L5M2 Practice Exams and Training Solutions for Certifications [Q69-Q91]

考试助推器 12 月 26, 2022 L5M2 > CIPS 0

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L5M2 Practice Exams and Training Solutions for Certifications

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第 69 号 Which of the following will you put into box 5?

service credits

NDA

Conformance Specification

Force Majeure

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

NO.70 What would happen if a company enacts its Contingency Agreement following a natural disaster?

they will receive a financial pay-out

they will receive operational help from a third party

they will be able to claim on insurance

they will be able to breach any contracts that it has

说明
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

第 71 号 Fraud committed by an employee within a business is what type of risk?

internal risk

external risk

procurement risk

economic risk

说明
This is an internal risk. A procurement risk would be issues with a supplier or contract, and economic risk would be exchange rate fluctuations etc. See p.118 for more information on internal risks- it’s a known exam topic

第 72 号 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?

utmost good faith

insurable interest

contribution

subrogation

说明
This is contribution. An example of this is if you have two insurance policies and are going on a business trip that is cancelled last minute. You can claim on the insurance the value of the trip- but only once. So you can either use one policy and not the other, or you can claim half the value of the trip on both policies. This stops people taking out multiple policies and then claiming on them all to make a profit. Legal Principles of Insurance is a known exam topic – this is from p.100-101 of the study guide

第 73 号 Company X is a large manufacturer of cosmetics and household products. It operates in 57 different countries and has large and complex supply chains. The brand’s popularity is partly due to the cheap price of the products compared with its competitors and Company X has recently discovered that child labour has been used within its supply chain. In response to this Company X has donated a large amount of money to charity.
这是什么例子？

corporate social responsibility

greenwashing

triple bottom line thinking

business continuity planning

说明
This is Greenwashing. Greenwashing is the process of using a good deed to cover up unethical responsibility.
See p. 45. In this example Company X has thrown some money at a charity in order to cover up the fact it has child labour issues within the supply chain. See https://en.wikipedia.org/wiki/Greenwashing

第 74 号 The legal principle of insurable interest means which of the following statements are TRUE? Select TWO.

it is possible to insure someone else’s factory

it is not possible to insure someone else’s factory

it is possible to insure your supplier’s factory

it is not possible to insure your supplier’s factory

说明
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

第 75 号 The USA Foreign Corrupt Practices Act (FCPA) is further reaching than the UK’s Bribery Act 2010. Is this statement true?

yes- the FCPA covers ‘private bribes’ and the Bribery Act does not

yes- the FCPA exempts facilitation payments

No- the Bribery Act extends to third parties and the FCPA does not

No- the Bribery Act doesn’t account for facilitation payments

说明
The correct answer is 3. Firstly you can half the number of responses by looking at the yes / no. The UK Bribery Act is further reaching than the FCPA. Therefore the statement is False. You can therefore discount the options that start with yes. Of the two remaining statements only one of them is true and that is number 3- the Bribery Act extends to third parties and the FCPA does not. Option 4 is incorrect as the Bribery Act DOES account for facilitation payments. Its to FCPA that doesn’t. This is explained on p. 36 of the study guide

NO.76 Controlling a risk through the development of actions that can minimise the impact the organisation will suffer as a result of the risk event is known as what control?

tolerate

treat

transfer

terminate

说明
This is the description of treat mentioned on p. 143. The 4 Ts is a popular exam topic

第 77 号 Which of the following will you put into box 3?

hazard

financial

strategic
(Correct)

operational

说明

An aging workforce is a strategic risk for the business.

第 78 号 There are three main areas where third party suppliers are used in risk management. What are they?

contract negotiations

supply chain management

credit ratings

risk auditing

disaster recovery

说明
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.

第 79 号 Kieran works in the manufacturing industry and his company have just implemented LEAN production processes. Will this increase or decrease the risks in relation to security of supply?

increase security of supply risks as this is a tried and tested risk reducing process

increase security of supply risks as there is less buffer stock held on site

decrease security of supply risks as there will be increased efficiencies

decrease security of supply risks as there is less buffer stock

说明
2 ‘increase security of supply risks as there is less buffer stock held on site’ is the correct answer. With Lean manufacturing there is little or no buffer stock held. This means that if a supplier doesn’t deliver on time, the whole manufacturing process will have to come to a stop until new supplies arrive. A risk of Lean Manufacturing is that you become too reliant on suppliers, and if there is a scarcity of resources or an issue with the supply chain, you are more exposed. See p.26-27 for more information on Security of Supply Risks.

