L5M2

Risk should be a 'golden thread' that links all of the organisation's strategies, communications, policies and training. The LILAC model describes how a risk-aware culture can be created. Which of the following form part of the LILAC model?A . Leadership and Learning B. Investment and Accountability C. Appraisal and Communication...

Which of the following will you put into box 8?A . new technology B. forward contract C. outsource D. insuranceView AnswerAnswer: B Explanation: Table Description automatically generated A forward contract would fix the exchange rate at a certain level, allowing for cost certainty. This mitigates the risk of the currency...

Chloe is a procurement manager at Ruby Company. She has been asked to join a cross-functional team to review the company's risk appetite, potential risks within the supply chain and brainstorm mitigating actions. Chloe has suggested that the cross-functional team should first draw up a list of potential supply chain...

Zara is a procurement manager who is thinking about working with a new supplier to source buttons for her clothes manufacturing business. Her manager has asked her to do some due diligence on the supplier's financial stability. What should she do?A . use an outsourced third-party credit rating agency B....

Which of the following FIDIC Contracts would be suitable for a contract for offshore wind projects?A . Construction Contract B. Measured Term Contract C. Minor Works Contract D. Yellow Book ContractView AnswerAnswer: D Explanation: This is the Yellow Book. This is briefly mentioned on p.74 and can often be missed...

Which of the following statements are true about risk management? Select TWO.A . the goal of risk management is to reduce risks to 0 B. risk management is a continuous process C. risk management is an activity that is conducted by a business once a year D. risk management can...

In probability theory, the chances of a coin landing on heads would be expressed in what way?A . 50% B. one half C. 0.5 D. 50-50View AnswerAnswer: C Explanation:

A financial instrument used by airlines to fix the price of fuel over a period of time is known commonly as a what?A . commodity B. swap C. exchange D. hedgeView AnswerAnswer: B Explanation: This is a 'swap' and is explained on p.94. This is a type of 'hedging' but...

Which of the following risks would likely be tolerated by a company?A . no risks should be tolerated B. opportunities which are low risk and low impact C. opportunities which are low risk and high impact D. opportunities which are high risk and low impactView AnswerAnswer: B Explanation: Low risk...

What is ISO28000?A . Risk Management B. Supply Chain Security C. Quality Management D. Sustainable ProcurementView AnswerAnswer: B Explanation: ISO 28000 is Supply Chain Security Management. This is a known topic for the exam. Learn more about ISOs on p. 141