L5M2 Practice Online

Question 1

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 : - hedging is the only solution to mitigate the risk of adverse price movements

B : - this reduces the risk to 0

C : - Leo LLP could do nothing and increase its prices instead

D : - Leo LLP can take out insurance to mitigate this risk

Answer: C

Question 2

In which of the following industries is it common to find dedicated resource for risk management?

A : nking and insurance

B : riculture

C : nufacturing

D : public sector

Answer: A

Question 3

Which of the following risks would likely be tolerated by a company?

A :

no risks should be tolerated

B : portunities which are low risk and low impact

C : portunities which are low risk and high impact

D : portunities which are high risk and low impact

Answer: B

Question 4

2021-07-23-19-56-44-05fa1d78ad7a1743f61eeeab62b1a8ba

Which of the following will you put into box 8?

A : dit

B : nitor

C : urance

D : al sourcing

Answer: A

Question 5

2021-07-23-18-48-15-361d6c186f2b89c0ea2ea8615b7eb3c7

Which of the following will you put into box 5?

A : w technology

B : rward contract

C : tsource

D : urance

Answer: A

Name:	CORE Level 5 Managing Supply Chain Risk
Exam Code:	L5M2
Certification:	Level 5 Advanced Diploma in Procurement and Supply
Vendor:	CIPS
Total Questions:	122
Last Updated:	Nov 06, 2025

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