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CIPS L4M2 Exam - Topic 3 Question 20 Discussion

Actual exam question for CIPS's L4M2 exam

Question #: 20
Topic #: 3

[All L4M2 Questions]

Which of the following is a risk to buying organization when using conformance specification?

ABuyer is responsible for product failure

BBuyer may face liquidity risks

CBuyer cannot control the inputs

DTime to produce specification is shortened

Show Suggested Answer

Suggested Answer: D

A business case is developed during the early stages of a project and outlines the why, what, how, and who necessary to decide if it is worthwhile continuing a project. One of the first things you need to know when starting a new project are the benefits of the proposed business change and how to communicate those benefits to the business.

Preparing the business case involves an assessment of:

- Business problem or opportunity

- Benefits

- Risk

- Costs including investment appraisal

- Technical solutions

- Timescale

- Impact on operations

- Organizational capability to deliver the project outcomes

These project issues are an important part of the business case. They express the problems with the current situation and demonstrate the benefits of the new business vision. Making business case with multiple options and choices also prompts the procurement and senior management to consider alternatives. As a result, the organisation may opt out the best option.

The business case brings together the benefits, disadvantages, costs, and risks of the current situa-tion and future vision so that executive management can decide if the project should go ahead.

- CIPS study guide page 19-21

- How to Write a Business Case - Template & Examples | Adobe Workfront

LO 1, AC 1.1

by Ammie at Aug 08, 2023, 06:15 AM

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Eleonore

9 months ago

I thought conformance specs were supposed to help with control, not the other way around!

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Thersa

10 months ago

I don't think B is really a risk, liquidity issues are more about cash flow.

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Elenora

10 months ago

Wait, how can D be a risk? Seems like a benefit to me.

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Annabelle

10 months ago

Totally agree, C is a big concern too!

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Joaquin

10 months ago

A is definitely a risk, buyer takes the hit for failures.

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Bette

11 months ago

The shortened time to produce specifications seems like it could be a benefit rather than a risk, but I’m not completely sure how that fits into the overall picture.

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Corinne

11 months ago

I feel like the inability to control inputs could definitely be a risk, especially since we talked about how that affects quality in similar practice questions.

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Janey

11 months ago

I remember discussing liquidity risks in class, but I’m not confident if that directly relates to conformance specifications.

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Sharmaine

11 months ago

I think the risk of the buyer being responsible for product failure sounds familiar, but I'm not entirely sure if that's the main issue with conformance specifications.

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Jaime

11 months ago

I'm pretty sure the answer is D. Secure authentication requires a user name and password to verify the user's identity, and encryption of the transmitted data is essential to protect that sensitive information. I feel confident about this one.

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Elin

11 months ago

I'm a little confused by the wording of this question. Let me re-read it and see if I can break down the key elements to figure out the right answer.

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Tresa

11 months ago

This question seems straightforward. I'll focus on gathering information about the company's web presence without causing too much disruption.

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Shaun

11 months ago

I think I remember something about how masses can support different structural elements, but I'm not completely sure if the answer is ceilings or floors.

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Christiane

1 year ago

Liquidity risks? With this economy? No thanks, I'll stick to option A - the buyer is responsible for product failure. At least that way I'll have a job next month.

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Hillary

1 year ago

Haha, just give me the answer key and I'll be good to go! Conformance specification? More like 'conform to my specifications or else!'

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Madalyn

1 year ago

C) Buyer cannot control the inputs

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Launa

1 year ago

B) Buyer may face liquidity risks

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Arthur

1 year ago

A) Buyer is responsible for product failure

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Larue

1 year ago

D seems like the best option to me. The time to produce the specification is shortened, which could lead to rushed and subpar products.

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Maxima

1 year ago

C) Buyer cannot control the inputs

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Annita

1 year ago

B) Buyer may face liquidity risks

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Nidia

1 year ago

A) Buyer is responsible for product failure

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Alyce

1 year ago

I think the correct answer is C. The buyer cannot control the inputs, which can be a major risk when using conformance specification.

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Joni

1 year ago

Yes, it can lead to potential issues with the quality of the final product.

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Hubert

1 year ago

I agree, not being able to control the inputs can definitely be a risk.

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Alexis

1 year ago

But what about liquidity risks? Could that also be a concern?

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Ardella

1 year ago

I agree with Natalie, it's a big risk for the buying organization.

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Natalie

1 year ago

I think the risk is that buyer is responsible for product failure.

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