CIPS L5M2 practice materials Questions Answers

Exam Code:
L5M2
Exam Name:
Managing Supply Chain Risk Exam
Last Update:
Jun 01,2026

120 Questions Answers Verified by Experts!


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CIPS L5M2 Questions for Level 5 Advanced Diploma in Procurement and Supply Certification Exam 2026

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Managing Supply Chain Risk Exam L5M2 practice questions with explanations

 

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Page: 1 / 24
Total Questions: 120

Questions & Answers PDF

• Question 1

  

  Which of the following form part of the Stakeholder Salience Model? Select TWO

  • power
  • legitimacy
  • interest
  • level
  • attitude

  Reveal Answer Answer: A Next Question

• Question 2

  

  Which of the following is an internal risk for a company?

  • supplier's factory burns down
  • exchange rate fluctuations
  • government policy changes
  • lack of available personnel

  Reveal Answer Answer: D Next Question

• Question 3

  

  Which of the following are technological risks to an organisation? Select TWO

  • cyber-security issue
  • supply chain security issue
  • supplier management issue
  • network failure
  • quality failure

  Reveal Answer Answer: A, D Next Question

• Question 4

  

  In an organisation, who is responsible for creating a risk assessment register?

  • the CEO
  • Procurement Manager
  • Risk Manager / H+S Manager
  • Cross-Functional Team

  Reveal Answer Answer: D Next Question

• Question 5

  

  Jan is a chef who has created a new type of curry. She is worried that another chef may steal her curry recipe so is wanting to protect this. Which type of IP protection should Jan take out?

  • copywrite
  • patent
  • trademark
  • trade secret

  Reveal Answer Answer: D Next Question

• Question 6

  

  Company DDD has recently seen a drop in share price and has high levels of Work-in-Progress (WIP) due to late supplier deliveries. Which of the following is the type of risk the business facing?

  • financial
  • logistical
  • opportunity
  • reputation

  Reveal Answer Answer: A Next Question

• Question 7

  

  Dave is a procurement manager for a chocolate factory who is running a tender to source cocoa from a new supplier. The tender is a huge opportunity for suppliers and the contract would be worth millions of pounds. Dave has passed some information about the tender to one of the bidders in exchange for a free holiday to Barbados. Which of the following types of fraud has Dave committed?

  • holiday fraud
  • accepting a kick-back
  • counterfeiting
  • bribery

  Reveal Answer Answer: D Next Question

• Question 8

  

  ISO 31000 is built on 11 guiding principles. Identify THREE of these.

  • Risk management can create value
  • Risk Management should take into account company culture
  • Risk Management should address uncertainty faced by the organisation
  • Risk Management should be done annually
  • Risk Management should include only the Departments affected by risk

  Reveal Answer Answer: A, B, C Next Question

• Question 9

  

  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

  Reveal Answer Answer: C Next Question

• Question 10

  

  Which of the following risks is associated with sourcing from low-cost countries? Select TWO:

  • operational risks
  • reputational risks
  • geopolitical risks
  • financial risks

  Reveal Answer Answer: B, C Next Question

Page: 1 / 24
Total Questions: 120

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