Test Online Free CIPS L5M2 Exam Questions and Answers
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Which of the following statements is true about a Disaster Recovery Plan? Select TWO
Answer: Explanation:
Answers 2 and 4 are correct. A Business Continuity Plan is held at the top level, not a disaster recovery plan. This can be held at the department level- or whoever would have the ability to enact this if a disaster were to happen. A company is likely to have several Disaster Recovery Plans for different departments and different scenarios so several people within the organisation may be accountable for these. Option 3 is incorrect as the focus is on recovering systems (e.g. getting people back online) not on profit. P.155
Question 17Selectable Answer
Which of the following will you put into box 8?
Answer: Explanation:
The correct answers are as follows:
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Service Credits are commonly used in IT contracts. This is where the customer is compensated financially should the system 'go down' for a period.
Question 18Selectable Answer
Which of the following will you put into box 4?
Answer: Explanation:
The correct answers are as follows:
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The consequences of this risk are huge, therefore the risk should be terminated. This means the cause of the risk is taken away (i.e. the animal testing).
Question 19Selectable Answer
What is the job of an underwriter?
Answer: Explanation:
An underwriter evaluates insurance applications. Learn the difference between Insurance Underwriters and Claims Adjusters for the exam - this is a known topic. (A claims adjuster determines the validity of an insurance claim).
Question 20Selectable Answer
Which of the following will you put into box 2?
Answer: Explanation:
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Question 21Selectable Answer
Company X is a large manufacturer of cosmetics and household products. It operates in 57 different countries and has large and complex supply chains. The brand's popularity is partly due to the cheap price of the products compared with its competitors and Company X has recently discovered that child labour has been used within its supply chain. In response to this Company X has donated a large amount of money to charity.
What is this an example of?
Answer: Explanation:
This is Greenwashing. Greenwashing is the process of using a good deed to cover up unethical responsibility. See p. 45. In this example Company X has thrown some money at a charity in order to cover up the fact it has child labour issues within the supply chain. See https://en.wikipedia.org/wiki/Greenwashing
Question 22Selectable Answer
Which of the following will you put into box 3?
Answer: Explanation:
The correct answers are as follows:
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The consequences of this risk are huge, therefore the risk should be terminated. This means the cause of the risk is taken away (i.e. the animal testing).
Question 23Selectable Answer
In an organisation, who is responsible for creating a risk assessment register?
Answer: Explanation:
A Cross Functional Team should create a risk register. It shouldn't be the responsibility of one person to do this- more points of view will lead to more risks being identified. Accountability for the Risk Register may however sit with the CEO or a Department Manager. This is explained on p. 132
Question 24Selectable Answer
Yusef is a new procurement manager at FRD Incorporated. He is looking through the Risk Assessments for his department and notices that the cause of the risk is not identified.
Why might this be?
Answer: Explanation:
This could be for cultural reasons within the company. P. 135 states that sometimes causes of risk are not recorded as this could lead to a blame culture within the company.
Question 25Selectable Answer
Which of the following will you put into box 2?
Answer: Explanation:
The correct answers are as follows:
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Cashflow issues can lead to serious financial problems and the company going bust.
Therefore this risk must be treated
