CIPS L5M2 Exam - 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, 05:12 AM

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Salome

5 months ago

Totally agree, it helps keep operations running smoothly.

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Kaitlyn

5 months ago

I disagree, it can't be reduced to 0.

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Refugia

5 months ago

Surprised to see people think it's done just once a year!

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Octavio

6 months ago

Not sure about that last one, sounds too simplistic.

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Oren

6 months ago

Risk management is definitely a continuous process!

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Leontine

6 months ago

I’m leaning towards D being true since it makes sense that risk management would help with smooth operations, but I’m not confident about E.

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Dorian

6 months ago

I feel like I’ve seen questions before that say risk management is done annually, but that seems too limiting.

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Elza

6 months ago

I remember that risk management is supposed to be a continuous process, so I think option B is definitely true.

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Peter

7 months ago

I think the goal of risk management isn't to reduce risks to 0, but I’m not completely sure about that.

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Cordell

7 months ago

I remember discussing risk management in class. I think the key is to identify, assess, and then either treat or transfer the risks. Let me re-read the options and see which ones fit that approach.

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Shelba

7 months ago

Okay, I've got this. Risk management is an ongoing process, not a one-time activity. And it's about managing risks, not just eliminating them. I'll select the two options that best capture those ideas.

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Terrilyn

7 months ago

Hmm, I'm a bit unsure about this one. The goal of risk management isn't necessarily to reduce risks to 0, is it? I'll have to think this through more carefully.

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Felix

7 months ago

This seems like a straightforward question on risk management. I'll carefully read through the options and think about which ones best describe the key principles of risk management.

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Jaleesa

12 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

10 months ago

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

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Ressie

11 months ago

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

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Jarvis

11 months ago

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

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Wai

11 months ago

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

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Thersa

1 year 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

11 months ago

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

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Chauncey

11 months ago

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

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Tommy

11 months ago

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

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Twana

1 year 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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