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| Vendor: | CIPS |
|---|---|
| Exam Code: | L5M2 |
| Exam Name: | Managing Supply Chain Risk |
| Exam Questions: | 120 |
| Last Updated: | November 21, 2025 |
| Related Certifications: | Level 5 Advanced Diploma in Procurement and Supply |
| Exam Tags: |
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Who takes ownership for a Business Continuity Plan?
A Business Continuity Plan is held at the top level. See p. 155
Which of these is a type of Intellectual Property protection? Select TWO
Patent and Trademark are types of IP protection. There are 4 in total - the other two are copywrite and trade secret. This is covered on p.63-64 of the study guide
Which of the following statements are true about risk management? Select TWO.
The correct responses are 2 and 4: risk management is a continual process and helps companies ensure the smooth and successful running of P+S. These are direct quotes from p.3 of the study guide. The other answers are wrong- if risk management is a continuous process it's not something that is done once a year- so this option is automatically discounted. Option 1 is also wrong as you can never reduce all risks to 0, and option 5 is also wrong- risks can be treated and transferred, but they can also be tolerated and terminated.
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?
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
Which of the following will you put into box 5?
The correct answers are as follows:

A force majeure clause within a contract would allow XWY to end any contracts it is unable to fulfil without repercussions if an earthquake were to strike.
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