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Free CIPS L5M2 Practice Exam with Questions & Answers | Set: 2

Questions 11

A black swan event is what type of occurrence?

Options:
A.

an occurrence with a good outcome

B.

an occurrence with a negative outcome

C.

a common occurrence

D.

an unusual occurrence

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Questions 12

Which of the following legal principles means that a person can only claim the value of a loss once, regardless of if they have multiple insurance policies?

Options:
A.

utmost good faith

B.

insurable interest

C.

contribution

D.

subrogation

Questions 13

The UK Companies (Miscellaneous Reporting) Regulations 2018 states that organisations with more than 250 employees must do what?

Options:
A.

Publish an Anti-Slavery Policy

B.

Provide an annual financial statement

C.

Demonstrate how they abide by Environmental practices

D.

Publish a summary of how directors have engaged with employees

Questions 14

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

Options:
A.

Porter's 5 Forces

B.

STEEPLE

C.

SWOT

D.

Poisson Distribution

Questions 15

Who takes ownership for a Business Continuity Plan?

Options:
A.

the top level of an organisation

B.

the department head

C.

the risk champion of the company

D.

the individuals who identify the risks

Questions 16

Which of the following statements are true about risk management? Select TWO.

Options:
A.

the goal of risk management is to reduce risks to 0

B.

risk management is a continuous process

C.

risk management is an activity that is conducted by a business once a year

D.

risk management can help companies ensure the smooth and successful running of purchase and supply operations

E.

risk management is the process by which all risks are either treated or transferred

Questions 17

Juan is a Spanish business owner who imports several parts from Japan. Juan's business operates in Euros and the parts that he buys from Japan can often take a long time to arrive, this means that the price of the items sometimes fluctuates due to the exchange rate. Which of the following would be the best option for Juan?

Options:
A.

have the supplier quote in their own currency

B.

have the supplier quote in Juan's currency

C.

have the supplier match geographical profiles of customer sales with supplier purchases

D.

terminate the contract with the foreign supplier

Questions 18

Which of the following will you put into box 6?

Options:
A.

strategic

B.

intellectual property

C.

environment

D.

operational

Questions 19

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?

Options:
A.

Leadership and Learning

B.

Investment and Accountability

C.

Appraisal and Communication

D.

Learning and Information

Questions 20

Which of the following will you put into box 5?

Options:
A.

service credits

B.

NDA

C.

Conformance Specification

D.

Force Majeure

Exam Code: L5M2
Certification Provider: CIPS
Exam Name: Managing Supply Chain Risk
Last Update: Jul 15, 2025
Questions: 120

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