CIPS L5M2 Practice Exam Questions & Answers
5 Free Questions
· Last reviewed: September 12, 2026
· Prepared & Reviewed by the ValidExamDumps Editorial Team
Exam Facts
CIPS L5M2 Exam Details
Key details for this exam, checked against the published exam outline
120
Practice Questions (Our Bank)
180 minutes
Exam Duration
50% or above
Passing Score
- Exam Code
- L5M2
- Full Name
- Managing Supply Chain Risk
- Issuing Body
- Chartered Institute of Procurement and Supply (CIPS)
- Question Format (Our Bank)
- Multiple Choice
- Delivery
- Computer-based
- Eligibility
- No formal prerequisites required
- Validity
- 3 years
Practice Questions
Free L5M2 Practice Questions
Each question shows the correct answer and an explanation of why it is right
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Every question and its answer is checked by our L5M2 exam
preparation team, who also write the explanation shown with each one.
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Which of the following will you put into box 6?
Correct Answer:
D
Explanation
The company should ensure they have the correct levels of Employer's Liability insurance as staff are getting injured. This transfers the risk to the insurance company. (I mean they should probably do something to stop the staff getting hurt too... but this is just an imaginary example question....)
What is the final stage of Deming's Plan - Do - Check cycle which is encouraged by ISO9001?
Correct Answer:
C
Explanation
Act is the final stage. See p.25 for a diagram of the cycle.
Which of the following is not a benefit of having a contingency plan?
Correct Answer:
D
Explanation
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
Which of the following will you put into box 7?
Correct Answer:
C
Explanation
The correct answers are as follows:
A black swan event is what type of occurrence?
Correct Answer:
D
Explanation
A black swan event is an unusual occurrence - something that is rare. See p.124
Domain 1: Managing Teams and Individuals
This portion examines various management philosophies and the rationale behind different approaches to self-management, as well as the management of individuals and teams within organizational structures. Understanding team dynamics and individual management approaches is essential for implementing risk management strategies across the supply chain.
Domain 2: Managing Supply Chain Risk
This segment explores diverse methodologies and strategies for assessing risk levels in supply chains. You will learn to evaluate tools and techniques for identifying supply chain vulnerabilities and learn how to document risks in a structured manner through risk registers and similar frameworks.
Sample questions from this domain above:
Q1Q4Q5
Domain 3: Managing Contractual Risk
This area evaluates legal and procedural aspects related to contract formation and the legal consequences of non-compliance. Candidates examine how contractual terms can mitigate or introduce risks and understand the implications of breaches on organizational operations.
Sample question from this domain above:
Q2
Domain 4: Advanced Contract and Financial Management
This section focuses on creating measures to ensure and enhance contract performance. It examines strategic sourcing approaches and financial controls that reduce supply chain risk and support organizational objectives.
Domain 5: Managing Ethical Procurement and Supply
This portion explains the effects of and efforts to improve sustainability. It covers managerial strategies to promote ethical practices in procurement and supply processes and how ethical lapses create reputational and operational risks.
Sample question from this domain above:
Q3
FAQ
L5M2 Exam FAQ
Common questions about the exam itself
What is L5M2 Managing Supply Chain Risk and where does it fit in CIPS qualifications?
L5M2 is a core module of the CIPS Level 5 Advanced Diploma in Procurement and Supply, which is the advanced level of CIPS qualifications leading toward Chartered Member status. It sits above Level 4 qualifications and focuses specifically on identifying and managing risks across complex supply chain environments.
Do I need any prerequisites before taking L5M2?
CIPS does not publicly state mandatory prerequisites for L5M2, though most candidates have completed lower level CIPS qualifications first. You must be registered as a CIPS student member to book the exam.
How much study time should I allow for L5M2?
CIPS recommends 335 hours of self-study for the Level 5 Advanced Diploma as a whole. Individual candidates report taking anywhere from 8 to 12 weeks of focused preparation depending on their background and prior procurement experience.
What makes L5M2 harder than lower level CIPS exams?
L5M2 requires you to apply risk management concepts to complex real-world scenarios rather than simply recall facts. The exam uses Short Scenario questions that test your ability to analyze supply chain situations and recommend appropriate risk mitigation strategies.
Which topic area in L5M2 do candidates find most challenging?
Managing Contractual Risk often presents challenges because it requires understanding both legal frameworks and practical supply chain implications. Candidates need to grasp how contract clauses protect against or expose the organization to supply chain disruption.
How is the L5M2 exam structured and what should I expect on exam day?
The exam is computer-based with multiple choice questions and Short Scenario questions that require extended written responses. You will need to demonstrate your ability to analyze situations and justify recommendations rather than simply select answers.
Can I retake L5M2 if I do not pass on my first attempt?
Yes, you can retake L5M2. CIPS offers five exam opportunities each year in March, May, July, September, and November, so you can schedule a resit when you feel ready.
How long does the L5M2 certification stay valid and do I need to renew it?
CIPS does not publish an expiry date for the L5M2 qualification itself. Once you pass the exam and achieve the Level 5 Advanced Diploma, the qualification remains on your record, though maintaining Chartered Member status through CIPS involves ongoing professional development.
What job roles typically pursue L5M2 and how does it prepare me for them?
L5M2 is aimed at supply chain managers, procurement managers, and senior operations professionals who need to assess and mitigate organizational risks. The module equips you to lead risk management initiatives and make strategic decisions about supplier relationships and contractual arrangements.
How does L5M2 relate to other Level 5 CIPS modules?
L5M2 is one of ten possible Level 5 modules and is often taken alongside other core and elective modules. It complements modules like L5M1 (Strategic Procurement and Supply) and L5M4 (Managing Procurement and Supply Transactions) by providing the risk management perspective across supply chain operations.
