Question 1

Which of the following are potential consequences for an organisation which fails to identify and address risk? Select TWO

Options :

A : lawsuits

B : corruption

C :

damage to brand image

D : financial loss

Answer: C,D

Question 2

Joan is a Category Manager at a packaging plant in Birmingham, UK. Her company creates and supplies different forms of packaging to manufacturers in the food and retail sectors. She is creating a Profile of the Category she manages in order to identify the spend category. By obtaining data on her Category, which of the following will Joan be able to do?

Options :

A : Find alternative suppliers

B : Prepare projections and budgets for the future

C : Competitive Supplier Selection

D : Benchmarking

Answer: B

Question 3

What is contract leakage?

Options :

A : when spend with a supplier is more than was stated in the contract

B : when spend with a supplier is less than was forecast

C : the gap between proposed KPI levels and those actually achieved by the supplier over the course of a contract

D : the gap between benefits identified in the pre-award stage of the contract and those actually achieved

Answer: D

Question 4

Which of the following will you put into box 6?

Options :

A : Profitability Concern

B : Liquidity Concern

C :

Gearing Concern

D : Efficiency Concern

Answer: C

Question 5

Which of the following approaches to cost is the least transparent?

Options :

A : price management

B : price acceptance

C :

cost down

D : cost out

Answer: B

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