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CIPS Managing Supply Chain Risk Sample Questions (Q37-Q42):

NEW QUESTION # 37
Which of the following will you put into box 7?

• A. audit
• B. dual sourcing
• C. insurance
• D. monitor

Answer: C

Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated with low confidence

NEW QUESTION # 38
Which of the following risks is associated with sourcing from low-cost countries? Select TWO:

• A. reputational risks
• B. operational risks
• C. geopolitical risks
• D. financial risks

Answer: A,C

Explanation:
Explanation
The correct answers are reputational risks and geopolitical risks. This is according to p. 77 of the study guide.
Although I personally feel this is a bit presumptive, painting all 'low-cost' countries with the same brush (are all 'low-cost countries' politically unstable and allow dodgy things that will affect your reputation?, this is what the textbook says ...

NEW QUESTION # 39
A large multi-national corporation has just been awarded a credit rating of C by the three main credit rating agencies. What does this score signify?

• A. in default
• B. low risk
• C. substantial risk
• D. average risk

Answer: C

Explanation:
Explanation
a C grade = substantial risk. This is based on the grading system of AAA-D and is explained on p. 80.
basically anything that isn't an A is bad.

NEW QUESTION # 40
Which of the following will you put into box 1?

• A. intellectual property
  (Correct)
• B. operational
• C. strategic
• D. environment

Answer: A

Explanation:
Explanation
The correct answers are as follows:
Table Description automatically generated

NEW QUESTION # 41
Which of the following statements is true about ISO9001? Select TWO.

• A. It complements ISO 20400
• B. it encourages businesses to see quality from the viewpoint of the customer
• C. it is based on the principle of continuous improvement
• D. it helps businesses to identify areas of potential risk and mitigate these accordingly
• E. it aims to ensure sustainability within the supply chain

Answer: B,C

Explanation:
Explanation
ISO 9001 is Quality Management- answers 1 and 2 are correct. ISOs are a popular topic on this exam so be sure to revise them - and not only what the names of them are, but also the principles behind each ISO. ISO
9001 is discussed on p. 25 of the CIPS study guide.

NEW QUESTION # 42
......

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