CIPS L5M2 Exam - Topic 4 Question 66 Discussion

Actual exam question for CIPS's L5M2 exam

Question #: 66
Topic #: 4

[All L5M2 Questions]

Which of the following models would be used to explore internal and external risks to a business?

CSWOT

APorter's 5 Forces

DPoisson Distribution

BSTEEPLE

Show Suggested Answer

Suggested Answer: C

SWOT is used for this. S + W is strengths and weaknesses, which are internal risks. O+T are opportunities and threats which are external risks. See p. 12 for more information

by Millie at Jan 25, 2026, 03:44 AM

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Flo

2 months ago

True, but PESTLE doesn't address internal risks. SWOT is more comprehensive overall.

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Stephaine

2 months ago

What about PESTLE? It focuses on external risks like political and economic factors.

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Evette

2 months ago

Agreed, SWOT is great for that. Helps identify strengths and weaknesses.

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Johnson

4 months ago

I think it's the SWOT analysis. It covers both internal and external factors.

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Otis

4 months ago

You can use both models together for a comprehensive view!

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Nana

4 months ago

Really? I’m not sure SWOT is enough for complex risks.

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Felicia

4 months ago

I thought PESTLE was more for external risks?

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Stephanie

5 months ago

Totally agree, SWOT covers both internal and external risks.

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Teri

5 months ago

SWOT analysis is a good choice for that!

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Daren

5 months ago

Haha, I bet the answer is "All of the above" - they love tricking us with those!

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Jamika

5 months ago

Isn't the Failure Mode and Effects Analysis (FMEA) model the one we're looking for?

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Natalie

5 months ago

Hmm, I'd say the Bow-Tie analysis model is the best fit.

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Marshall

5 months ago

I think the Enterprise Risk Management (ERM) framework is the way to go.

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Vivan

6 months ago

The SWOT analysis model would be perfect for this.

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Lorriane

6 months ago

I think the COSO framework might be relevant here, as it addresses risk management comprehensively, but I need to double-check its application to both internal and external risks.

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Geraldo

7 months ago

I feel like we covered the Risk Management Framework, but I can't recall if it was specifically for internal and external risks or just one of them.

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Yvonne

7 months ago

I remember practicing with the PESTLE analysis, which focuses on external factors, but I’m not clear on how it fits with internal risks.

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Howard

7 months ago

I think we talked about the SWOT analysis in class, which looks at internal and external factors, but I'm not entirely sure if that's the right model for risks specifically.

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I'd approach this by first defining what we mean by "internal" and "external" risks. Then I'd quickly review the key features of each model option to see which one seems designed to handle that full scope of risks. Probably want to jot down a quick pros and cons list for each.

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Cassi

7 months ago

Okay, for this type of question, I'd focus on identifying the core purpose and capabilities of each model. That should help me determine which one is best suited for analyzing both internal and external business risks. Gotta make sure I don't overthink it though.

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Leonardo

7 months ago

Hmm, this seems like it could be a tricky one. I'd want to make sure I really understand the differences between the various risk models before trying to select the right one. Maybe I'd start by listing out the key internal and external risks a business might have and then see which model best captures those.

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Arthur

8 months ago

I think I'd start by considering the different types of risks a business might face, both from internal factors like operations and management, and external factors like the market and regulations. Then I'd try to match those up with the models described in the question options.

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King

2 months ago

Don't forget about scenario analysis for deeper insights!

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Marla

2 months ago

Exactly! Models like SWOT and PESTLE can help with that.

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Beckie

2 months ago

I agree, internal and external risks are crucial to assess.

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