C_ARSUM Ariba Supplier Management Practice Question
A buying organization wants to proactively monitor news and financial data for its strategic suppliers and receive alerts when a supplier's risk level changes. Which SAP Ariba Supplier Management capability should the administrator enable to meet this requirement?
⚠ Common exam trap
The trap here is assuming that any supplier assessment tool provides continuous monitoring, when in fact only the dedicated risk exposure monitoring service scans external sources and raises alerts.
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 Exposure Monitoring
Supplier Risk Exposure Monitoring is designed to continuously watch external data sources and alert buyers to changes in supplier risk. The other capabilities listed are assessment or data-collection tools that operate at discrete points in time and do not provide ongoing, event-driven risk alerts for strategic suppliers.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Supplier Risk Exposure Monitoring
Why this is correct
Supplier Risk Exposure Monitoring continuously scans external sources such as news, financial databases, and regulatory lists, and generates alerts when a supplier's risk profile changes. This is precisely the proactive monitoring and alerting capability described in the scenario. It is a standard component of SAP Ariba Supplier Risk and integrates with Supplier 360 to surface risk indicators for strategic suppliers.
- ✗
Supplier Registration Questionnaire
Why it's wrong here
A Supplier Registration Questionnaire collects self-reported information from suppliers during onboarding. It is a data collection instrument, not a monitoring service. It does not continuously scan external sources, nor does it generate alerts when a supplier's risk level changes, making it unsuitable for the proactive risk monitoring requirement in this scenario.
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Supplier Performance Management Scorecard
Why it's wrong here
A Supplier Performance Management Scorecard measures a supplier's performance against KPIs such as quality, delivery, and cost. It evaluates historical performance data rather than external risk indicators like news or financial health. While valuable for performance reviews, it does not provide the proactive risk monitoring and alerting the scenario requires.
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Supplier Qualification Project
Why it's wrong here
A Supplier Qualification Project is used to onboard and assess a supplier's capabilities against qualification criteria. It is a one-time or periodic assessment, not a continuous monitoring service. It does not scan external news or financial data and does not generate real-time risk alerts, so it cannot satisfy the proactive monitoring requirement described.
About these practice questions
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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
This C_ARSUM practice question is part of Courseiva's free SAP certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the C_ARSUM exam.