L5M2 exam

Which of the following will you put into box 7?A . new technology B. forward contract C. outsource D. insuranceView AnswerAnswer: C Explanation: Table Description automatically generated

Which of the following will you put into box 5?A . audit B. monitor C. insurance D. dual sourcingView AnswerAnswer: B Explanation: The correct answers are as follows: Table Description automatically generated with low confidence

Which of the following will you put into box 2?A . transfer B. treat C. tolerate D. terminateView AnswerAnswer: 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.

Oliver is a procurement manager and he is trying to work out the likelihood that a supplier fails to deliver to the warehouse two days in a row. Which of the following methodologies should Oliver use?A . value at risk B. normal distribution C. binomial distribution D. Poisson DistributionView AnswerAnswer:...

Which of the following stages would come first within a risk assessment?A . evaluate risk B. treat risk C. monitor risk D. analyse riskView AnswerAnswer: D Explanation: analyse is the correct answer. The full process is: establish context- identify- analyse - evaluate - treat - monitor and review. This is...

Which of the following form part of the Stakeholder Salience Model? Select TWOA . power B. legitimacy C. interest D. level E. attitudeView AnswerAnswer: A Explanation: Power and Legitimacy are part of the Stakeholder Salience Model - the third characteristic is Urgency. See p. 138

Which of the following statements is true about a Disaster Recovery Plan? Select TWOA . it is held at the top level B. it contains more detail than a business continuity plan C. the focus is to return a company to making a profit after a disaster D. it can...

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. 50-50View AnswerAnswer: C Explanation:

What would happen if a company enacts its Contingency Agreement following a natural disaster?A . they will receive a financial pay-out B. they will receive operational help from a third party C. they will be able to claim on insurance D. they will be able to breach any contracts that...

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...