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: Mar 26, 2025

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Question 1

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

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

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 4

ISO 20400 represents what area of business?

A : ality Management

B : pply Chain Security

C : k Management

D : Sustainable Procurement

Answer: D

Question 5

Which of the following models would be used to explore internal and external risks to a business?

A : rter's 5 Forces

B : EEPLE

C : OT

D : isson Distribution

Answer: C

Page: 1 / 25

Total 122 Questions | Updated On: Mar 26, 2025

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