Free Managing Supply Chain Risk Exam L5M2 Exam Practice Test

Which of the following stages would come first within a risk assessment?

• evaluate risk
• treat risk
• monitor risk
• analyse risk

ISO 31000 is built on 11 guiding principles. Identify THREE of these.

• Risk management can create value
• Risk Management should take into account company culture
• Risk Management should address uncertainty faced by the organisation
• Risk Management should be done annually
• Risk Management should include only the Departments affected by risk

An indemnity clause should contain which of the following pieces of information 1) duties of both parties 2) a monetary limit 3) insurance levels 4) details of the breach 5) a time limit

• 1,2,5
• 1,3,4
• 2,4,5
• 3,4,5

Neruda Incorporated is evaluating potential suppliers' financial standings as part of a tender. Which of the following companies is the most financially stable?

• Company A has a high gearing ratio, high liquidity and few fixed assets
• Company B has low liquidity, a high gearing ratio and increasing sales trends
• Company C has low liquidity, low gearing and increasing sales trend
• Company D has high liquidity, low gearing and lots of fixed assets

Which organisation created the Decent Work Agenda?

• UN
• ISO
• ILO
• ETI

Logistics Risks are caused by...

• heightened ethical standards
• customer expectations
• extended supply chains
• economic instability

Which of the following statements about FIDIC Contracts are true? Select TWO:

• They are used in the construction industry
• They are more collaborative than NEC contracts
• Each party manages their own risks separately
• Early warning notices are given when risks arise
• Change control is called a 'Compensation Event'

Which of the following are benefits of ISO28000? Select TWO.

• competitive advantage
• cost saving
• increased market share
• decreased legal costs

Kieran works in the manufacturing industry and his company have just implemented LEAN production processes. Will this increase or decrease the risks in relation to security of supply?

• increase security of supply risks as this is a tried and tested risk reducing process
• increase security of supply risks as there is less buffer stock held on site
• decrease security of supply risks as there will be increased efficiencies
• decrease security of supply risks as there is less buffer stock

SA 8000 is an alternative to which ISO?

• 9001
• 27000
• 310000
• 20400