing company that produces canned tomato sauces. It imports a lot of its tomatoes from Latin America as there isn’t the capacity to grow that many tomatoes in Italy. One of the major risks posing Portobello is that the tomatoes must be transported via cargo ship, and there is a risk that the ship may sink, or be delayed by bad weather. Portobello has taken out insurance to cover the cost of the tomatoes should this happen. What technique has Portobello used?

tolerate

treat

transfer

terminate

NEW QUESTION 62
Which of the following is a method for approaching risks?

tolerate

translate

transport

take out

NEW QUESTION 63
Robot Ltd manufactures high end robots. A lot of value is tied up in the stock that it holds within its warehouse as each robot is worth several thousand pounds. The company has decided to enlist the services of a third party provider for disaster recovery, to help them shape a plan for if something were to happen to the stock, such as a flood. Is this the correct thing for Robot Ltd to do?

yes- a 3rd party can provide broader experience and expertise

yes- a third party is a cheap option for disaster recovery planning

no- Robot Ltd should create a cross-functional team to draw up the plan as internal stakeholders will understand the risks better than a 3rd party

no – a 3rd party can only help in the solution stage of disaster recovery, not the planning stage

NEW QUESTION 64
Which of the following will you put into box 7?

new technology

forward contract

outsource

insurance

NEW QUESTION 65
Kieran works in the manufacturing industry and his company have just implemented LEAN production processes. Will this increase or decrease the risks in relation to security of supply?

increase security of supply risks as this is a tried and tested risk reducing process

increase security of supply risks as there is less buffer stock held on site

decrease security of supply risks as there will be increased efficiencies

decrease security of supply risks as there is less buffer stock

NEW QUESTION 66
Maple Tree Limited is a Canadian company who has recently signed a new contract with a supplier who is based in China. Maple Tree Limited will be buying a raw material with a reputation for severe price fluctuations. Which of the following would help mitigate the risk that this poses? Select TWO options

quote in the supplier’s currency

quote in the buyer’s currency

use a forward exchange contract

fix the exchange rate at the current rate

NEW QUESTION 67
Which of the following will you put into box 2?

strategic

intellectual property

environment

operational

NEW QUESTION 68
Standard Deviation is the measure of the variation between the values in a range of data. From which of the following could you calculate Standard Deviation?

normal distribution

binomial distribution

poisson distribution

value at risk

NEW QUESTION 69
Which of the following FIDIC Contracts would be suitable for a contract for offshore wind projects?

Construction Contract

Measured Term Contract

Minor Works Contract

Yellow Book Contract

NEW QUESTION 70
What is ISO28000?

Risk Management

Supply Chain Security

Quality Management

Sustainable Procurement

NEW QUESTION 71
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

NEW QUESTION 72
Which of the following will you put into box 8?

service credits

NDA

Conformance Specification

Force Majeure

NEW QUESTION 73
Company X is a large company which is traded on the UK stock exchange. According to the Companies (Miscellaneous Reporting) Regulations 2018- is it obligatory for Company X to follow a Corporate Governance Code?

yes- all companies in the UK must follow this

yes- all companies trading on the stock exchange must do this

no- corporate governance codes are not mandatory

no- but if it doesn’t follow a Corporate Governance Code it must explain the reasons why not

NEW QUESTION 74
Which of the following will you put into box 7?

audit

monitor

insurance

dual sourcing

NEW QUESTION 75
Which of the following will you put into box 6?

audit

monitor

insurance

dual sourcing

NEW QUESTION 76
Which of the following is a component of the Sarbanes-Oxley Regulations?

separation of duties

ethical business practices

elimination of bribery

environmental protection

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Latest CIPS L5M2 Exam questions and answers [Q58-Q76]

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