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Managing Supply Chain Risk

Last Update 3 hours ago Total Questions : 120

The Managing Supply Chain Risk content is now fully updated, with all current exam questions added 3 hours ago. Deciding to include L5M2 practice exam questions in your study plan goes far beyond basic test preparation.

You'll find that our L5M2 exam questions frequently feature detailed scenarios and practical problem-solving exercises that directly mirror industry challenges. Engaging with these L5M2 sample sets allows you to effectively manage your time and pace yourself, giving you the ability to finish any Managing Supply Chain Risk practice test comfortably within the allotted time.

Question # 21

Zara is a procurement manager who is thinking about working with a new supplier to source buttons for her clothes manufacturing business. Her manager has asked her to do some due diligence on the supplier ' s financial stability. What should she do?

A.

use an outsourced third-party credit rating agency

B.

use an outsources third-party risk management consultant

C.

conduct a credit check on the supplier based on the information provided by them in the tender

D.

conduct a risk assessment based on the information provided by the supplier in the tender

Question # 22

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

A.

supplier ' s factory burns down

B.

exchange rate fluctuations

C.

government policy changes

D.

lack of available personnel

Question # 23

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?

A.

yes- hedging is the only solution to mitigate the risk of adverse price movements

B.

yes- this reduces the risk to 0

C.

no- Leo LLP could do nothing and increase its prices instead

D.

no- Leo LLP can take out insurance to mitigate this risk

Question # 24

Which of the following will you put into box 2?

A.

strategic

B.

intellectual property

C.

environment

D.

operational

Question # 25

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. What is this an example of?

A.

corporate social responsibility

B.

greenwashing

C.

triple bottom line thinking

D.

business continuity planning

Question # 26

Maple Tree Limited is a Canadian company who has recently signed a new contract with a supplier who is based in China. Maple Tree Limited will be buying a raw material with a reputation for severe price fluctuations. Which of the following would help mitigate the risk that this poses? Select TWO options

A.

quote in the supplier ' s currency

B.

quote in the buyer ' s currency

C.

use a forward exchange contract

D.

fix the exchange rate at the current rate

Question # 27

Kevin is a consultant who works for himself and is predominantly based at home, except for when he visits clients. He has recently taken on a role advising a client about the feasibility of building a new railway station in a village. Which of the following insurances would be vital for Kevin to take out?

A.

product liability

B.

public liability

C.

trade credit

D.

professional indemnity

Question # 28

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?

A.

copywrite

B.

patent

C.

trademark

D.

trade secret

Question # 29

A financial instrument used by airlines to fix the price of fuel over a period of time is known commonly as a what?

A.

commodity

B.

swap

C.

exchange

D.

hedge

Question # 30

An interconnected supply chain would have what affect on the creation of a risk register?

A.

risks will be larger

B.

risks will sit with the procurement team

C.

actions to mitigate one risk, may create a new risk

D.

actions to mitigate risks will require a cross-functional team

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