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The CIPS L5M2 (Managing Supply Chain Risk) Certification Exam is a globally recognized certification for supply chain professionals who want to enhance their knowledge and skills in managing supply chain risks. This certification is designed to equip candidates with the necessary skills to identify, assess, and mitigate risks within the supply chain. It covers the most critical aspects of supply chain risk management, including risk identification, assessment, mitigation, and monitoring. Candidates who successfully pass the exam will have a deep understanding of the importance of risk management in the supply chain and be able to apply best practices to their organization.

CIPS Managing Supply Chain Risk Sample Questions (Q38-Q43):

NEW QUESTION # 38
Which of the following models would be used to explore internal and external risks to a business?

A. STEEPLE
B. SWOT
C. Poisson Distribution
D. Porter's 5 Forces

Answer: B

Explanation:
Explanation
SWOT is used for this. S + W is strengths and weaknesses, which are internal risks. O+T are opportunities and threats which are external risks. See p. 12 for more information

NEW QUESTION # 39
John is a mid-level manager and has created a risk / reward matrix about four potential opportunities at his company White Ducky Limited. He will present his research to a board meeting next week. He has categorised the four opportunities as the following. Which of these opportunities should John recommend the board
'consider'? Select TWO.

A. low risk/ low reward
B. high risk/ high reward
C. high risk/ low reward
D. low risk / high reward

Answer: A,B

Explanation:
Explanation
High risk/ high reward, and low risk/ low reward are the options that should be CONSIDERED. This is according to the risk/ reward matrix on p. 6. Items that are low risk/ high reward should be PROGRESSED and items which are high risk / low reward should be AVOIDED.

NEW QUESTION # 40
What is ISO28000?

A. Risk Management
B. Sustainable Procurement
C. Supply Chain Security
D. Quality Management

Answer: C

Explanation:
Explanation
ISO 28000 is Supply Chain Security Management. This is a known topic for the exam. Learn more about ISOs on p. 141

NEW QUESTION # 41
Which of the following will you put into box 8?

A. NDA
B. Conformance Specification
C. Force Majeure
D. service credits

Answer: D

Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated

Service Credits are commonly used in IT contracts. This is where the customer is compensated financially should the system 'go down' for a period.

NEW QUESTION # 42
Which of the following stages would come first within a risk assessment?

A. monitor risk
B. treat risk
C. evaluate risk
D. analyse risk

Answer: D

Explanation:
Explanation
analyse is the correct answer. The full process is: establish context- identify- analyse - evaluate - treat - monitor and review. This is from p.122

NEW QUESTION # 43
......

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