CIPS L5M2 Actual Free Exam Questions & Community Discussion

Exam Code/Number: L5M2
Exam Name/Title: Managing Supply Chain Risk
Certification Provider: CIPS
Corresponding Certification: CIPS Level 5 Advanced Diploma in Procurement and Supply

Exam Questions: 117
Updated On: Jul 07, 2026

Question #41

Which organisation created the Decent Work Agenda?

A. UN

B. ISO

C. ETI

D. ILO

Discussion 0

Correct Answer: D Vote an answer

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Question #42

Dave is a procurement manager for a chocolate factory who is running a tender to source cocoa from a new supplier. The tender is a huge opportunity for suppliers and the contract would be worth millions of pounds.
Dave has passed some information about the tender to one of the bidders in exchange for a free holiday to Barbados. Which of the following types of fraud has Dave committed?

A. counterfeiting

B. bribery

C. holiday fraud

D. accepting a kick-back

Discussion 0

Correct Answer: B Vote an answer

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Question #43

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. no- Leo LLP can take out insurance to mitigate this risk

B. yes- hedging is the only solution to mitigate the risk of adverse price movements

C. no- Leo LLP could do nothing and increase its prices instead

D. yes- this reduces the risk to 0

Discussion 0

Correct Answer: C Vote an answer

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Question #44

A black swan event is what type of occurrence?

A. an occurrence with a negative outcome

B. an unusual occurrence

C. a common occurrence

D. an occurrence with a good outcome

Discussion 0

Correct Answer: B Vote an answer

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Question #45

Which of the following is an example of force majeure?

A. The supplier's factory is hit by a hurricane

B. The supplier asks for an uplift in prices

C. The supplier delivers materials late due to a breakdown

D. The supplier is under criminal investigation for fraud

Discussion 0

Correct Answer: A Vote an answer

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Question #46

Which of the following will you put into box 4?

A. terminate

B. transfer

C. tolerate

D. treat

Discussion 0

Correct Answer: A Vote an answer

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Question #47

What is the purpose of a Disaster Recovery Plan?

A. to increase output to normal levels following a disaster

B. to return to business as usual

C. to detect and react to an emergency situation, focusing on people's safety

D. to get critical systems operational

Discussion 0

Correct Answer: D Vote an answer

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Question #48

Which of the following FIDIC Contracts would be suitable for a contract for offshore wind projects?

A. Minor Works Contract

B. Construction Contract

C. Yellow Book Contract

D. Measured Term Contract

Discussion 0

Correct Answer: C Vote an answer

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Question #49

Company X is a large company which is traded on the UK stock exchange. According to the Companies (Miscellaneous Reporting) Regulations 2018- is it obligatory for Company X to follow a Corporate Governance Code?

A. yes- all companies in the UK must follow this

B. no- but if it doesn't follow a Corporate Governance Code it must explain the reasons why not

C. yes- all companies trading on the stock exchange must do this

D. no- corporate governance codes are not mandatory

Discussion 0

Correct Answer: B Vote an answer

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Question #50

What would happen if a company enacts its Contingency Agreement following a natural disaster?

A. they will receive a financial pay-out

B. they will receive operational help from a third party

C. they will be able to claim on insurance

D. they will be able to breach any contracts that it has

Discussion 0

Correct Answer: B Vote an answer

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