ISM LEAD Exam Questions - Navigate Your Path to Success

The ISM Leadership and Transformation in Supply Management (LEAD) exam is a good choice for Data Implementation Specialist for Financial Analyst for Risk Assessment Manager and if the candidate manages to pass ISM Leadership and Transformation in Supply Management exam, he/she will earn ISM CPSM Certification. Below are some essential facts for ISM LEAD exam candidates:

TrendyCerts offers 165 Questions that are based on actual ISM LEAD syllabus.
Our ISM LEAD Exam Practice Questions were last updated on: Feb 27, 2025

Sample Questions for ISM LEAD Exam Preparation

Question 1

DEF Inc. is a mid-sized manufacturing company. In recent years, the products DEF manufactures have depended on goods and services that are more complex than those in the past. As a result, the company needs to rely on suppliers located at longer distances, increasing the need for managing risks. In response, DEF's supply management team begins a comprehensive risk-planning effort. The team analyzes their current situation and gauges the impact of supply disruptions. Which of the following should the team do NEXT?

AEstablish the firm's risk tolerance and ways to ensure against problems

BDecide how often contingency plans are to be reviewed and revised in the future

CTrain all affected departments on threat detection measures

DOutline contingency plans and continuity measures

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.

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Question 2

XYZ, Inc. is in the due diligence phase of an upcoming merger. The team is involved in assessing the cost synergies that can be realized from the merger. Which of the following can be regarded as potential cost synergies?

I . Reduced competition

II . Sharing of marketing channels

III . Increased purchasing power

IV . Elimination of redundancies

AII and III only

BI and IV only

CI, II, III and IV

DIII and IV only

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).