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CIPS L4M8 Exam
Procurement and Supply in Practice (Page 6 )

Updated On: 1-Feb-2026
Page 6 of 40
PDF with 192 Questions

Why is it important to have adequate procedures in place within an organization in relation to bribery?

  1. See Explanation section for answer.

Answer(s): A

Explanation:

Bribery is the act of giving someone something of value to persuade them to do something that benefits you. Ethical and responsible sourcing requires conducting due diligence on bribery before going into contractual relationship because failure to this might lead to loss in reputation. In other for an organization to defend itself against a case of suspected bribery, the United Kingdom bribery Act introduced in 2010 suggests that organizations should have adequate procedures' in place.
The following are six procedures an organization should have in place to be able to defend itself against bribery:

1) Proportionate procedure
2) Top level commitment
3) risk assessment
4) due diligence
5) communication
6) monitoring and reviewing



What matrix helps to define how to manage stakeholders?

  1. See Explanation section for answer.

Answer(s): A

Explanation:

Stakeholders are individuals or organizations who are directly affected by a decision for example, community, shareholders, employees, suppliers, distributors, customers etc. stakeholders can be internal (employers, staffs), connected (such as suppliers, shareholders, financers and customers) external (Government, pressure groups, and community).

The matrix that helps define how to manage stakeholders is mendelow's stakeholders manage-ment matrix. This matrix is based on the theory that the level of management stakeholders require depends on the level of their power and interest within the project or organization The matrix groups stakeholders in to four quadrants according to their power and interest and ad- vice how to manage them.
1) Low power ­ Low interest (minimum effort)
2) Low power ­ High interest (keep inform)
3) High power ­ Low interest (keep satisfied)
4) High power ­ high interest (manage closely)
Refer to the question column for response



Explain how influencing, can relate to corruption within procurement.

  1. See Explanation section for answer.

Answer(s): A

Explanation:

Influencing is the capacity to be able to change behavior or opinions, either consciously or subconsciously.
As outlined by Yukl and falbets work from 1990 influencing can relate to corruption within procurement in these six ways.

1)A party can be assertive (forceful, directive, using deadlines),
2) Ingratiating i.e. using charm and flattery.
3) Exchange-Trading favors,
4) Upward appeal (requesting input for senior management not only that influencing can come as
5) Coalition; team members uniting for support.
5) Rational persuasion, i.e. bringing in logic and facts for clarification



What is business case?

  1. See Explanation section for answer.

Answer(s): A

Explanation:

A business case is a document containing the justification and the commercial benefits achievable for a potential project or an identified need, for example, the purchase of a capital equipment, con- struction of an additional warehouse or procuring more innovative software to replace the current on in use.
The essence of the business case is to obtain support and get buy-in from senior management.

In order to gain authority to apply whole life asset management a business case will need to be created and presented. A developed business case will cover the following element.
1) Introduction: Outline of what the business case is all about
2) Objective: Explanation of what the business case desired outcome is.
3) Approach that will be undertaken
4) List of resources required
5) Benefits of achieving the objective
Refer to the question column for response



When should whole life asset management be applied?

  1. See Explanation section for answer.

Answer(s): A

Explanation:

When organization has made the decision about which option is best for sourcing the asset, it can then begin to work on the whole life asset management strategy.
Whole life asset management is the process of evaluating the total price and all associated costs of a product to make an informed decision as to which option will provide the organization with the best value for money. This strategy is only under taken for large-value procurements because; 1) It takes considerable time (2) It involves many stakeholders and require numerous resources; If whole life asset management were conducted on every purchase it would not create value for the organization and that may tie up valuable resources.
Refer to the question column for response



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