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CIPS L4M6 Exam - Topic 8 Question 35 Discussion

Philip is working with a supplier where the annual spend is low but the market risk is high. What portfolio analysis category would be appropriate?
B) Leverage
A) Strategic
C) Non-critical
D) Bottleneck

CIPS L4M6 Exam - Topic 8 Question 35 Discussion

Actual exam question for CIPS's L4M6 exam
Question #: 35
Topic #: 8
[All L4M6 Questions]

Philip is working with a supplier where the annual spend is low but the market risk is high. What portfolio analysis category would be appropriate?

Show Suggested Answer Hide Answer
Suggested Answer: B

The correct answer is 'Conduct regular audits'. This is explained on p.153. You wouldn't do an appraisal on a supplier in a partnership relationship as both parties are equal. Threatening a partner isn't good for the relationship and a damages clause would be used in a contractual relationship rather than a partnership.


by France at Mar 17, 2024, 09:22 PM

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Ludivina
9 months ago
I agree, Bottleneck makes the most sense here.
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Denae
9 months ago
Wait, are we sure it’s not Strategic? Seems risky!
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Dahlia
10 months ago
Definitely a Leverage category, low spend but high risk!
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Buck
10 months ago
I think it’s more of a Non-critical situation.
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Leonor
10 months ago
Sounds like a Bottleneck category to me!
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Karan
10 months ago
I keep thinking about the Strategic category, but it seems more suited for high spend and high risk. This is tricky!
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Sonia
11 months ago
I practiced a question like this, and I feel like Non-critical might fit, but the high market risk makes me doubt that.
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Evangelina
11 months ago
I'm not entirely sure, but I remember something about Leverage being for high spend and low risk. So maybe that's not it?
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Zack
11 months ago
I think this might be a Bottleneck category because even though the spend is low, the market risk is high, which could create issues.
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Johnetta
11 months ago
Hmm, I'm a bit confused on this one. The low annual spend makes me think Non-critical, but the high market risk is throwing me off. I'll have to review the portfolio analysis criteria again to make sure I'm understanding the differences between the categories.
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Lezlie
11 months ago
Okay, let's think this through. If the annual spend is low, that rules out Strategic. And since the market risk is high, Leverage or Non-critical don't seem quite right. I'm leaning towards Bottleneck, but I'll double-check my notes to be sure.
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Truman
11 months ago
Hmm, this one's tricky. The annual spend is low, but the market risk is high. I'm thinking it might be a Bottleneck category, but I'm not 100% sure.
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Rashad
11 months ago
Alright, I've got this. With low annual spend but high market risk, the appropriate portfolio analysis category would be Bottleneck. Gotta focus on managing that risk and ensuring supply continuity.
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Sylvia
11 months ago
Hmm, I'm a bit confused by this question. I know we covered the dw.svc.Service class in class, but I can't quite remember the specific callback methods and when they're required. I'll have to think this through carefully.
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Dorthy
11 months ago
I'm a bit confused by this question. The options all seem relevant to managing change resistance, but I'm not entirely sure which one is the "except" case. I'll have to carefully review the Lewin model to make sure I understand it fully before answering.
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Francine
1 year ago
D) Bottleneck, all the way. I mean, who doesn't love a good bottleneck? It's like the traffic jam of the procurement world.
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Desmond
1 year ago
User 3: Bottleneck it is then. Let's focus on managing that market risk efficiently.
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Marget
1 year ago
User 2: I agree, a bottleneck strategy would be perfect for this situation.
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Joana
1 year ago
User 1: Bottleneck, definitely. It's the best way to manage high market risk with low spend.
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Tommy
1 year ago
Hmm, low spend but high market risk? Sounds like a job for the Leverage category to me. Gotta play those angles, right?
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Paola
1 year ago
Yeah, playing the leverage category could help maximize the benefits while minimizing the risks.
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Man
1 year ago
Strategic might be too risky for low spend, so leverage seems like the best option.
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Lavera
1 year ago
I agree, leveraging the situation could help mitigate the market risk.
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Latia
1 year ago
I'd go with D) Bottleneck. Gotta keep a tight grip on those high-risk suppliers, you know?
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Helene
1 year ago
Maybe we should consider both A) Strategic and D) Bottleneck for a balanced approach.
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Vilma
1 year ago
I see your point, but I still think D) Bottleneck is the way to go.
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Craig
1 year ago
I think A) Strategic might be a better choice in this situation.
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Julian
1 year ago
I'd go with D) Bottleneck. Gotta keep a tight grip on those high-risk suppliers, you know?
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Eve
1 year ago
Low spend but high market risk? That's a classic Bottleneck scenario if I ever saw one!
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Simona
1 year ago
Why do you think it should be Leverage?
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Jeniffer
1 year ago
I disagree, I believe it should be Leverage.
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Simona
1 year ago
I think the appropriate category would be Strategic.
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