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NEW QUESTION 21
Which of the following is an International Standard for Risk Management?

• A. ISO 22301
• B. ISO31000
• C. ISO28000
• D. ISO 27000

Answer: B

Explanation:
Explanation
Risk Management = ISO31000. Learn the ISOs for the exam as it's a popular exam topic. 31000 is explained on p. 140. As well as the numbers, you should also learn the guiding principles of each ISO for the exam.

NEW QUESTION 22
Oliver is a procurement manager and he is trying to work out the likelihood that a supplier fails to deliver to the warehouse two days in a row. Which of the following methodologies should Oliver use?

• A. Poisson Distribution
• B. normal distribution
• C. binomial distribution
• D. value at risk

Answer: A

Explanation:
Explanation
Poisson Distribution would be used for this. Poisson Distribution predicts the likelihood of an event occurring.
This is explained on p. 129 of the study guide but this YouTube video explains it a lot better:
https://www.youtube.com/watch?v=zA7fp2s7FlM

NEW QUESTION 23
What is the purpose of the Sarbanes-Oxley Regulation?

• A. to encourage transparency in financial reporting
• B. to ensure high levels of ethical practice with regards to working conditions
• C. to protect the environment
• D. to ensure that products that reach the market are fit for purpose

Answer: A

Explanation:
Explanation
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

NEW QUESTION 24
What is the final stage of Deming's Plan - Do - Check cycle which is encouraged by ISO9001?

• A. Assess
• B. Improve
• C. Act
• D. Review

Answer: C

Explanation:
Explanation
Act is the final stage. See p.25 for a diagram of the cycle.

NEW QUESTION 25
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