C_ARSUM Ariba Supplier Management Practice Question
What is the primary function of the 'Supplier Risk' module in SAP Ariba?
⚠ Common exam trap
Candidates often mistake this module as a tool for managing supplier performance or spend, failing to realize it is specifically focused on external risk monitoring and proactive threat mitigation.
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
✓
To monitor and mitigate potential supply chain threats.
The Supplier Risk module provides continuous monitoring of supplier-related threats, such as financial instability, geopolitical risks, and regulatory compliance issues. By aggregating external data feeds and internal audit reports, it allows companies to proactively identify and mitigate risks before they impact the supply chain. This is crucial for avoiding costly disruptions and protecting the organization's brand and operational continuity.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
To negotiate lower pricing with high-risk suppliers.
Why it's wrong here
Negotiating pricing is a function of the Sourcing or Contracting modules, not the Risk module. While risk information might inform a negotiation strategy, the Risk module's primary purpose is the identification and monitoring of threats, not the tactical execution of price-based procurement activities or contract negotiations.
- ✓
To monitor and mitigate potential supply chain threats.
Why this is correct
The primary role of the Risk module is to track various risk factors—financial, legal, environmental, and reputational—associated with suppliers. It uses integrated external data sources to provide real-time alerts, allowing procurement professionals to respond rapidly to emerging threats and take corrective actions to prevent supply chain disruption.
- ✗
To manage the technical integration of supplier invoices.
Why it's wrong here
Invoice integration is managed through the SAP Ariba Network and the invoicing module. This is a transactional and financial process focused on payment processing and accounts payable efficiency, which has no functional link to the identification or assessment of supplier-related operational or compliance risks.
- ✗
To create and store legal contract templates.
Why it's wrong here
Contract management is handled by the SAP Ariba Contracts module. Storing legal documents and generating templates is a core feature of that module, which focuses on legal lifecycle and compliance with contract terms, whereas the Risk module is dedicated exclusively to external threat monitoring and supplier health tracking.
About these practice questions
One of 250 original C_ARSUM practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
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.