L5M2 Exam Preparation Material | Managing Supply Chain Risk

Prepare for the L5M2 with reliable study materials, practice questions, and key exam insights.

Prepare for the L5M2 Managing Supply Chain Risk exam with CertQueen's independently developed study resources. Review important concepts, practice scenario-based questions, and use clear explanations to identify areas that require further study.

Question#1

There are three main areas where third party suppliers are used in risk management.
What are they?

A. contract negotiations
B. supply chain management
C. credit ratings
D. risk auditing
E. disaster recovery

Explanation:
3 4 and 5 are the correct answers. This is from p. 79 of the textbook - each of these three areas is then covered in detail throughout chapter 2.2.

Question#2

Kevin is a consultant who works for himself and is predominantly based at home, except for when he visits clients. He has recently taken on a role advising a client about the feasibility of building a new railway station in a village.
Which of the following insurances would be vital for Kevin to take out?

A. product liability
B. public liability
C. trade credit
D. professional indemnity

Explanation:
As a consultant he will need Professional Indemnity insurance. This insurance is for roles that include providing advice, designs and services. Insurances comes up a bit in the exam so revise this from p.96-100

Question#3

What is the job of an underwriter?

A. to assist a buyer in selecting the correct insurance
B. to advise required insurance levels for a contract
C. to evaluate insurance applications
D. to determine the validity of an insurance claim

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#4

The CBCI and DBCI are professional qualifications in which area?

A. supply chain management
B. ethical business practices
C. environmental improvements
D. business continuity

Explanation:
These are qualifications in business continuity. This comes from p.107 of the study guide. CBCI stands for Certificate of the Business Continuity Institute and DBCI Diploma of the Business Continuity Institute. Once you know what the acronyms stand for, the question is quite easy!

Question#5

An indemnity clause should contain which of the following pieces of information 1) duties of both parties 2) a monetary limit 3) insurance levels 4) details of the breach 5) a time limit

A. 1,2,5
B. 1,3,4
C. 2,4,5
D. 3,4,5

Explanation:
Indemnity clauses should contain duties of both parties, a monetary limit and a time limit (1 2 and 5). It should also detail what types of costs are covered. These four points are explained on p.61. An indemnity clause doesn't necessarily signal a breach in contract, and levels of insurance are not relevant here.

Exam Code: L5M2
Q & A: 120 Q&As         Updated:  Sep 22,2026

 

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What This L5M2 Study Resource Helps You Do

Review Key Concepts

Review the technologies, products, processes, and practical skills covered by the current L5M2 exam objectives.

Practice Scenario-Based Questions

Work through independently developed questions designed to strengthen your understanding of technical scenarios and decision-making.

Identify Knowledge Gaps

Use your results and the provided explanations to find weaker areas and focus your study more effectively.

How to Use This L5M2 Preparation Material

Review the Exam Scope

Start by reviewing the topics covered by the L5M2 exam. Compare them with the official exam objectives to understand the required technologies, operational tasks, and practical skills, then identify the areas that deserve the most attention.

Practice Independently

Complete a focused set of practice questions for each topic. On your first attempt, avoid referring to notes, answers, or other study resources so that you can evaluate your current understanding more accurately.

Study the Explanations

Review the answers and explanations after completing each practice session. Understand why the correct option is appropriate for the given scenario and why the other options may be incorrect or less suitable.

Close Knowledge Gaps

Keep track of incorrect answers, unfamiliar concepts, and weaker knowledge areas. Review these topics using official documentation and practical experience, then answer the related questions again to reinforce your understanding and monitor your progress.

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Exam Code: L5M2
Q & A: 120 Q&As
Updated:  Sep 22,2026

 

 Access Complete L5M2 Preparation Material