CIPS L5M2 Exam Dumps

Get All Managing Supply Chain Risk Exam Questions with Validated Answers

L5M2 Pack
Vendor: CIPS
Exam Code: L5M2
Exam Name: Managing Supply Chain Risk
Exam Questions: 120
Last Updated: February 27, 2026
Related Certifications: Level 5 Advanced Diploma in Procurement and Supply
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Free CIPS L5M2 Exam Actual Questions

Question No. 1

Which of the following will you put into box 5?

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Correct Answer: B

The correct answers are as follows:

Cashflow issues can lead to serious financial problems and the company going bust. Therefore this risk must be treated.


Question No. 2

Envy Manufacturing has several factories located in countries with poor reputations for human rights. It is concerned about potential risks of child labour being used within the supply chain. Envy Manufacturing has therefore decided to enlist the support of a third party auditing company to audit its factories. How should these audits be conducted? Select TWO

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Correct Answer: B, D

2 and 4 are correct. Audits should be unscheduled so that any issues can't be covered up in advance. Interviews with workers should also be conducted in private as this will allow them to speak their mind with confidence. Where interviews are conducted as a group there may be peer-pressure to say the correct thing. especially if there are managers around. see p.88 for information on Audits


Question No. 3

Controlling a risk through the development of actions that can minimise the impact the organisation will suffer as a result of the risk event is known as what control?

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Correct Answer: B

This is the description of treat mentioned on p. 143. The 4 Ts is a popular exam topic


Question No. 4

There are three main areas where third party suppliers are used in risk management. What are they?

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Correct Answer: C, D, E

3 4 and 5 are the correct answers. This is from p. 79 of the textbook - each of these three areas is then covered in detail throughout chapter 2.2.


Question No. 5

Which of the following will you put into box 2?

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Correct Answer: B

The correct answers are as follows:

Cashflow issues can lead to serious financial problems and the company going bust. Therefore this risk must be treated.


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