[2023] Use Valid New Free L5M2 Exam Dumps & Answers
L5M2 Braindumps PDF, CIPS L5M2 Exam Cram
By taking the CIPS L5M2 (Managing Supply Chain Risk) Certification Exam, individuals can gain knowledge of the latest industry trends, best practices, tools, processes, and techniques for effectively managing supply chain risk. Participants will discover how they can use this knowledge to create a competitive advantage for their organizations and make critical decisions that can have a significant impact on their businesses' success.
NEW QUESTION # 55
According to Kid Sadgrove, fraud can take place when four pre-conditions exist. Which of the following is not one of those pre-conditions?
- A. opportunity
- B. motive
- C. access
- D. attractive assets
Answer: C
Explanation:
Explanation
access is not a pre-condition. The other three are. The fourth pre-condition not mentioned is lack of controls.
This is from p.20 of the study guide
NEW QUESTION # 56
Which of the following will you put into box 5?
- A. Standardise Payment Terms
- B. Force Majeure
- C. CSR Policy
- D. Quote in Buyer's Currency
Answer: C
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
CSR= Corporate Social Responsibility
NEW QUESTION # 57
Which of the following is an example of force majeure?
- A. The supplier delivers materials late due to a breakdown
- B. The supplier is under criminal investigation for fraud
- C. The supplier's factory is hit by a hurricane
- D. The supplier asks for an uplift in prices
Answer: C
Explanation:
Explanation
The hurricane is the force majeure event. Natural disasters such as this, or any events outside of the parties' control could be considered force majeure. This is a popular exam topic - see p. 66 in the study guide
NEW QUESTION # 58
Which of the following is an International Standard for Risk Management?
- A. ISO28000
- B. ISO 27000
- C. ISO31000
- D. ISO 22301
Answer: C
Explanation:
Explanation
Risk Management = ISO31000. Learn the ISOs for the exam as it's a popular exam topic. 31000 is explained on p. 140. As well as the numbers, you should also learn the guiding principles of each ISO for the exam.
NEW QUESTION # 59
In an emergency situation, put the following phases into chronological order as to when they would be activated 1) disaster recover plan 2) incident response 3) business continuity plan
- A. 3, 1, 2
- B. 1, 3, 2
- C. 2, 1, 3
- D. 1, 2, 3
Answer: C
Explanation:
Explanation
The correct order is 2, 1, 3 - this is from p.108 of the study guide: 'The Components of a Business Continuity and Disaster Recovery Plan'.
NEW QUESTION # 60
Risk should be a 'golden thread' that links all of the organisation's strategies, communications, policies and training. The LILAC model describes how a risk-aware culture can be created. Which of the following form part of the LILAC model?
- A. Learning and Information
- B. Appraisal and Communication
- C. Leadership and Learning
- D. Investment and Accountability
Answer: C
Explanation:
Explanation
The LILAC Model is; Leadership, Involvement, Learning, Accountability and Communication.
P. 149
NEW QUESTION # 61
Which of the following statements about normal distribution are correct? Select TWO
- A. most of the data points correlate around the beginning
- B. it is the most common type of distribution pattern
- C. it is shaped like a bell curve
- D. it is represented pictorially as a curve
- E. there's a small number of data points required to produce
Answer: B,C
Explanation:
Explanation
1 and 5 are correct- it is the most common type of distribution and it looks like a bell curve when it's drawn as a graph. There's one on p.127 to look at. The other three statements are incorrect- it's a bell shape rather than a curve, it requires a large number of data points and most of the data points correlate around the middle.
NEW QUESTION # 62
Which of these is a type of Intellectual Property protection? Select TWO
- A. Trademark
- B. Warranty
- C. Condition
- D. Patent
Answer: A,D
Explanation:
Explanation
Patent and Trademark are types of IP protection. There are 4 in total - the other two are copywrite and trade secret. This is covered on p.63-64 of the study guide
NEW QUESTION # 63
Which of the following will you put into box 1?
- A. treat
- B. transfer
- C. terminate
- D. tolerate
Answer: B
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
Nothing can be done to change this risk (you can't stop an earthquake from happening), so you therefore need to transfer the risk to another party, or include for this within a contract.
NEW QUESTION # 64
Company X is a large manufacturer of cosmetics and household products. It operates in 57 different countries and has large and complex supply chains. The brand's popularity is partly due to the cheap price of the products compared with its competitors and Company X has recently discovered that child labour has been used within its supply chain. In response to this Company X has donated a large amount of money to charity.
