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CIPS Advanced Contract & Financial Management : L5M4

Exam Code: L5M4

Exam Name: Advanced Contract & Financial Management

Updated: Jun 22, 2026

Number: 43 Q&As with Testing Engine

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CIPS L5M4 Exam Syllabus Topics:
TopicDetails
Topic 1
  • Understand and apply tools and techniques to measure and develop contract performance in procurement and supply: This section of the exam measures the skills of procurement and supply chain managers and covers how to apply tools and key performance indicators (KPIs) to monitor and improve contract performance. It emphasizes the evaluation of metrics like cost, quality, delivery, safety, and ESG elements in supplier relationships. Candidates will explore data sources and analysis methods to improve performance, including innovations, time-to-market measures, and ROI.
Topic 2
  • Analyse and apply financial and performance measures that can affect the supply chain: This section of the exam measures the skills of procurement and supply chain managers and covers financial and non-financial metrics used to evaluate supply chain performance. It addresses performance calculations related to cost, time, and customer satisfaction, as well as financial efficiency indicators such as ROCE, IRR, and NPV. The section evaluates how stakeholder feedback influences performance and how feedback mechanisms can shape continuous improvement.
Topic 3
  • Understand and apply financial techniques that affect supply chains: This section of the exam measures the skills of procurement and supply chain managers and covers financial concepts that impact supply chains. It explores the role of financial management in areas like working capital, project funding, WACC, and investment financing. The section also examines how currency fluctuations affect procurement, including the use of foreign exchange tools like forward contracts and derivative instruments.
Topic 4
  • Understand and apply the concept of strategic sourcing: This section of the exam measures the skills of procurement and supply chain managers and covers the strategic considerations behind sourcing decisions. It includes an assessment of market factors such as industry dynamics, pricing, supplier financials, and ESG concerns. The section explores sourcing options and trade-offs, such as contract types, competition, and supply chain visibility.

Reference: https://www.cips.org/qualifications/advanced-diploma-in-procurement-supply/advanced-contract-and-financial-management

L5M4 Related Exams
L5M5 - Managing Ethical Procurement and Supply (L5M5)
L5M3 - Managing Contractual Risk
L5M7 - Achieving Competitive Advantage Through the Supply Chain (L5M7)
L5M10 - Logistics Management
L5M9 - Operations Management
Related Certifications
CIPS Level 3 Advanced Certificate in Procurement and Supply Operations
Level 4 Diploma in Procurement and Supply
CIPS Level 5 Advanced Diploma in Procurement and Supply
CIPS Level 4 Diploma in Procurement and Supply
CIPS Certifications
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