Free CIPS L5M2 Practice Exam with Questions & Answers | Set: 4

Explanation

The correct answers are as follows:

Table Description automatically generated

A force majeure clause within a contract would allow XWY to end any contracts it is unable to fulfil without repercussions if an earthquake were to strike.

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).

Explanation

The correct answers are as follows:

Table Description automatically generated

Standardised payment terms would help with cashflow. For example every client must pay within 30 days.

Explanation

The correct answers are as follows:

Table Description automatically generated with low confidence

Explanation

The correct answers are as follows:

Table Description automatically generated

Cashflow issues can lead to serious financial problems and the company going bust. Therefore this risk must be treated.