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CIPS Certification
L3M3 Exam
CIPS.L3M3.v2024-05-04.q32 Dumps

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Question 1

Which two of the following constitute part of a common risk assessment or risk evaluation formula?

A.Contingency
B.Likelihood
C.Impact
D.Prevention

Correct Answer: B,C

What is the likelihood of an event occurring?
What will be the impact of that event occurring?
This is the basis of almost all modern risk management.
CIPS has good content at Advanced Diploma level on the subject of Risk Management, and I have prepared tests for the two subjects in this area. :) Sadgrove's book on business risk, in my view, is excellent; and NN Taleb's work (eg 'Antifragile') on risk, although difficult is, in my opinion, fascinating.

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Question 2

A 'cause and effect' or 'fishbone' diagram is also commonly known as:

A.A Murakami diagram
B.A Fukushima diagram
C.An Ishiguro diagram
D.An Ishikawa diagram

Correct Answer: D

The answer is an Ishikawa Diagram.
Can be used in addressing quality problems, problems of under-performance, etc.
The other Japanese-sounding names shown as possible answers are spurious - two are novelists, and Fukushima was a serious environmental radioactive leak at a nuclear power station on the coast of Japan.

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Question 3

What gets measured, gets ...'?

A.Measured
B.Procured
C.Managed
D.Lost

Correct Answer: C

Managed.
This an old management adage, which is intended to encourage managers to measure helpful indica-tors (not everything!).

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Question 4

'A purchasing procedure whereby potential suppliers are invited to make a firm and unequivocal offer of the price and terms on which they will supply specified goods or services which, on ac-ceptance, shall be the basis of the subsequent contract'

A.Competitive dialogue
B.Request for information
C.Invitation to tender
D.Expression of interest

Correct Answer: C

The 'firm and unequivocal offer' and 'the basis of a contract' indicate the reference to a formal and binding tender procedure. The answer is therefore 'invitation to tender'.

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Question 5

In a reverse online auction:

A.The highest bid wins
B.The seller sets up the auction
C.The lowest bid wins
D.No bid wins

Correct Answer: C

Bidders compete against each other, reducing bid prices until one winner is found - this is the sub-mission of the lowest-priced bid (unless stated otherwise in the auction documentation).

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