CIPS Exam L5M2 Topic 1 Question 55 Discussion

Actual exam question for CIPS's L5M2 exam

Question #: 55
Topic #: 1

[All L5M2 Questions]

Which of the following statements are true about risk management? Select TWO.

Athe goal of risk management is to reduce risks to 0

Brisk management is a continuous process

Crisk management is an activity that is conducted by a business once a year

Drisk management can help companies ensure the smooth and successful running of purchase and supply operations

Erisk management is the process by which all risks are either treated or transferred

Show Suggested Answer

Suggested Answer: B, D

The correct responses are 2 and 4: risk management is a continual process and helps companies ensure the smooth and successful running of P+S. These are direct quotes from p.3 of the study guide. The other answers are wrong- if risk management is a continuous process it's not something that is done once a year- so this option is automatically discounted. Option 1 is also wrong as you can never reduce all risks to 0, and option 5 is also wrong- risks can be treated and transferred, but they can also be tolerated and terminated.

by Pamela at Apr 07, 2025, 06:12 AM

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Jaleesa

3 months ago

I'll go with B and D. Risk management is a continuous process that helps ensure the smooth running of business operations. Anyone who thinks it's a once-a-year thing needs to rethink their approach.

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Arminda

2 months ago

It's crucial for companies to prioritize risk management for smooth operations.

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Ressie

2 months ago

I think B and D are the most important aspects of risk management.

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Jarvis

2 months ago

Definitely, it's important to constantly assess and address risks.

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Wai

3 months ago

I agree, risk management should be continuous to ensure success.

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Thersa

4 months ago

Haha, reducing risks to 0? That's like trying to eliminate all uncertainty in life. Risk management is about managing risks, not eliminating them completely. B and E are the way to go.

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Dell

2 months ago

Definitely, treating or transferring risks is a key part of risk management to ensure smooth operations.

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Chauncey

2 months ago

I agree, risk management is an ongoing process that helps businesses navigate uncertainties.

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Tommy

2 months ago

Exactly, you can never completely eliminate risks. It's all about managing and minimizing them.

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Twana

4 months ago

I think B and D are the correct answers. Risk management is an ongoing process, not a one-time activity, and it can definitely help with supply chain operations.

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