CIPS Exam L4M8 Topic 8 Question 54 Discussion

Actual exam question for CIPS's L4M8 exam

Question #: 54
Topic #: 8

[All L4M8 Questions]

What potential costs could an organization face if it fails to conduct Due diligence effectively?

AExplanation:
Though strong due diligence procurement professionals can assess which suppliers or potential suppliers appear to meet the criteria associated with ethical practice.
Prior to the contract being awarded, strong due diligence can save the organization from the following cost:
1) Cost of reputation
2) Environmental damage
3) Stakeholders dissatisfaction,
4) poor quality and rework
5) Breach of contract
6) Ethical concerns

Show Suggested Answer

Suggested Answer: A

by Casandra at Feb 07, 2025, 06:42 PM

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Lezlie

10 days ago

I agree, it's important to avoid poor quality and rework costs.

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Albina

14 days ago

Yes, failing to conduct due diligence can lead to stakeholders dissatisfaction.

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Brendan

17 days ago

The potential costs could be reputation damage.

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