Level 5 exam — Legal & Compliance

Exam — fresh questions

12 questions to validate risks & disputes: mapping, litigation, alternative methods, insurance, monitoring and lawyer.
Answer everything, then click Check: your score and explanations will appear.

5.1 · Recall

1. What is the guiding principle of legal risk management?

Defending well once the problem occurs Prevent rather than suffer: identify, assess, prioritise, address upstream Insure everything Anticipate nothing

An anticipated risk costs less than a suffered problem.

5.1 · Application

2. How to prioritise with a limited budget?

Cross severity × likelihood and address serious risks first At random Ignore major risks Treat everything equally

Insure serious but unlikely risks; prevent likely ones.

5.2 · Recall

3. When should you go to court?

Always Never First As a last resort, after amicable settlement and a cool-headed assessment

Litigation is long, costly, uncertain and relationship-damaging.

5.2 · Application

4. Why keep evidence?

It is useless As a formality Because the court rules on what is PROVEN (“prove or perish”) To look serious

The burden of proof lies with whoever asserts; build the file upstream.

5.2 · Arbitration

5. Winning a lawsuit against an insolvent debtor…

Recovers the amount owed Is useless in practice Is always profitable Is impossible

Hence the cost/benefit/chances AND solvency assessment before acting.

5.3 · Recall

6. In mediation, who finds the solution?

The parties themselves, helped by a neutral third party The judge The arbitrator The mediator decides

An agreement found together is better accepted and preserves the relationship.

5.3 · Application

7. What is a settlement agreement?

A judgment Insurance A simple payment A contract settling the dispute through mutual concessions

“A bad settlement is better than a good lawsuit”; draft it carefully.

5.3 · Application

8. How does arbitration differ from mediation?

Mediation imposes a decision No difference Arbitrators DECIDE (award); the mediator only helps Arbitration is free

Arbitration is confidential and specialised, but costly.

5.4 · Recall

9. What should you read most carefully in an insurance contract?

The logo Exclusions, caps and deductibles (the actual scope) The date The broker's name

“I am insured” is not “well protected”.

5.4 · Application

10. Which insurance is often the most important?

Professional liability (damage to third parties) None Only directors' insurance Plant insurance

Sometimes mandatory; declare the risk accurately.

5.5 · Recall

11. When is it most cost-effective to consult a professional?

Never Only in court Once the problem has occurred Upstream (before signing/committing), to prevent

Legal culture makes you a better client.

5.5 · Arbitration

12. What is the key takeaway from this guide?

Winning every lawsuit Knowing all the law Spotting issues, applying the right reflexes and consulting at the right time Doing without any professional

Law varies by country and evolves: a guide does not replace tailored advice.

What's next?

Score ≥ 80%: move to Level 6 “In Practice” — V3 (cross-cutting cases and hands-on situations, NO exam).
Score < 80%: re-read the failed sections (mapping 5.1, evidence 5.2, arbitration 5.3, actual scope 5.4, upstream 5.5), re-read the explanations above, then retake the test.