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CIPS L5M2 Exam With Confidence Using Practice Dumps

Exam Code:
L5M2
Exam Name:
Managing Supply Chain Risk
Vendor:
Questions:
120
Last Updated:
Apr 18, 2026
Exam Status:
Stable
CIPS L5M2

L5M2: CIPS Level 5 Advanced Diploma in Procurement and Supply Exam 2025 Study Guide Pdf and Test Engine

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Managing Supply Chain Risk Questions and Answers

Question 1

Which of the following statements about binomial distribution are true? Select THREE

Options:

A.

there are only two outcomes

B.

they are based on continuous events

C.

there is only one outcome per event

D.

each trial has the same probability

E.

the events of one trial will impact on the next one

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Question 2

Portobello is an Italian manufacturing company that produces canned tomato sauces. It imports a lot of its tomatoes from Latin America as there isn't the capacity to grow that many tomatoes in Italy. One of the major risks posing Portobello is that the tomatoes must be transported via cargo ship, and there is a risk that the ship may sink, or be delayed by bad weather. Portobello has taken out insurance to cover the cost of the tomatoes should this happen. What technique has Portobello used?

Options:

A.

tolerate

B.

treat

C.

transfer

D.

terminate

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?

Options:

A.

yes- a 3rd party can provide broader experience and expertise

B.

yes- a third party is a cheap option for disaster recovery planning

C.

no- 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.

no - a 3rd party can only help in the solution stage of disaster recovery, not the planning stage