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CIPS Managing Supply Chain Risk Sample Questions (Q97-Q102):

NEW QUESTION # 97

Which of the following insurances would provide cover in the eventuality that your supplier's place of business flooded and this affected your deliveries?

A. contingent business interruption insurance
B. public liability insurance
C. property insurance
D. business interruption insurance

Answer: A

Explanation:

Explanation

This is 'contingent business interruption' insurance. This protects you if anything were to happen to your suppliers' premises. Business Interruption Insurance would cover you if something were to happen to your premises. See p.99

NEW QUESTION # 98

Which of the following will you put into box 7?

A. outsource
B. forward contract
C. new technology
D. insurance

Answer: A

Explanation:

Explanation

Table Description automatically generated

NEW QUESTION # 99

Which of the following are key areas of ISO 26000 Social Responsibility? Select THREE.

A. organisational governance
B. human rights
C. efficient systems
D. consumer issues
E. quality management

Answer: A,B,D

Explanation:

Explanation

1 3 and 4 are the correct answers. There are 7 key areas that ISO 26000 focuses on. As well as these three, there is also labour practices, the environment, fair operating practices and community involvement. See p. 51 of the study guide. ISOs are a popular exam topic so do revise these before the exam.

NEW QUESTION # 100

Which of the following statements is true about a Disaster Recovery Plan? Select TWO

A. it can be structured using a standardised framework
B. the focus is to return a company to making a profit after a disaster
C. it contains more detail than a business continuity plan
D. it is held at the top level

Answer: A,C

Explanation:

Explanation

Answers 2 and 4 are correct. A Business Continuity Plan is held at the top level, not a disaster recovery plan.

This can be held at the department level- or whoever would have the ability to enact this if a disaster were to happen. A company is likely to have several Disaster Recovery Plans for different departments and different scenarios so several people within the organisation may be accountable for these. Option 3 is incorrect as the focus is on recovering systems (e.g. getting people back online) not on profit. P.155

NEW QUESTION # 101

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

A. Procurement Manager
B. the CEO
C. Risk Manager / H+S Manager
D. Cross-Functional Team

Answer: D

Explanation:

Explanation

A Cross Functional Team should create a risk register. It shouldn't be the responsibility of one person to do this- more points of view will lead to more risks being identified. Accountability for the Risk Register may however sit with the CEO or a Department Manager. This is explained on p. 132

NEW QUESTION # 102

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