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CIPS Exam L5M2 Topic 2 Question 51 Discussion

Actual exam question for CIPS's L5M2 exam
Question #: 51
Topic #: 2
[All L5M2 Questions]

Portobello is an Italian manufacturing company that produces canned tomato sauces. It imports a lot of its tomatoes from Latin America as there isn't the capacity to grow that many tomatoes in Italy. One of the major risks posing Portobello is that the tomatoes must be transported via cargo ship, and there is a risk that the ship may sink, or be delayed by bad weather. Portobello has taken out insurance to cover the cost of the tomatoes should this happen. What technique has Portobello used?

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Suggested Answer: A

The correct answers are as follows:

CSR= Corporate Social Responsibility


Contribute your Thoughts:

Carmen
4 days ago
I agree, transferring the risk is the way to go. Paying for insurance is better than eating the cost of the tomatoes yourself.
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Myra
6 days ago
Transfer seems like the obvious choice here. Portobello is transferring the risk of the tomatoes being lost or delayed to an insurance company.
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Alishia
6 days ago
I agree with Eugene, Portobello has transferred the risk by taking out insurance.
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Eugene
7 days ago
I think the technique used is transfer.
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