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CIPS L5M2 Managing Supply Chain Risk Exam Practice Test
Question 1
Which of the following is an International Standard for Risk Management?
Answer : D
Risk Management = ISO31000. Learn the ISOs for the exam as it's a popular exam topic. 31000 is explained on p. 140. As well as the numbers, you should also learn the guiding principles of each ISO for the exam.
Question 2
The triple bottom line is a way to refer to sustainability practices. Which of the following is included within the Triple Bottom Line? 1. People, 2. Profit, 3. Price, 4. Planet 5. Power.
Answer : D
Triple Bottom Line - people, profit and planet - options 1, 2 and 4. See p.45 for more details on sustainability
Question 3
John is a mid-level manager and has created a risk / reward matrix about four potential opportunities at his company White Ducky Limited. He will present his research to a board meeting next week. He has categorised the four opportunities as the following. Which of these opportunities should John recommend the board 'consider'? Select TWO.
Answer : B, C
High risk/ high reward, and low risk/ low reward are the options that should be CONSIDERED. This is according to the risk/ reward matrix on p. 6. Items that are low risk/ high reward should be PROGRESSED and items which are high risk / low reward should be AVOIDED.
Question 4
Risk Management is a process with several steps. Which of the following is the last step of the cycle?
Answer : C
monitor and review is the last stage. The full cycle is; establish context - identify risks - analyse and evaluate risks - treat -communicate and consult - monitor and review. See p. 142
Question 5
Which organisation created the Decent Work Agenda?
Answer : C
This is from ILO- the International Labour Organisation - see p.49 of the textbook. You should recognise all four of these acronyms as they come up in this module UN= United Nations - they have the Guiding Principles, ISO = produce standards for business practices and ETI = Ethical Trading Initiative - they have a base code for labour practices.
Question 6
Which of the following will you put into box 5?
Answer : A
The correct answers are as follows:
CSR= Corporate Social Responsibility
Question 7
Which of the following will you put into box 5?
Answer : B
The correct answers are as follows:
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