C_ARSUM Ariba Supplier Management Practice Question

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

• ✓

  Risk factors that represent inherent risk dimensions, such as geographic location and industry.

  Why this is correct

  In SAP Ariba Supplier Risk, risk factors are the building blocks of a risk exposure model. They define the inherent risk dimensions relevant to the organization, such as country, industry, or spend category. By including appropriate risk factors, the model can calculate inherent risk scores. This is a necessary component for assessing risk before considering mitigation controls.

• ✗

  Sourcing project templates from SAP Ariba Sourcing.

  Why it's wrong here

  Sourcing project templates are used to manage sourcing events and are unrelated to risk exposure model configuration. They do not provide inherent risk dimensions or mitigation controls. Including them would not contribute to the risk model's calculation of inherent or residual risk, and they are not part of the Supplier Risk configuration.

• ✗

  Supplier registration questionnaires from the supplier onboarding process.

  Why it's wrong here

  Supplier registration questionnaires collect onboarding data such as company details and certifications. While some data might be used in risk assessment, they are not a component of the risk exposure model configuration. The model requires risk factors and mitigation controls, not registration questionnaires, to compute risk scores.

• ✗

  Supplier performance scorecards from the Supplier Performance Management module.

  Why it's wrong here

  Performance scorecards are part of Supplier Performance Management and focus on operational metrics like quality and delivery. They are not directly used in risk exposure model configuration in Supplier Risk. While performance can inform risk, the risk exposure model specifically uses risk factors and controls, not performance scorecards, to calculate inherent and residual risk.

• ✓

  Mitigation controls that are linked to specific risk factors to reduce the assessed risk.

  Why this is correct

  Mitigation controls in SAP Ariba Supplier Risk are actions or documents that reduce the likelihood or impact of a risk. Linking controls to risk factors allows the system to adjust the inherent risk score downward when controls are in place. Including mitigation controls in the risk exposure model ensures a more accurate residual risk assessment, which is essential for the manager's goal.