Where the supplier guarantees to make good any losses suffered by the buyer as a result of product defects, for example
Indemnity.
As in 'an indemnity clause'.
'The supplier hereby indemnifies the buyer against / in the event of...'
Which two of the following constitute part of a common risk assessment or risk evaluation formula?
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.
'When the best XXX is selected, a formal YYY ZZZ is prepared and sent to the supplier. Choose the most likely words to replace XXX, YYY and ZZZ.
The best quotation is selected, which would meet the specification as well as meeting the other re-quired criteria; and in order to progress things round the procurement cycle, a purchase order would be issued.
'Because they are set up for a specified duration, XXX contracts are subject to expiry rather than completion, unless they are renewed or extended.'
Term contracts are set up for a period of time, or a 'term'.
The other answer options shown here are the subject of other QUESTION NO : s within this test.
Which STEEPLE factor deals with issues of import taxes, rising home labour costs, regional grants, stability of governing regimes?
Political.
It's a close-run thing with economic, but the reference to 'stability of governing regimes' clinches if for 'political'.
