Curious about Actual ISM CPSM (LEAD) Exam Questions?

Correct : D

Current Situation Analysis: The team has already analyzed their current situation and gauged the impact of supply disruptions. This is a crucial first step in risk management, as it identifies the potential vulnerabilities and the consequences of disruptions.

Next Steps in Risk Management: Once the risks are identified, the next logical step is to outline contingency plans and continuity measures. This ensures that the company has a proactive approach to mitigate the identified risks.

Contingency Planning: This involves developing specific actions and procedures that will be implemented in case of a supply disruption. These plans should be detailed and actionable to ensure quick response times.

Continuity Measures: These are measures that ensure the company can continue operations with minimal disruption. This might include alternative sourcing strategies, safety stock levels, and flexible supply chain configurations.

Reference: According to the risk management frameworks such as ISO 31000 and supply chain best practices, outlining contingency plans and continuity measures is a critical next step after risk identification and assessment.

Correct : D

Cost Synergies in Mergers: Cost synergies refer to the potential cost savings and efficiencies that can be achieved when two companies merge. This typically includes increased purchasing power and the elimination of redundancies.

Increased Purchasing Power: By merging, the companies can combine their purchasing volumes, leading to better negotiation power with suppliers and reduced procurement costs.

Elimination of Redundancies: The merger allows the companies to eliminate duplicate functions, systems, and processes, leading to significant cost savings.

Not Potential Synergies: Reduced competition is not a cost synergy; it's a market effect. Sharing marketing channels is more of a revenue synergy than a cost synergy.

Reference: This categorization is supported by merger and acquisition literature, including studies from the Harvard Business Review and the Institute of Mergers, Acquisitions, and Alliances (IMAA).

Correct : A

Strategic Planning Process: After establishing the vision, mission, and value statements, the next step in strategic planning is to develop specific goals and objectives. These goals and objectives translate the high-level vision and mission into actionable and measurable targets.

Goals and Objectives Development: This process involves identifying the key areas where the organization wants to achieve results and setting specific, measurable, achievable, relevant, and time-bound (SMART) objectives.

Importance: Developing goals and objectives provides a clear roadmap for the organization and aligns the efforts of all departments towards common strategic priorities.

Reference: This step is emphasized in strategic planning frameworks such as those by the Balanced Scorecard Institute and strategic management textbooks like 'Strategic Management: Concepts and Cases' by Fred R. David.

Correct : C

Corporate Social Responsibility (CSR) Audits: CSR audits assess a company's adherence to ethical standards and regulatory requirements in areas such as environmental protection, workplace safety, and social responsibility.

Chemical Safety Data Sheets: Regularly checking chemical safety data sheets ensures that the company is compliant with safety regulations and that employees are aware of the hazards and proper handling procedures of chemicals used in operations.

Relevance to CSR: Ensuring chemical safety is a critical aspect of corporate responsibility, as it directly impacts employee health and safety and environmental protection.

Reference: This practice is supported by guidelines from organizations such as the Occupational Safety and Health Administration (OSHA) and environmental protection agencies, which emphasize the importance of regular safety audits and compliance checks.

Correct : C

Cultural Diversity Management: Leading a team with diverse cultural backgrounds requires a focus on common goals and the purpose of the team. This helps unify the team and provides a clear sense of direction.

Team Purpose and Need: Clearly articulating the need for the team and its objectives ensures that all members, regardless of cultural differences, understand their roles and the importance of their contributions.

Effective Team Leadership: Focusing on the need for the team helps in overcoming cultural barriers and fosters collaboration, commitment, and a shared sense of purpose.

Reference: This approach is supported by leadership and team management principles, such as those outlined in 'Leading Global Teams' by Harvard Business Review and 'Cultural Intelligence: CQ' by David Livermore, which emphasize the importance of a shared mission in managing culturally diverse teams.