Good practice material does more than quiz you — it consolidates your IT knowledge into something usable. The L5M2 question bank at ValidVCE is built for exactly that, with expert-verified answers aligned to the CIPS Managing Supply Chain Risk blueprint.
CIPS L5M2 Exam Overview:
| Certification Vendor: | Chartered Institute of Procurement & Supply (CIPS) |
|---|---|
| Exam Name: | Managing Supply Chain Risk |
| Exam Number: | L5M2 |
| Passing Score: | 70% Objective Response |
| Related Certifications: | CIPS L5M3 Managing Contract Risk CIPS Level 5 Advanced Diploma in Procurement & Supply CIPS L5M1 Managing Teams & Individuals |
| Available Languages: | English |
| Exam Format: | Objective Response (OR) Questions |
| Real Exam Qty: | 46 |
| Exam Duration: | 90 minutes |
| Sample Questions: |  |
| Exam Way: | Computer-based Objective Response exam (OR) at global exam venues or remote proctoring |
| Pre Condition: | Completion of CIPS Level 4 Diploma in Procurement and Supply is required before progressing to Level 5 modules; membership of CIPS recommended |
| Official Syllabus URL: | https://www.cips.org/qualifications/advanced-diploma-in-procurement-supply/managing-supply-chain-risk |
CIPS L5M2 Exam Syllabus Topics:
| Section | Objectives |
|---|---|
| Topic 1: Understand the nature of risk affecting supply chains | - Define different types of risk impacting supply chains - Assess internal and external risk sources in supply chains |
| Topic 2: Understand processes in managing risk in supply chains | - Assess use of insurances and contingency plans - Examine use of contractual and third-party risk remedies |
| Topic 3: Understand risk mitigation strategies in supply chains | - Apply probability and impact assessment techniques - Analyse risk assessments and registers |
Planning Your CIPS Managing Supply Chain Risk? Start With These Answers
The current exam information lists 46 questions for the L5M2 exam, with 90 minutes minutes allowed. Practicing against the clock at home builds the pacing habits that exam day rewards.
The CIPS Managing Supply Chain Risk blueprint covers these main domains:
- Understand risk mitigation strategies in supply chains
- Understand processes in managing risk in supply chains
- Understand the nature of risk affecting supply chains
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CIPS lists the following prerequisites for the CIPS Managing Supply Chain Risk: Completion of CIPS Level 4 Diploma in Procurement and Supply is required before progressing to Level 5 modules; membership of CIPS recommended.
Check the official certification page for the latest requirements before booking.
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CIPS Managing Supply Chain Risk Sample Questions:
Which of the following is not a benefit of having a contingency plan?
- A. greater resilience to force majeure events
- B. competitive advantage
- C. increased profits
- D. increased staff morale
Correct Answer: C 🗳️
Explanation: Only visible for ValidVCE members. You can sign-up / login (it's free).
Maple Tree Limited is a Canadian company who has recently signed a new contract with a supplier who is based in China. Maple Tree Limited will be buying a raw material with a reputation for severe price fluctuations. Which of the following would help mitigate the risk that this poses? Select TWO options
- A. quote in the supplier's currency
- B. fix the exchange rate at the current rate
- C. use a forward exchange contract
- D. quote in the buyer's currency
Correct Answer: B,C 🗳️
Explanation: Only visible for ValidVCE members. You can sign-up / login (it's free).
John is a mid-level manager and has created a risk / reward matrix about four potential opportunities at his company White Ducky Limited. He will present his research to a board meeting next week. He has categorised the four opportunities as the following. Which of these opportunities should John recommend the board
'consider'? Select TWO.
- A. low risk/ low reward
- B. high risk/ high reward
- C. high risk/ low reward
- D. low risk / high reward
Correct Answer: A,B 🗳️
Explanation: Only visible for ValidVCE members. You can sign-up / login (it's free).
Petra Ltd is a manufacturer of upmarket baked goods and they have a range which is gluten free and therefore suitable for customers who have an intolerance of wheat. For this reason Petra Ltd is very strict about the ingredients that it sources. It's main supplier has provided written agreement that they will test all ingredients in their processing factory to ensure that they are suitable for the gluten free diet before delivery is made, and once delivery is made the materials will be deemed accepted by the buyer. Is Petra right to accept this arrangement?
- A. yes- this reduces the risk of unsuitable materials entering Petra's factory
- B. no - this arrangement is unacceptable and Petra should void the contract
- C. yes- this arrangement places the risk on the supplier rather than Petra
- D. no- Petra should arrange for additional tests to be conducted on the deliveries and only accept them once these tests have been completed
Correct Answer: D 🗳️
Explanation: Only visible for ValidVCE members. You can sign-up / login (it's free).
Kevin is a consultant who works for himself and is predominantly based at home, except for when he visits clients. He has recently taken on a role advising a client about the feasibility of building a new railway station in a village. Which of the following insurances would be vital for Kevin to take out?
- A. trade credit
- B. professional indemnity
- C. product liability
- D. public liability
Correct Answer: B 🗳️
Explanation: Only visible for ValidVCE members. You can sign-up / login (it's free).
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