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CIPS L5M2 Exam - Topic 4 Question 72 Discussion

Which of the following statements are true about risk management? Select TWO.
B) risk management is a continuous process and D) risk management can help companies ensure the smooth and successful running of purchase and supply operations
A) the goal of risk management is to reduce risks to 0
C) risk management is an activity that is conducted by a business once a year
E) risk management is the process by which all risks are either treated or transferred

CIPS L5M2 Exam - Topic 4 Question 72 Discussion

Actual exam question for CIPS's L5M2 exam
Question #: 72
Topic #: 4
[All L5M2 Questions]

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

Show Suggested Answer Hide 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 France at May 31, 2026, 02:36 AM

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Kimbery
4 days ago
C is wrong. It's not just once a year.
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Erinn
9 days ago
Yes, B is continuous. D helps operations too.
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Elza
14 days ago
A seems unrealistic. Risks can't be zero.
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Chan
19 days ago
I agree, B is definitely true.
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Yun
25 days ago
I think B and D are correct.
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Latia
30 days ago
I thought all risks had to be treated or transferred, is E true?
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Leigha
1 month ago
Wait, can risk management really ensure smooth operations?
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Francine
1 month ago
C is totally wrong, risk management is ongoing!
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Armando
2 months ago
A is unrealistic, you can never reduce risks to 0.
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Maira
2 months ago
B and D are definitely true!
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Caitlin
2 months ago
I feel like C is definitely false, but I’m torn between A and E for the second choice. I need to think more about how risks are treated or transferred.
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Lucy
2 months ago
I’m a bit confused about A; I thought the goal was to minimize risks, not eliminate them completely.
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Novella
2 months ago
I remember practicing a question similar to this, and I think D is also correct because effective risk management can really help operations run smoothly.
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Dortha
2 months ago
I think option B is definitely true since risk management is supposed to be ongoing, but I'm not sure about the other one.
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