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Free L5M2 Exam Braindumps (page: 2)

Page 2 of 31
PDF with 120 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?

  1. financial
  2. logistical
  3. opportunity
  4. reputation

Answer(s): A

Explanation:

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



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

  1. Porter's 5 Forces
  2. STEEPLE
  3. SWOT
  4. Poisson Distribution

Answer(s): C

Explanation:

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



Dave is a procurement manager for a chocolate factory who is running a tender to source cocoa from a new supplier. The tender is a huge opportunity for suppliers and the contract would be worth millions of pounds. Dave has passed some information about the tender to one of the bidders in exchange for a free holiday to Barbados.
Which of the following types of fraud has Dave committed?

  1. holiday fraud
  2. accepting a kick-back
  3. counterfeiting
  4. bribery

Answer(s): D

Explanation:

This is an example of bribery. The trip to Barbados is the bribe. For more information on these types of fraud see p.19



Risk should be a 'golden thread' that links all of the organisation's strategies, communications, policies and training. The LILAC model describes how a risk-aware culture can be created.
Which of the following form part of the LILAC model?

  1. Leadership and Learning
  2. Investment and Accountability
  3. Appraisal and Communication
  4. Learning and Information

Answer(s): A

Explanation:

The LILAC Model is; Leadership, Involvement, Learning, Accountability and Communication. P. 149



Page 2 of 31



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