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The CIPS L5M2 certification exam covers a range of topics related to supply chain risk management, including the identification, analysis, and mitigation of risks in the supply chain. The exam also covers topics such as business continuity planning, risk assessment methodologies, and the development of risk management strategies. Additionally, the exam evaluates candidates' ability to communicate effectively with stakeholders and manage relationships with suppliers and other supply chain partners.
The CIPS L5M2 (Managing Supply Chain Risk) Certification Exam is a globally recognized professional certification program designed for supply chain professionals who are looking to enhance their knowledge and expertise in the field of managing supply chain risk. This certification program is offered by the Chartered Institute of Procurement and Supply (CIPS), which is a leading international organization that promotes best practices in procurement and supply chain management.
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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 (Q103-Q108):
NEW QUESTION # 103
The legal principle of insurable interest means which of the following statements are TRUE? Select TWO.
- A. it is not possible to insure someone else's factory
- B. it is possible to insure your supplier's factory
- C. it is not possible to insure your supplier's factory
- D. it is possible to insure someone else's factory
Answer: A,B
Explanation:
Explanation
Insurable Interest means that it is not possible to insure someone else's factory. The study guide explains that you can only take out insurance where you have at least partial ownership of that risk. Therefore option 3 is also correct as you have a partial risk if something were to happen to your supplier's factory. You can take out CBI insurance for this. see p.100-101 for further explanations of Legal Principles of Insurance
NEW QUESTION # 104
What is the final stage of Deming's Plan - Do - Check cycle which is encouraged by ISO9001?
- A. Review
- B. Act
- C. Assess
- D. Improve
Answer: B
Explanation:
Explanation
Act is the final stage. See p.25 for a diagram of the cycle.
NEW QUESTION # 105
A black swan event is what type of occurrence?
- A. a common occurrence
- B. an unusual occurrence
- C. an occurrence with a good outcome
- D. an occurrence with a negative outcome
Answer: B
Explanation:
Explanation
A black swan event is an unusual occurrence - something that is rare. See p.124
NEW QUESTION # 106
Which of the following is an example of force majeure?
- A. The supplier asks for an uplift in prices
- B. The supplier's factory is hit by a hurricane
- C. The supplier delivers materials late due to a breakdown
- D. The supplier is under criminal investigation for fraud
Answer: B
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 # 107
What would happen if a company enacts its Contingency Agreement following a natural disaster?
- A. they will receive a financial pay-out
- B. they will receive operational help from a third party
- C. they will be able to breach any contracts that it has
- D. they will be able to claim on insurance
Answer: B
Explanation:
Explanation
They will receive operational help from a third party is the correct answer. Unlike insurance, a contingency plan provides operational help, not just financial. This could be in providing an emergency workspace, helping to get IT systems back up and running or providing emergency air freight. This is explained on p.91-92 of the study guide
NEW QUESTION # 108
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