What is this an example of?
- A. greenwashing
- B. triple bottom line thinking
- C. business continuity planning
- D. corporate social responsibility
Answer: A
Explanation:
Explanation
This is Greenwashing. Greenwashing is the process of using a good deed to cover up unethical responsibility.
See p. 45. In this example Company X has thrown some money at a charity in order to cover up the fact it has child labour issues within the supply chain. See https://en.wikipedia.org/wiki/Greenwashing
NEW QUESTION # 65
Which organisation created the Decent Work Agenda?
- A. UN
- B. ILO
- C. ISO
- D. ETI
Answer: B
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 # 66
The CBCI and DBCI are professional qualifications in which area?
- A. supply chain management
- B. environmental improvements
- C. business continuity
- D. ethical business practices
Answer: C
Explanation:
Explanation
These are qualifications in business continuity. This comes from p.107 of the study guide. CBCI stands for Certificate of the Business Continuity Institute and DBCI Diploma of the Business Continuity Institute. Once you know what the acronyms stand for, the question is quite easy!
NEW QUESTION # 67
Oliver is a procurement manager and he is trying to work out the likelihood that a supplier fails to deliver to the warehouse two days in a row. Which of the following methodologies should Oliver use?
- A. binomial distribution
- B. Poisson Distribution
- C. value at risk
- D. normal distribution
Answer: B
Explanation:
Explanation
Poisson Distribution would be used for this. Poisson Distribution predicts the likelihood of an event occurring.
This is explained on p. 129 of the study guide but this YouTube video explains it a lot better:
https://www.youtube.com/watch?v=zA7fp2s7FlM
NEW QUESTION # 68
Which of the following will you put into box 2?
- A. operational
- B. environment
- C. strategic
- D. intellectual property
(Correct)
Answer: D
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated
NEW QUESTION # 69
Which of the following statements are true about risk management? Select TWO.
- A. the goal of risk management is to reduce risks to 0
- B. risk management is the process by which all risks are either treated or transferred
- C. risk management can help companies ensure the smooth and successful running of purchase and supply operations
- D. risk management is an activity that is conducted by a business once a year
- E. risk management is a continuous process
Answer: C,E
Explanation:
Explanation
The correct responses are 2 and 4: risk management is a continual process and helps companies ensure the smooth and successful running of P+S. These are direct quotes from p.3 of the study guide. The other answers are wrong- if risk management is a continuous process it's not something that is done once a year- so this option is automatically discounted. Option 1 is also wrong as you can never reduce all risks to 0, and option 5 is also wrong- risks can be treated and transferred, but they can also be tolerated and terminated.
NEW QUESTION # 70
Which of the following will you put into box 2?
- A. hazard
(Correct) - B. operational
- C. financial
- D. strategic
Answer: A
Explanation:
Explanation
Table Description automatically generated
NEW QUESTION # 71
Which of the following FIDIC Contracts would be suitable for a contract for offshore wind projects?
- A. Yellow Book Contract
- B. Minor Works Contract
- C. Measured Term Contract
- D. Construction Contract
Answer: A
Explanation:
Explanation
This is the Yellow Book. This is briefly mentioned on p.74 and can often be missed by students. There is a question in the exam about which type of FIDIC contract can be used for construction projects and this is NOT explained in the study guide - so here is a link to FIDIC so you can revise this before the exam:
https://fidic.org/sites/default/files/FIDIC_Suite_of_Contracts_0.pdf
NEW QUESTION # 72
Logistics Risks are caused by...
- A. extended supply chains
- B. heightened ethical standards
- C. customer expectations
- D. economic instability
Answer: A
Explanation:
Explanation
Extended supply chains create logistic risks. This is from p. 29. Types of risks is a popular exam topic but the questions are usually quite straightforward like this.
NEW QUESTION # 73
Yusef is a new procurement manager at FRD Incorporated. He is looking through the Risk Assessments for his department and notices that the cause of the risk is not identified. Why might this be?
- A. the organisation has completed the risk assessments incorrectly
- B. this is a mistake - all risk assessments should specify the cause of the risk. He should raise this with his manager
- C. the organisation has a high risk appetite
- D. the organisation has not recorded cause for cultural reasons
Answer: D
Explanation:
Explanation
This could be for cultural reasons within the company.
P. 135 states that sometimes causes of risk are not recorded as this could lead to a blame culture within the company.
NEW QUESTION # 74
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