CIPS-L5M2-MSCR : CIPS Level 5 Managing Supply Chain Risk Exam

CIPS-L5M2-MSCR Dumps
CIPS-L5M2-MSCR Braindumps CIPS-L5M2-MSCR Real Questions CIPS-L5M2-MSCR Practice Test CIPS-L5M2-MSCR Actual Questions
killexams.com
CIPS
CIPS-L5M2-MSCR
CIPS Level 5 Managing Supply Chain Risk
https://killexams.com/pass4sure/exam-detail/CIPS-L5M2-MSCR
Question: 29
Leo LLP is a company which sources materials internationally, and then sells these on nationally at a small margin. Leo LLP has noted that there is a risk of exchange rate fluctuations making their purchases unviable. The CFO has declared that the only way to mitigate this risk is via hedging and that they should look at price fixing. is this correct?
1. yes- hedging is the only solution to mitigate the risk of adverse price movements
2. yes- this reduces the risk to 0
3. no- Leo LLP could do nothing and increase its prices instead
4. no- Leo LLP can take out insurance to mitigate this risk
Answer: C
Explanation:
The correct answer is 3 'no Leo LLP could do nothing and increase its prices instead'. Firstly the CFO is wrong. There are other ways to mitigate this risk than hedging- hedging isn't the ONLY thing you can do. Therefore you automatically need to discount options that begin with yes. Then looking at the options that begin with no, insurance isn't going to help in this situtation. Therefore, by process of elimination you will be left with 'no Leo LLP could do nothing and increase its prices instead'.
This question is taken from p.95 - there is a section here describing alternatives to hedging. When dealing with currency fluctuations, an alternative to fixing a price is to build in a margin on your own prices. This margin acts as a buffer for if prices go up- your price can remain the same. Other alternatives to hedging suggested by CIPS include; negotiating long term contracts, buying out the supplier and ingredient substitution
Question: 30
Which of the following will you put into box 3?
1. hazard
2. financial
3. strategic (Correct)
4. operational
Answer: C
Explanation:
An aging workforce is a strategic risk for the business.
Question: 31
Which of the following stages would come first within a risk assessment?
1. evaluate risk
2. treat risk
3. monitor risk
4. analyse risk
Answer: D
Explanation:
analyse is the correct answer. The full process is: establish context- identify- analyse - evaluate - treat - monitor and review. This is from p.122
Question: 32
Which of the following will you put into box 2?
1. transfer
2. treat
3. tolerate
4. terminate
Answer: B
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.
Question: 33
Which of the following are factors which can lead to a supplier becoming insolvent? Select THREE
1. fraudulent activity
2. attrition of key employees
3. uncontrolled expenditure
4. increased market share
5. a high financial ratio
Answer: A,B,C
Explanation:
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'
Question: 34
A black swan event is what type of occurrence?
1. an occurrence with a good outcome
2. an occurrence with a negative outcome
3. a common occurrence
4. an unusual occurrence
Answer: D
Explanation:
A black swan event is an unusual occurrence - something that is rare. See p.124
Question: 35
Which of the following statements about binomial distribution are true? Select THREE
1. there are only two outcomes
2. they are based on continuous events
3. there is only one outcome per event
4. each trial has the same probability
5. the events of one trial will impact on the next one
Answer: A,C,D
Explanation:
1, 3 and 4 are the correct options. Binomial is based on discreate events not continuous and it assumes the events of each trial are independent of one another. This YouTube video explains it all perfectly using the chance that an ice- cream cone is broken. It's a nice memorable example to help you remember what binomial distribution is and how it works: https://www.youtube.com/watch?v=3EZbX2ftCUk - it's a very memorable example and really helped me. You can also see more info in the cips textbook p.131
Question: 36
Which of the following are key areas of ISO 26000 Social Responsibility? Select THREE.
1. organisational governance
2. quality management
3. human rights
4. consumer issues
5. efficient systems
Answer: A,C,D
Explanation:
1 3 and 4 are the correct answers. There are 7 key areas that ISO 26000 focuses on. As well as these three, there is also labour practices, the environment, fair operating practices and community involvement. See p. 51 of the study guide. ISOs are a popular exam topic so do revise these before the exam.
Question: 37
In probability theory, the chances of a coin landing on heads would be expressed in what way? A. 50%
B. one half C. 0.5
D. 50-50
Answer: C
Explanation:
Question: 38
A financial instrument used by airlines to fix the price of fuel over a period of time is known commonly as a what?
1. commodity
2. swap
3. exchange
4. hedge
Answer: B
Explanation:
This is a 'swap' and is explained on p.94. This is a type of 'hedging' but there is no such thing as 'a hedge'. For a more in-depth look at Swaps see: https://www.mercatusenergy.com/blog/bid/77634/an-introduction-to-airline-fuel-hedging- strategies-swaps
Question: 39
Which of the following FIDIC Contracts would be suitable for a contract for offshore wind projects?
1. Construction Contract
2. Measured Term Contract
3. Minor Works Contract
4. Yellow Book Contract
Answer: D
Explanation:
This is the Yellow Book. This is briefly mentioned on p.74 and can often be missed by students. There is a question in the exam about which type of FIDIC contract can be used for construction projects and this is NOT explained in the study guide - so here is a link to FIDIC so you can revise this before the exam: https://fidic.org/sites/default/files/FIDIC_Suite_of_Contracts_0.pdf
Question: 40
Which of the following will you put into box 6?
1. audit
2. monitor
3. insurance
4. dual sourcing
Answer: D
Explanation:
The correct answers are as follows: Table
Description automatically generated with low confidence

User: Walter***** I needed to pass the CIPS LEVEL 5 MANAGING SUPPLY CHAIN RISK exam to maintain my job at a cutting-edge corporation, and Killexams.com guidance package was instrumental in my success. The CIPS LEVEL 5 MANAGING SUPPLY CHAIN RISK questions and answers provided in the package were comprehensive and accurate, and the exam simulator was an effective tool for practice. I am proud to say that I am now CIPS LEVEL 5 MANAGING SUPPLY CHAIN RISK certified, thanks to the excellent work of Killexams.com.

User: Malishka***** Passing the cips-l5m2-mscr exam was quite tough for me until I came across Killexams. Some of the topics were regarded as very tough to me, and I attempted to study from books, but failed as time was too short. In the end, the practice tests helped me understand the topics and wrap up my guidance in just 10 days. Killexams, you were an excellent guide, and my heartfelt thanks to you.

User: Revekka***** I passed the CIPS-L5M2-MSCR exam thanks to killexams.com. The questions were accurate, and the study material was reliable, meeting and exceeding my expectations. I have recommended it to colleagues, and I believe it is an excellent choice for anyone looking for reliable practice tests.

User: Mariana***** I highly recommend Killexams.com as an excellent way to prepare for the CIPS-L5M2-MSCR exam. I used this package to prepare for my CIPS-L5M2-MSCR exam and did not set my expectations too high. I made sure to follow the professional syllabus to ensure that I did not miss any topics. Killexams.com had all the topics covered, and the coaching was very robust. On the exam day, I felt confident, and what made it even better was that the questions were exactly the same as those provided by Killexams.com. This is a terrific resource, and I highly recommend it.

User: Rina***** Passing the CIPS-L5M2-MSCR exam was a challenging task, but killexams.com helped me gain composure by using their CIPS-L5M2-MSCR practice tests to prepare myself for the exam. The CIPS-L5M2-MSCR exam simulator was a useful tool that enabled me to pass the CIPS-L5M2-MSCR exam and get promoted in my organization.

---