Free CIPS L5M2 Exam Actual Questions

The questions for L5M2 were last updated On Apr 25, 2025

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Question No. 1

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

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Correct Answer: B

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


Question No. 2

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.

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Correct Answer: B, C

High risk/ high reward, and low risk/ low reward are the options that should be CONSIDERED. This is according to the risk/ reward matrix on p. 6. Items that are low risk/ high reward should be PROGRESSED and items which are high risk / low reward should be AVOIDED.


Question No. 3

Which of the following risks would likely be tolerated by a company?

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Correct Answer: B

Low risk and low impact should be tolerated. This is from the Probability and Impact Matric from p.122. The other two options should be either transferred or treated.


Question No. 4

Which of the following will you put into box 1?

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Correct Answer: B

The correct answers are as follows:


Question No. 5

Which of the following will you put into box 7?

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Correct Answer: C