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CIPS Managing Supply Chain Risk Sample Questions (Q82-Q87):

NEW QUESTION # 82
Which of the following will you put into box 8?

• A. insurance
• B. monitor
• C. dual sourcing
• D. audit

Answer: D

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

NEW QUESTION # 83
Which of the following is an example of hedging?

• A. audits
• B. dual-sourcing
• C. risk assessments
• D. insurance

Answer: D

Explanation:
Explanation
Insurance is a form of hedging. Hedging is using a financial instrument to offset the potential risk of an adverse loss (p.93) none of the other options mentioned are financial instruments.

NEW QUESTION # 84
Which of the following insurances would provide cover in the eventuality that your supplier's place of business flooded and this affected your deliveries?

• A. public liability insurance
• B. business interruption insurance
• C. property insurance
• D. contingent business interruption insurance

Answer: D

Explanation:
Explanation
This is 'contingent business interruption' insurance. This protects you if anything were to happen to your suppliers' premises. Business Interruption Insurance would cover you if something were to happen to your premises. See p.99

NEW QUESTION # 85
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?

• A. yes- all companies trading on the stock exchange must do this
• B. yes- all companies in the UK must follow this
• C. no- but if it doesn't follow a Corporate Governance Code it must explain the reasons why not
• D. no- corporate governance codes are not mandatory

Answer: C

Explanation:
Explanation
The correct answer is 4 - the policy is 'comply or explain' - basically say which code you follow, or explain (publicly) why you're not following one. See p. 145 for more information on this

NEW QUESTION # 86
Which of the following will you put into box 3?

• A. transfer
• B. treat
• C. terminate
• D. tolerate

Answer: C

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

The consequences of this risk are huge, therefore the risk should be terminated. This means the cause of the risk is taken away (i.e. the animal testing).

NEW QUESTION # 87
......

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