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NEW QUESTION 39
Which of the following are benefits of ISO28000? Select TWO.
- A. increased market share
- B. cost saving
- C. decreased legal costs
- D. competitive advantage
Advantages of ISO28000 are competitive advantage and cost savings. The textbook explains that cost savings come through a reduction in security incidents. For more info on ISO28000 see p. 141
NEW QUESTION 40
Which of the following is an example of hedging?
- A. insurance
- B. audits
- C. risk assessments
- D. dual-sourcing
Insurance is a form of hedging. Hedging is using a financial instrument to offset the potential risk of an adverse loss (p.93) none of the other options mentioned are financial instruments.
NEW QUESTION 41
Dave is a procurement manager for a chocolate factory who is running a tender to source cocoa from a new supplier. The tender is a huge opportunity for suppliers and the contract would be worth millions of pounds.
Dave has passed some information about the tender to one of the bidders in exchange for a free holiday to Barbados. Which of the following types of fraud has Dave committed?
- A. accepting a kick-back
- B. holiday fraud
- C. counterfeiting
- D. bribery
This is an example of bribery. The trip to Barbados is the bribe. For more information on these types of fraud see p.19
NEW QUESTION 42
Which of the following risks is associated with sourcing from low-cost countries? Select TWO:
- A. geopolitical risks
- B. reputational risks
- C. operational risks
- D. financial risks
The correct answers are reputational risks and geopolitical risks. This is according to p. 77 of the study guide.
Although I personally feel this is a bit presumptive, painting all 'low-cost' countries with the same brush (are all 'low-cost countries' politically unstable and allow dodgy things that will affect your reputation?, this is what the textbook says ...
NEW QUESTION 43