Which of the following models would be used to explore internal and external risks to a business?
Answer(s): C
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?
Answer(s): D
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?
Answer(s): A
The LILAC Model is; Leadership, Involvement, Learning, Accountability and Communication. P. 149
Which of the following are technological risks to an organisation? Select TWO
Answer(s): A,D
Cyber security and network failure are two types of security risks. See. P. 154. There aren't a lot of questions on chapter 3.4 as it's a very short chapter and a lot of the material is repeated in earlier chapters. A brief look over this chapter is all you'll need before the exam.
Maple Tree Limited is a Canadian company who has recently signed a new contract with a supplier who is based in Chin
Answer(s): C,D
The correct answers are 3 + 4. To mitigate the risk, you want to ensure price stability for the duration of the contract- you don't want the prices to keep going up and down. Therefore options 1 and 2 wouldn't help- the prices would still go up and down regardless of which currency was used for quotes. Using a forward contract, or fixing the exchange rate, however, would give price certainty,and therefore mitigate the risk. See p.23 for more information on currency risks and how to overcome these
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