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NEW QUESTION 46
Which of the following is an internal risk for a company?

• A. exchange rate fluctuations
• B. lack of available personnel
• C. government policy changes
• D. supplier's factory burns down

Answer: B

Explanation:
Explanation
Lack of personnel is an internal risk- the others are external risks. Internal and external risks is a known topic for the exam so see p.116-117 for more information

NEW QUESTION 47
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?

• A. no - a 3rd party can only help in the solution stage of disaster recovery, not the planning stage
• B. 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
• C. yes- a third party is a cheap option for disaster recovery planning
• D. yes- a 3rd party can provide broader experience and expertise

Answer: D

Explanation:
Explanation
The correct answer is 1 - the 3rd party can provide broader experience and expertise. They can advise on best practice and will know how to advise Robot Ltd as they will have experience across a wide range of companies. This is explained on p.91 of the study guide

NEW QUESTION 48
There are three main areas where third party suppliers are used in risk management. What are they?

• A. contract negotiations
• B. supply chain management
• C. disaster recovery
• D. credit ratings
• E. risk auditing

Answer: C,D,E

Explanation:
Explanation
3 4 and 5 are the correct answers. This is from p. 79 of the textbook - each of these three areas is then covered in detail throughout chapter 2.2.

NEW QUESTION 49
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