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: October 8, 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 models would be used to explore internal and external risks to a business?

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Correct Answer: C

SWOT is used for this. S + W is strengths and weaknesses, which are internal risks. O+T are opportunities and threats which are external risks. See p. 12 for more information


Question No. 2

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?

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Correct Answer: D

As a consultant he will need Professional Indemnity insurance. This insurance is for roles that include providing advice, designs and services. Insurances comes up a bit in the exam so revise this from p.96-100


Question No. 3

A supplier of non-critical items has a low credit score, Which of the following actions should be taken? Select TWO options.

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Correct Answer: B, C

The correct answers are conduct benchmarking and create a risk assessment. This supplier provides low value and low risk products - therefore the fact they have a bad credit rating isn't too much of a risk to your company. It's worth doing a benchmarking exercise to compare their position to others in the market to see if there are any industry-wide trends, and to create a risk assessment and mitigation plan. This could involve working with the supplier to help them improve their credit score, for example by using more favourable payment terms so they have a better cash flow. There's no need to replace them immediately, and there's no need to tell the CEO- they probably have more important things to think about than a singular supplier of non-critical items See p.81


Question No. 4

What is the purpose of the Sarbanes-Oxley Regulation?

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Correct Answer: C

Sarbanes Oxley Regulations encourages transparency in financial reporting. The regulations came in response to the Enron scandal in 2001 when Enron bosses were falsifying financial records to make the company look better than it was, then the company went bust. The point of Sarbanes Oxley is to ensure that this doesn't happen again- that business leaders report correct financial statements to shareholders. The study guide talks about this on p.42 but I'd recommend also watching this video as it gives a good background to the regulation: https://www.investopedia.com/terms/s/sarbanesoxleyact.asp


Question No. 5

The triple bottom line is a way to refer to sustainability practices. Which of the following is included within the Triple Bottom Line? 1. People, 2. Profit, 3. Price, 4. Planet 5. Power.

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Correct Answer: D

Triple Bottom Line - people, profit and planet - options 1, 2 and 4. See p.45 for more details on sustainability


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