[2023] Easy To Download L5M2 Actual Exam Dumps Resources
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NEW QUESTION # 51
A black swan event is what type of occurrence?
- A. a common occurrence
- B. an occurrence with a good outcome
- C. an unusual occurrence
- D. an occurrence with a negative outcome
Answer: C
Explanation:
Explanation
A black swan event is an unusual occurrence - something that is rare. See p.124
NEW QUESTION # 52
Which of the following is not an internal risk for a business who imports raw materials from abroad?
- A. procurement fraud
- B. technology malfunction
- C. changes to import levies
- D. loss of customer data
Answer: C
Explanation:
Explanation
changes to import levies is an external risk. Not internal. See p.118-119 for more information on internal risks
- this is a popular exam topic. Internal risks are stuff that happens inside a company, external risks are risks from the external environment (whether this is political, economical, weather etc)
NEW QUESTION # 53
Fudgylicious Inc is a manufacturer of confectionary based in the United Kingdom. In one of its factories an employee has an accident during his shift which resulted in him breaking a leg and requiring surgery. Will the employer's Professional Indemnity insurance cover the cost of the operation?
- A. no- the insurance would not cover the cost of surgery, only for lost wages if he is unable to work
- B. no- this is not the purpose of insurance
- C. yes- the insurance will cover all medical expenses as the accident occurred during his working hours
- D. yes- the insurance can be used as the accident occurred on the company's premises
Answer: B
Explanation:
Explanation
The correct answer is 'no-this is not the purpose of insurance'. The question asks if Professional Indemnity Insurance can be claimed on for this- no it can't- that's not its purpose. It would be Employer's Liability insurance which could be claimed on. This question tests your understanding of the different types of insurance. There is a very similar question in the exam- so remember accidents at work are claimed against Employer's Liability insurance NOT Professional Indemnity insurance - see p.96 for more information on different types of insurance
NEW QUESTION # 54
Which of the following will you put into box 4?
- A. operational
- B. strategic
(Correct) - C. financial
- D. hazard
Answer: C
Explanation:
Explanation
Anything to do with currency is a financial risk.
NEW QUESTION # 55
Which of the following is an International Standard for Risk Management?
- A. ISO 27000
- B. ISO28000
- C. ISO 22301
- D. ISO31000
Answer: D
Explanation:
Explanation
Risk Management = ISO31000. Learn the ISOs for the exam as it's a popular exam topic. 31000 is explained on p. 140. As well as the numbers, you should also learn the guiding principles of each ISO for the exam.
NEW QUESTION # 56
Yusef is a new procurement manager at FRD Incorporated. He is looking through the Risk Assessments for his department and notices that the cause of the risk is not identified. Why might this be?
- A. this is a mistake - all risk assessments should specify the cause of the risk. He should raise this with his manager
- B. the organisation has completed the risk assessments incorrectly
- C. the organisation has a high risk appetite
- D. the organisation has not recorded cause for cultural reasons
Answer: D
Explanation:
Explanation
This could be for cultural reasons within the company.
P. 135 states that sometimes causes of risk are not recorded as this could lead to a blame culture within the company.
NEW QUESTION # 57
When would a company use the Stakeholder Salience Model?
- A. as part of a disaster recovery plan
- B. to inform stakeholders of potential risks
- C. to engage stakeholders in the development of risk assessments
- D. to show stakeholders how the company will mitigate risks
Answer: C
Explanation:
Explanation
This is used to engage stakeholders in the development of risk assessments.
P. 137-138
NEW QUESTION # 58
Which of the following will you put into box 2?
- A. treat
- B. transfer
- C. terminate
- D. tolerate
Answer: A
Explanation:
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.
NEW QUESTION # 59
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?
- A. holiday fraud
- B. bribery
- C. counterfeiting
- D. accepting a kick-back
Answer: B
Explanation:
Explanation
This is an example of bribery. The trip to Barbados is the bribe. For more information on these types of fraud see p.19
NEW QUESTION # 60
What would happen if a company enacts its Contingency Agreement following a natural disaster?
- A. they will receive operational help from a third party
- B. they will be able to claim on insurance
- C. they will be able to breach any contracts that it has
- D. they will receive a financial pay-out
Answer: A
Explanation:
Explanation
They will receive operational help from a third party is the correct answer. Unlike insurance, a contingency plan provides operational help, not just financial. This could be in providing an emergency workspace, helping to get IT systems back up and running or providing emergency air freight. This is explained on p.91-92 of the study guide
NEW QUESTION # 61
Which of the following will you put into box 2?
- A. treat
- B. transfer
- C. terminate
- D. tolerate
Answer: A
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated with low confidence
NEW QUESTION # 62
Which of the following is an internal risk for a company?
- A. supplier's factory burns down
- B. lack of available personnel
- C. government policy changes
- D. exchange rate fluctuations
Answer: B
Explanation:
Explanation
Lack of personnel is an internal risk- the others are external risks. Internal and external risks is a known topic for the exam so see p.116-117 for more information
NEW QUESTION # 63
Which of the following statements is true about ISO9001? Select TWO.
- A. it helps businesses to identify areas of potential risk and mitigate these accordingly
- B. it is based on the principle of continuous improvement
- C. it aims to ensure sustainability within the supply chain
- D. it encourages businesses to see quality from the viewpoint of the customer
- E. It complements ISO 20400
Answer: B,D
Explanation:
Explanation
ISO 9001 is Quality Management- answers 1 and 2 are correct. ISOs are a popular topic on this exam so be sure to revise them - and not only what the names of them are, but also the principles behind each ISO. ISO
9001 is discussed on p. 25 of the CIPS study guide.
NEW QUESTION # 64
Which of the following legal principles means that a person can only claim the value of a loss once, regardless of if they have multiple insurance policies?
- A. subrogation
- B. contribution
- C. utmost good faith
- D. insurable interest
Answer: B
Explanation:
Explanation
This is contribution. An example of this is if you have two insurance policies and are going on a business trip that is cancelled last minute. You can claim on the insurance the value of the trip- but only once. So you can either use one policy and not the other, or you can claim half the value of the trip on both policies. This stops people taking out multiple policies and then claiming on them all to make a profit. Legal Principles of Insurance is a known exam topic - this is from p.100-101 of the study guide
NEW QUESTION # 65
Which of the following will you put into box 7?
- A. dual sourcing
- B. insurance
- C. audit
- D. monitor
Answer: B
Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated with low confidence
NEW QUESTION # 66
Risk Management is a process with several steps. Which of the following is the last step of the cycle?
- A. identify risks
- B. monitor and review
- C. communicate and consult
- D. treat
Answer: B
Explanation:
Explanation
monitor and review is the last stage. The full cycle is; establish context - identify risks - analyse and evaluate risks - treat -communicate and consult - monitor and review. See p. 142
NEW QUESTION # 67
In an organisation, who is responsible for creating a risk assessment register?
- A. Risk Manager / H+S Manager
- B. Procurement Manager
- C. the CEO
- D. Cross-Functional Team
Answer: D
Explanation:
Explanation
A Cross Functional Team should create a risk register. It shouldn't be the responsibility of one person to do this- more points of view will lead to more risks being identified. Accountability for the Risk Register may however sit with the CEO or a Department Manager. This is explained on p. 132
NEW QUESTION # 68
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