C_ARSUM Ariba Supplier Management Practice Question
A buying organization's supplier risk team wants to be alerted automatically whenever a strategic supplier's external financial health score drops below a configured threshold, without manually re-running reports. Which SAP Ariba Supplier Risk capability should the administrator configure?
⚠ Common exam trap
The trap here is assuming any risk-related questionnaire or scorecard will notify you when an external financial score changes, rather than the continuous monitoring feature that actually subscribes to the third-party data feed.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Supplier risk monitoring with threshold-based alerts on the supplier profile
Automated early warning on an external financial metric requires continuous monitoring of an external data feed with alert thresholds configured for the supplier or segment. Qualification questionnaires and performance scorecards are periodic and supplier- or transaction-driven, and engagement risk controls attach to a specific engagement rather than continuously watching the supplier's financial health score.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
A supplier qualification questionnaire with an expiration date
Why it's wrong here
Qualification questionnaires collect declarative answers from the supplier and can be set to expire so they must be resubmitted periodically. That is a point-in-time attestation process driven by the supplier's own responses, not an automated monitor of an external financial score, so it cannot detect a sudden decline between questionnaire cycles.
- ✓
Supplier risk monitoring with threshold-based alerts on the supplier profile
Why this is correct
Risk monitoring continuously consumes external data feeds for monitored suppliers and compares incoming values against the alert thresholds you define on the supplier or segment. When the financial health score crosses the configured limit, the system raises an alert and notifies the responsible risk contact, which is exactly the automatic, hands-off behavior the team requires.
- ✗
Engagement risk controls with a supplier-facing questionnaire
Why it's wrong here
Engagement risk controls govern the risk assessment steps tied to a specific sourcing or contracting engagement and require the control workflow to be triggered. They do not continuously poll an external financial data feed for a numeric score change, so no automatic alert fires when the supplier's financial health index simply declines between engagements.
- ✗
A scheduled supplier performance scorecard refresh
Why it's wrong here
Performance scorecards aggregate internal transactional metrics such as delivery, quality, and cost against a scoring model. They report on how the supplier has performed historically and are refreshed on a schedule, but they do not ingest third-party financial health ratings, and a scorecard refresh never raises a real-time risk alert when an external score falls.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official SAP exam blueprint
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