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According to ITIL 4 Supplier Management, which factor MOST influences the level of management attention a supplier receives?

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Key Facts: ITIL 4 CAI Exam

60 questions

Exam Length

PeopleCert CAI syllabus

65% (39/60)

Passing Score

PeopleCert CAI syllabus

90 minutes

Time Limit

PeopleCert CAI syllabus

5 practices

Bundled in CAI

PeopleCert (Relationship Mgmt, Supplier Mgmt, SLM, Continual Improvement, ISM)

3 years

Currentness Window

PeopleCert renewal policy

ITIL 4 Specialist: Collaborate, Assure and Improve (CAI) is a single 60-question, 90-minute PeopleCert exam covering five bundled practices: Relationship Management, Supplier Management, Service Level Management, Continual Improvement, and Information Security Management. The passing score is 65% (39/60). It is part of the ITIL 4 Practice Manager designation pathway. ITIL 4 Foundation is the standard prerequisite.

Sample ITIL 4 CAI Practice Questions

Try these sample questions to test your ITIL 4 CAI exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What is the PRIMARY purpose of the Relationship Management practice in ITIL 4?
A.To establish and nurture links between the organization and its stakeholders at strategic and tactical levels
B.To manage the financial aspects of supplier contracts
C.To define service level agreements with customers
D.To monitor infrastructure components supporting key relationships
Explanation: The purpose of Relationship Management is to establish and nurture links between the organization and its stakeholders at strategic and tactical levels. It focuses on understanding stakeholder needs and ensuring that services and relationships are aligned to those needs to facilitate the creation of value.
2In ITIL 4 Relationship Management, which of the following BEST describes the relationship lifecycle?
A.The series of stages from initial contact through active engagement to conclusion of a relationship
B.The technical lifecycle of a configuration item from procurement to disposal
C.The sequence of events in a service incident from detection to resolution
D.The phases of a supplier contract from evaluation to termination
Explanation: The relationship lifecycle in ITIL 4 Relationship Management describes the stages through which a relationship passes from initial contact and exploration, through active management and value creation, to potential conclusion. Understanding this lifecycle helps organizations appropriately tailor engagement activities at each stage.
3A service provider discovers that its key account customers feel underserved because the account managers only focus on contractual compliance rather than understanding evolving business needs. Which Relationship Management activity is MOST directly needed?
A.Engaging customers proactively to understand their strategic objectives and anticipated changes
B.Conducting regular service review meetings focused on SLA performance metrics
C.Renegotiating contract terms to include more detailed SLAs
D.Escalating the issue to the supplier management team
Explanation: Relationship Management requires proactive engagement to understand customer strategic objectives, not merely reactive compliance checking. Identifying evolving needs ensures that services can be adapted to create ongoing value, which is the core of a healthy customer relationship.
4Which of the following is a key metric used in Relationship Management to gauge the health of a customer relationship?
A.Net Promoter Score (NPS) and customer satisfaction surveys
B.Mean time to restore service
C.Patch compliance percentage across managed devices
D.Number of change requests raised per quarter
Explanation: NPS and customer satisfaction surveys are primary metrics in Relationship Management because they capture stakeholder perception and loyalty. Relationship Management focuses on the quality of interactions and mutual value, which these perception-based measures reflect.
5In ITIL 4, the Relationship Management practice is responsible for managing relationships with which categories of stakeholders?
A.Customers only
B.Customers and users only
C.Customers, users, and suppliers
D.Internal IT staff only
Explanation: Relationship Management in ITIL 4 is concerned with managing the relationships with all key stakeholders, including customers, users, and suppliers, as well as other internal and external parties. This broad remit ensures that all parties involved in value creation maintain productive and trust-based connections.
6What is the PRIMARY purpose of the Supplier Management practice in ITIL 4?
A.To ensure that the organization's suppliers and their performance are managed appropriately to support seamless quality products and services
B.To ensure all supplier invoices are paid on time
C.To negotiate the lowest possible price for all third-party services
D.To define the architecture of services sourced from external suppliers
Explanation: The purpose of Supplier Management is to ensure that suppliers and their performance are managed appropriately to support the provision of quality products and services. This includes strategy, selection, contracting, and ongoing performance oversight of all external suppliers.
7An organization classifies its suppliers using a strategic matrix based on risk and value. A supplier that provides commodity hardware and can be easily replaced is placed in which category?
A.Strategic supplier
B.Tactical supplier
C.Commodity supplier
D.Preferred supplier
Explanation: ITIL 4 Supplier Management uses a supplier categorization model that includes commodity suppliers for easily replaced, low-risk goods and services. Identifying suppliers by category helps organizations apply proportionate effort in managing each relationship.
8Which activity is part of Supplier Management's supplier evaluation and selection process?
A.Assessing potential suppliers against criteria including capability, financial stability, and cultural fit
B.Defining IT service targets that suppliers must meet
C.Resolving user incidents caused by third-party software
D.Updating the configuration management database after supplier delivery
Explanation: Supplier selection in ITIL 4 Supplier Management involves evaluating potential suppliers against multiple criteria: technical capability, financial stability, cultural fit, compliance posture, and strategic alignment. This thorough assessment reduces risk before a contract is signed.
9An organization relies on a single cloud provider for its mission-critical applications. The Supplier Management team is reviewing the risk profile. Which concern is MOST important to raise?
A.Single-supplier dependency creating concentration risk if the provider experiences an outage
B.The supplier's billing model is not itemized enough for chargeback purposes
C.The supplier does not use the same project management methodology as the organization
D.The supplier's support team is located in a different time zone
Explanation: Concentration risk from single-supplier dependency is a critical Supplier Management concern. If the sole provider fails or experiences a prolonged outage, the organization has no fallback. ITIL 4 Supplier Management expects organizations to identify, assess, and mitigate such risks as part of supplier strategy.
10In ITIL 4 Supplier Management, what document formally captures the agreed obligations, deliverables, and performance measures between the organization and a supplier?
A.Underpinning Contract (UC) or contract
B.Service Level Agreement (SLA)
C.Operational Level Agreement (OLA)
D.Service Improvement Plan (SIP)
Explanation: An Underpinning Contract (or simply 'contract') is the legal agreement that defines what a supplier must deliver, including performance obligations and remedies. SLAs are between service provider and customer; OLAs are internal agreements. Contracts govern the external supplier relationship.

