Free CIPS L5M2 Exam Questions

Become CIPS Certified with updated L5M2 exam questions and correct answers

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Total 122 Questions | Updated On: Jan 09, 2025

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Question 1

An indemnity clause should contain which of the following pieces of information 1) duties of both parties 2) a monetary limit 3) insurance levels 4) details of the breach 5) a time limit

A : 1,2,5

B : 1,3,4

C : 2,4,5

D : 3,4,5

Answer: A

Question 2

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 : is is a mistake - all risk assessments should specify the cause of the risk. He should raise this with his manager

B : organisation has a high risk appetite

C : organisation has not recorded cause for cultural reasons

D : organisation has completed the risk assessments incorrectly

Answer: C

Question 3

Robot Ltd manufactures high end robots. A lot of value is tied up in the stock that it holds within its warehouse as each robot is worth several thousand pounds. The company has decided to enlist the services of a third party provider for disaster recovery, to help them shape a plan for if something were to happen to the stock, such as a flood. Is this the correct thing for Robot Ltd to do?

A : - a 3rd party can provide broader experience and expertise

B : - a third party is a cheap option for disaster recovery planning

C : - Robot Ltd should create a cross-functional team to draw up the plan as internal stakeholders will understand the risks better than a 3rd party

D : - a 3rd party can only help in the solution stage of disaster recovery, not the planning stage

Answer: A

Question 4

What is the final stage of Deming's Plan - Do - Check cycle which is encouraged by ISO9001?

A : prove

B : view

C : t

D : ess

Answer: C

Question 5

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 hedging and that they should look at price fixing. is this correct?

A : - hedging is the only solution to mitigate the risk of adverse price movements

B : - this reduces the risk to 0

C : - Leo LLP could do nothing and increase its prices instead

D : - Leo LLP can take out insurance to mitigate this risk

Answer: C

Page: 1 / 25

Total 122 Questions | Updated On: Jan 09, 2025

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