NO.80 Logistics Risks are caused by…

heightened ethical standards

customer expectations

extended supply chains

economic instability

说明
Extended supply chains create logistic risks. This is from p. 29. Types of risks is a popular exam topic but the questions are usually quite straightforward like this.

NO.81 Which of the following will you put into box 4?

hazard

financial

strategic
(Correct)

operational

说明

Anything to do with currency is a financial risk.

第 82 号 Which of the following are factors which can lead to a supplier becoming insolvent? Select THREE

fraudulent activity

attrition of key employees

uncontrolled expenditure

increased market share

a high financial ratio

说明
1 2 and 3 are factors which can lead to a supplier becoming insolvent. 4- increased market share is a good thing, as it indicates the supplier is doing better than their rivals. A high financial ratio is also a good thing as it shows they have more assets than debt – so this is not a sign of insolvency. See p.24 for ‘Supplier Risks’

第 83 号 SA 8000 is an alternative to which ISO?

9001

27000

310000

20400

说明
SA8000 is Social Accountability, this is an alternative to ISO 20400 which is Sustainable Procurement. This is explained on p.53 of the study guide. ISOs are a popular exam topic, so ensure you know these four mentioned here before the exam

第 84 号 Khalid is a procurement manager who works at a manufacturing organisation based in the UK. The organisation creates building fabric materials by converting raw materials such as steal into useable items in the construction industry. Khalid sources most of his steal internationally due to competitive prices. On one occasion with his usual supplier, the ship that is carrying the materials sinks due to an unexpected storm.
Which clause would be activated within the contract?

force majeure

liability clause

transportation clause

breach of contract

说明
this is an example of force majeure. Force majeure is a popular exam topic and comes up in chapter 2.1 p. 66.
A force majeure is when an event, such as a storm, happens which affects the delivery of the contract, but over which neither party has any control.

NO.85 What is the purpose of an indemnity clause within a contract?

to assign risk to each party

to ensure both parties are adequately insured if something were to go wrong

to transfer risk from one party to another

to explain what would happen in the case of a force majeure

说明
Indemnity clauses transfer risk from one party to another. It is an arrangement whereby one party promises to compensate the other party for a trigger event. An example of an indemnity clause could be a construction firm is building a new bridge and the project is supposed to be completed by 1st June. An indemnity clause may state that should the bridge not be ready by this date, the construction firm will compensate the buyer by X amount. See p.61 for more information on indemnity.

第 86 号 ISO 20400 represents what area of business?

Quality Management

Supply Chain Security

Risk Management

Sustainable Procurement

说明
ISO 20400 is Sustainable Procurement. This is from p. 51 of the study guide- as well as learning what the ISO numbers are, do also learn the key areas of each ISO as these come up in the exam.

第 87 号 Which of the following will you put into box 5?

new technology
(Correct)

forward contract

outsource

insurance

说明

New technology (ie a new web portal or payment mechanism) would help treat this risk.

NO.88 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?

yes- a 3rd party can provide broader experience and expertise

yes- a third party is a cheap option for disaster recovery planning

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

no – a 3rd party can only help in the solution stage of disaster recovery, not the planning stage

说明
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

第 89 号 Which of the following statements is true about a Disaster Recovery Plan? Select TWO

it is held at the top level

it contains more detail than a business continuity plan

the focus is to return a company to making a profit after a disaster

it can be structured using a standardised framework

说明
Answers 2 and 4 are correct. A Business Continuity Plan is held at the top level, not a disaster recovery plan.
This can be held at the department level- or whoever would have the ability to enact this if a disaster were to happen. A company is likely to have several Disaster Recovery Plans for different departments and different scenarios so several people within the organisation may be accountable for these. Option 3 is incorrect as the focus is on recovering systems (e.g. getting people back online) not on profit. P.155

NO.90 Which of the following is an example of force majeure?

The supplier delivers materials late due to a breakdown

The supplier asks for an uplift in prices

The supplier is under criminal investigation for fraud

The supplier’s factory is hit by a hurricane

说明
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

第 91 号 Which of the following will you put into box 7?

audit

monitor

insurance

dual sourcing

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