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CIPS Exam L5M2 Topic 5 Question 48 Discussion

Actual exam question for CIPS's L5M2 exam
Question #: 48
Topic #: 5
[All L5M2 Questions]

Zara is a procurement manager who is thinking about working with a new supplier to source buttons for her clothes manufacturing business. Her manager has asked her to do some due diligence on the supplier's financial stability. What should she do?

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Suggested Answer: A

She should use a credit rating agency for this. She should not do this herself as she won't have access to accurate information like an agency will. The supplier may not have been truthful in their tender. For information on Credit Rating Agencies see p.79


by Elvis at Nov 17, 2024, 07:51 AM

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Jeannine
3 months ago
I disagree, I think Zara should conduct a risk assessment based on the information provided by the supplier in the tender. It would give a more comprehensive view of the supplier's overall risk profile.
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Sonia
3 months ago
I agree with Ernest, using a credit rating agency would provide a more objective assessment of the supplier's financial stability.
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Leatha
3 months ago
I'm going with A, because I don't want to risk my career on a shaky supplier. Unless it's a supplier of clown shoes, then I'd go with B just for the laughs.
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Marion
3 months ago
C might be a quick and easy solution, but I don't know if I'd trust the supplier's own information. Gotta do your own due diligence, you know?
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Mitsue
2 months ago
C) conduct a credit check on the supplier based on the information provided by them in the tender
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Robt
2 months ago
B) use an outsourced third-party risk management consultant
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Lillian
3 months ago
A) use an outsourced third-party credit rating agency
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Melda
3 months ago
D sounds like a good option too. Conducting a risk assessment based on the supplier's information could give a more comprehensive picture.
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Delbert
2 months ago
D) conduct a risk assessment based on the information provided by the supplier in the tender
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Tamie
2 months ago
C) conduct a credit check on the supplier based on the information provided by them in the tender
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Valentin
2 months ago
B) use an outsourced third-party risk management consultant
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Joseph
3 months ago
A) use an outsourced third-party credit rating agency
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Ernest
3 months ago
I think Zara should use an outsourced third-party credit rating agency.
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Juliana
3 months ago
I think the correct answer is A. Using a third-party credit rating agency is the most reliable way to assess the supplier's financial stability.
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Kaitlyn
2 months ago
True, conducting a risk assessment based on the supplier's information could also provide valuable insights.
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Alline
3 months ago
I think conducting a credit check based on the supplier's information is the most efficient option.
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Lewis
3 months ago
But wouldn't it be better to use a risk management consultant to get a more comprehensive assessment?
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Maryanne
3 months ago
I agree, using a third-party credit rating agency is a good idea.
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