C_ARSUM Ariba Supplier Management Practice Question
Which mechanism ensures that a supplier's risk profile is updated whenever a major negative news alert is detected in the system?
⚠ Common exam trap
Test-takers frequently assume that manual periodic audits by procurement managers are required to refresh supplier risk profiles, overlooking built-in real-time integration capabilities.
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
✓
Automated risk score updates.
The integration between SAP Ariba and third-party risk intelligence providers allows for automated updates. When a risk signal is triggered, the system updates the supplier's risk score and can trigger workflows to notify the responsible procurement manager. This proactive monitoring is essential for managing the supply chain, as it allows companies to identify and react to potential threats in real-time, thereby protecting the business from operational, financial, and reputational damage.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Manual re-qualification.
Why it's wrong here
Manual re-qualification is too slow and unreliable to address urgent risk alerts. Organizations need real-time data to effectively mitigate threats. Relying on a manual process means the company would likely react to significant risks only after the impact has already occurred, which is insufficient for modern risk management.
- ✓
Automated risk score updates.
Why this is correct
Automated integration with risk intelligence services allows the system to receive updates as soon as negative information is detected. This updates the risk score instantly and can trigger internal notifications, allowing procurement managers to take immediate action rather than waiting for manual audits or periodic reviews to catch issues.
- ✗
Supplier self-reporting.
Why it's wrong here
Supplier self-reporting is inherently biased and unreliable when it comes to reporting negative news about themselves. A supplier is unlikely to voluntarily inform their buying organization of a financial or regulatory crisis. Therefore, automated third-party monitoring is the only effective way to ensure timely risk data collection.
- ✗
Annual review process.
Why it's wrong here
An annual review process is far too infrequent to catch volatile risk events. Significant threats like bankruptcy or legal trouble can develop in days. Relying on an annual cycle for risk management leaves the organization exposed to long periods of undetected risk, which contradicts the goal of real-time monitoring.
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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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