Online Access Free L5M2 Exam Questions

Which of the following will you put into box 4?

• A.terminate
• B.tolerate
• C.treat
• D.transfer

Which of the following is a quantative method for completing a risk assessment and an alternative to using an impact scale?

• A.rating of 1-5
• B.monetary value
• C.impact analysis
• D.4 Ts

What is the purpose of an indemnity clause within a contract?

• A.to transfer risk from one party to another
• B.to assign risk to each party
• C.to ensure both parties are adequately insured if something were to go wrong
• D.to explain what would happen in the case of a force majeure

Khalid is a procurement manager who works at a manufacturing organisation based in the UK. The organisation creates building fabric materials by converting raw materials such as steal into useable items in the construction industry. Khalid sources most of his steal internationally due to competitive prices. On one occasion with his usual supplier, the ship that is carrying the materials sinks due to an unexpected storm.
Which clause would be activated within the contract?

• A.transportation clause
• B.liability clause
• C.breach of contract
• D.force majeure

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?

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