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Free L5M2 Exam Braindumps (page: 14)

Page 13 of 31
PDF with 120 Questions

Which of the following will you put into box 5?

  1. new technology
    (Correct)
  2. forward contract
  3. outsource
  4. insurance

Answer(s): A

Explanation:



New technology (ie a new web portal or payment mechanism) would help treat this risk.



Which of the following will you put into box 6?

  1. new technology
  2. forward contract
  3. outsource
  4. insurance

Answer(s): D

Explanation:



The company should ensure they have the correct levels of Employer's Liability insurance as staff are getting injured. This transfers the risk to the insurance company. (I mean they should probably do something to stop the staff getting hurt too... but this is just an imaginary example question....)



Which of the following will you put into box 7?

  1. new technology
  2. forward contract
  3. outsource
  4. insurance

Answer(s): C

Explanation:



Which of the following will you put into box 8?

  1. new technology
  2. forward contract
  3. outsource
  4. insurance

Answer(s): B

Explanation:



A forward contract would fix the exchange rate at a certain level, allowing for cost certainty. This mitigates the risk of the currency getting any weaker.






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