CIPS L5M2 Exam - Topic 1 Question 52 Discussion

Actual exam question for CIPS's L5M2 exam

Question #: 52
Topic #: 1

[All L5M2 Questions]

Which of the following risks is associated with sourcing from low-cost countries? Select TWO:

Aoperational risks

Breputational risks

Cgeopolitical risks

Dfinancial risks

Show Suggested Answer

Suggested Answer: D

A black swan event is an unusual occurrence - something that is rare. See p.124

by Nu at Feb 11, 2025, 10:48 AM

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Santos

7 months ago

Really? I thought low costs meant lower risks overall.

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Carolynn

8 months ago

Financial risks are also a concern, for sure.

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Solange

8 months ago

Geopolitical risks? Not sure about that one.

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Eun

8 months ago

I agree, reputational risks are a big deal too.

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Jolanda

8 months ago

Definitely operational risks.

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Val

9 months ago

I feel like financial risks might not be as prominent, but I could be mixing it up with other practice questions we did.

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Arleen

9 months ago

Geopolitical risks seem relevant too, especially with current events affecting trade agreements.

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Leah

9 months ago

I'm not entirely sure, but I think reputational risks could be a concern if the sourcing practices are unethical.

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Karima

9 months ago

I remember we discussed operational risks in class, especially how they can arise from supply chain disruptions.

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Keith

9 months ago

I've got a good strategy for this - I'll eliminate the options that don't seem as relevant and then choose the two that fit best.

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Herman

9 months ago

I'm a bit confused by the wording of the question. I'll need to re-read it a few times to make sure I understand.

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Slyvia

9 months ago

Okay, let's see. Operational and reputational risks seem like the obvious choices here.

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Coleen

9 months ago

Hmm, I'm not too sure about this one. I'll have to think it through carefully.

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Margarett

9 months ago

This question seems straightforward, I think I can handle it.

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Kristal

1 year ago

I'm just going to go with the safe options, A and B. Gotta play it smart, you know? No need to tempt fate with those other risky choices.

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Refugia

1 year ago

User 4: Really? I prefer to play it safe like Erinn, A and B for me.

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Tuyet

1 year ago

User 3: I think I'll go with C and D, I like to take some risks.

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Erinn

1 year ago

User 2: Yeah, operational and reputational risks are definitely important to consider.

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Ronny

1 year ago

User 1: I agree, A and B seem like the safer choices.

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Almeta

1 year ago

User 2: Yeah, operational and reputational risks are definitely important to consider.

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Samuel

1 year ago

User 1: I agree, A and B seem like the safer choices.

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Apolonia

1 year ago

Financial risks? Well, duh! If your suppliers go belly-up, your entire operation goes down the drain. It's a high-stakes game, alright.

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My

1 year ago

I believe financial risks should also be considered. It's important to ensure the financial stability of the suppliers in low-cost countries.

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Moon

1 year ago

Geopolitical risks? That's a nice way of saying 'your factory might get invaded by a rogue nation'. Keeping an eye on the news is a must these days.

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Delbert

1 year ago

B) reputational risks

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Jacquelyne

1 year ago

I never thought about that, but it makes sense.

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Delisa

1 year ago

C) geopolitical risks

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Jerry

1 year ago

A) operational risks

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Myra

1 year ago

Operational risks and reputational risks? Sounds like a recipe for a global supply chain disaster! Buckle up, folks, it's going to be a wild ride!

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Derick

1 year ago

I agree with Lai. Operational and geopolitical risks are definitely concerns when sourcing from low-cost countries.

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Lai

1 year ago

I think A and C are the risks associated with sourcing from low-cost countries.

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