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CIPS L5M2 Exam - Topic 4 Question 75 Discussion

Company DDD has recently seen a drop in share price and has high levels of Work-in-Progress (WIP) due to late supplier deliveries. Which of the following is the type of risk the business facing?
A) financial
B) logistical
C) opportunity
D) reputation

CIPS L5M2 Exam - Topic 4 Question 75 Discussion

Actual exam question for CIPS's L5M2 exam
Question #: 75
Topic #: 4
[All L5M2 Questions]

Company DDD has recently seen a drop in share price and has high levels of Work-in-Progress (WIP) due to late supplier deliveries. Which of the following is the type of risk the business facing?

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Suggested Answer: A

This is a financial risk. A drop in share prices is a huge financial risk for a company. Having lots of items as WIP is also a financial risk as this signifies that a lot of money is tied up in stock being held on site. Types of risk are very popular exam questions for this module- for a full list of these and s see p.11


by Winfred at Jul 20, 2026, 04:50 AM

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Ahmad
3 days ago
Definitely a logistical risk. Late deliveries are a big issue.
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Genevive
8 days ago
Reputation risk could be a factor too, especially if customers are unhappy with delays. It's hard to choose just one!
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Hayley
13 days ago
Opportunity risk sounds like it could fit, but I feel like that's more about missed chances rather than current issues.
upvoted 0 times
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Meaghan
18 days ago
I remember a practice question about supplier delays affecting operations. That might relate to logistical risk here.
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Eugene
23 days ago
I think the drop in share price suggests a financial risk, but I'm not entirely sure if it's just that.
upvoted 0 times
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