Discuss CIPS L5M2 Exam Topic 4 Question 72

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

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.

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17 comments · newest first

Arlette 2 months ago

Same here! They make the most sense.

Nancey 2 months ago

I feel confident about B and D.

Marla 2 months ago

E is misleading. Not all risks can be transferred.

Kimbery 2 months ago

C is wrong. It's not just once a year.

Erinn 2 months ago

Yes, B is continuous. D helps operations too.

Elza 2 months ago

A seems unrealistic. Risks can't be zero.

Chan 3 months ago

I agree, B is definitely true.

Yun 3 months ago

I think B and D are correct.

Latia 3 months ago

I thought all risks had to be treated or transferred, is E true?

Leigha 3 months ago

Wait, can risk management really ensure smooth operations?

Francine 3 months ago

C is totally wrong, risk management is ongoing!

Armando 4 months ago

A is unrealistic, you can never reduce risks to 0.

Maira 4 months ago

B and D are definitely true!

Caitlin 4 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.

Lucy 4 months ago

I’m a bit confused about A; I thought the goal was to minimize risks, not eliminate them completely.

Novella 4 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.

Dortha 4 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.

CIPS L5M2 Exam - Topic 4 Question 72 Discussion