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L5M2 PDF

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  • Questions: 120 Q&A's With Detailed Explanation
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  • Exam Name: Managing Supply Chain Risk
  • Last Update: 01-Nov-2024
  • Questions and Answers: 120
  • Single Choice: 101 Q&A's
  • Multiple Choice: 19 Q&A's

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L5M2 Questions and Answers

Question # 1

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.

hedge

Question # 2

In an organisation, who is responsible for creating a risk assessment register?

A.

the CEO

B.

Procurement Manager

C.

Risk Manager / H+S Manager

D.

Cross-Functional Team

Question # 3

A large multi-national corporation has just been awarded a credit rating of C by the three main credit rating agencies. What does this score signify?

A.

low risk

B.

average risk

C.

substantial risk

D.

in default

Question # 4

An interconnected supply chain would have what affect on the creation of a risk register?

A.

risks will be larger

B.

risks will sit with the procurement team

C.

actions to mitigate one risk, may create a new risk

D.

actions to mitigate risks will require a cross-functional team

Question # 5

Which of the following is an example of force majeure?

A.

The supplier delivers materials late due to a breakdown

B.

The supplier asks for an uplift in prices

C.

The supplier is under criminal investigation for fraud

D.

The supplier's factory is hit by a hurricane

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