Question 1

2021-07-23-19-21-32-e2efebc73ed7d3407c3ab0a1142d7f4e

Which of the following will you put into box 7?

Options :

A : service credits

B : NDA

C : Conformance Specification

D : Force Majeure

Answer: C

Question 2

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

Which of the following will you put into box 4?

Options :

A :

hazard

B : financial

C : strategic

D : operational

Answer: B

Question 3

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?

Options :

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

B : yes- this reduces the risk to 0

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

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

Answer: C

Question 4

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

Options :

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 impact

Answer: B

Question 5

Yusef is a new procurement manager at FRD Incorporated. He is looking through the Risk Assessments for his department and notices that the cause of the risk is not identified. Why might this be?

Options :

A : this is a mistake - all risk assessments should specify the cause of the risk. He should raise this with his manager

B : the organisation has a high risk appetite

C : the organisation has not recorded cause for cultural reasons

D : the organisation has completed the risk assessments incorrectly

Answer: C

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