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MASTERING L5M2: KEY STRATEGIES WITH EXAM DUMP RESOURCES -
HTTPS://WWW.CERTKILLERS.NET/EXAM/L5M2


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Questions
&Answers PDF
Page 1
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certkillers.net
CIPS
L5M2 Exam
Managing
Supply Chain Risk
Thank you for Downloading
L5M2 exam PDF Demo
You can buy Latest
L5M2
Full Version Download
https://www.certkillers.net/Exam/
L5M2



Questions
&Answers PDF
Page 2
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certkillers.net
Version:
4.0
Question:
1
Which of the following
statements
are true about risk management?
Select TWO.
A. the goal of risk management
is to reduce risks to 0
B. risk management
is acontinuous
process
C. risk management
is an activity that is conducted
by abusiness once ayear
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
Answer: B, D
Explanation:
The correct responses
are 2and 4: risk management
is acontinual
process and helps companies
ensure
the smooth and successful
running of P+S. These are direct quotes from p.3 of the study guide. The other
answers are wrong- if risk management
is a continuous
process it's not something
that is done once a
year- so this option is automatically
discounted.
Option 1is also wrong as you can never reduce all risks
to 0, and option 5is also wrong- risks can be treated and transferred,
butthey can also be tolerated
and
terminated.
Question:
2
Acompany with alarge risk appetite would do which of the following?
A. ta ke all risks
B. ta ke risks where it feels it will win more than it loses
C. ta ke few, well calculated
risks
D. avoid ta k i ng risks
Answer: B
Explanation:
2is the correct answer. Risk appetite is the level of risk that an individual
or organisation
is comfortable
ta k i ng (p.4). Having alarge risk appetite does not mean that you want to ta
ke every risk (as that would
be irresponsible),
rather, a large risk appetite means you're more likely to gamble and ta ke
calculated
risks, even though they might not pay off. A small risk appetite would describe
options 3and 4-ta k i ng
few risks, or none at all.









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