CIPS Exam L5M2 Topic 4 Question 42 Discussion

Actual exam question for CIPS's L5M2 exam

Question #: 42
Topic #: 4

[All L5M2 Questions]

Which of the following is not a benefit of having a contingency plan?

Acompetitive advantage

Bincreased staff morale

Cgreater resilience to force majeure events

Dincreased profits

Show Suggested Answer

Suggested Answer: D

Contingency plans won't increase your profit, but they will do the other three things. This is from p.109-110 of the study guide

by Kenneth at Sep 13, 2024, 03:55 PM

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Sabrina

4 months ago

Haha, increased profits? That's like winning the lottery - contingency plans are all about risk management, not getting rich quick.

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Tran

4 months ago

Lonna: Exactly, it's all about minimizing risks and being able to bounce back from challenges.

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Lonna

4 months ago

Definitely, it's not about making money but ensuring the business can keep running smoothly.

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Gladys

4 months ago

Yeah, having a contingency plan is more about being prepared for unexpected events.

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Selene

5 months ago

Wait, what? A contingency plan gives you a competitive edge, not a disadvantage. This question is a bit strange.

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Barb

4 months ago

D) increased profits

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Marleen

4 months ago

C) greater resilience to force majeure events

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Felicia

4 months ago

B) increased staff morale

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Carmela

4 months ago

A) competitive advantage

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Antonio

5 months ago

I believe increased profits may not directly result from a contingency plan.

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Denny

5 months ago

But which of the options do you think is not a benefit of having a contingency plan?

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Antonio

5 months ago

I agree, it helps in being prepared for unexpected events.

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Denny

5 months ago

I think having a contingency plan is important for a business.

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Tanesha

5 months ago

I'm pretty sure the answer is D. Increased profits - having a contingency plan doesn't directly boost your bottom line.

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Filiberto

5 months ago

C) greater resilience to force majeure events

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Luz

5 months ago

B) increased staff morale

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Myra

5 months ago

A) competitive advantage

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