About the ITIL 4 CAI Exam

ITIL 4 Specialist: Collaborate, Assure and Improve (CAI) is a bundled multi-practice exam in the ITIL 4 Practice Manager stream. It tests five ITIL 4 management practices in one 60-question, 90-minute sitting: Relationship Management, Supplier Management, Service Level Management, Continual Improvement, and Information Security Management. The official acronym is CAI. Candidates must score 65% (39/60) to pass.

Assessment

Closed-book, 60 multiple-choice questions in 90 minutes

Time Limit

90 minutes

Passing Score

65% (39/60 correct answers required)

Exam Fee

Approximately US$440–US$615 depending on bundle and region (verify at PeopleCert.org) (PeopleCert (AXELOS ITIL 4 framework owner))

ITIL 4 CAI Exam Content Outline

~20%

Relationship Management

Stakeholder categories (customer, user, supplier, sponsor), the relationship lifecycle, value co-creation, engagement plans, NPS and satisfaction metrics, and user-level vs. customer-level relationship activities.

~20%

Supplier Management

Supplier strategy, categorization matrix (strategic, tactical, commodity, strategic partner), evaluation and selection, underpinning contracts, KPIs, performance reviews, risk management, multi-sourcing, and supplier offboarding.

~20%

Service Level Management

SLIs, SLOs, SLAs, the watermelon effect, XLAs, service level targets, service reporting design, Service Improvement Plans, SLA negotiation, outcome-based targets, and utility vs. warranty.

~20%

Continual Improvement

The seven-step ITIL 4 Continual Improvement model, the Improvement Register, improvement methods (Lean, Kanban, Six Sigma, SWOT), embedding improvement culture at all organizational levels, and leadership commitment as a practice success factor.

~20%

Information Security Management

CIA triad (Confidentiality, Integrity, Availability), security policies and governance, preventive, detective, corrective, and compensating controls, risk assessment, information security incidents, security awareness training, and ISM integration with Change Enablement.

How to Pass the ITIL 4 CAI Exam

What You Need to Know

  • Passing score: 65% (39/60 correct answers required)
  • Assessment: Closed-book, 60 multiple-choice questions in 90 minutes
  • Time limit: 90 minutes
  • Exam fee: Approximately US$440–US$615 depending on bundle and region (verify at PeopleCert.org)

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

ITIL 4 CAI Study Tips from Top Performers

1Learn all five CAI practices as a unified set: Relationship and Supplier Management cover 'Collaborate'; SLM covers 'Assure'; Continual Improvement and ISM cover 'Improve' — this framing helps you understand exam question intent.
2For Service Level Management, practice the mathematics of availability targets: 99.9% monthly allows about 43 minutes downtime in a 30-day month — this is frequently tested.
3Memorize the seven steps of the ITIL 4 Continual Improvement model in sequence: Vision → Where are we now? → Where do we want to be? → How do we get there? → Take action → Did we get there? → How do we keep the momentum going?
4For ISM, know the CIA triad definitions and the three control types (preventive, detective, corrective) with a concrete example of each — scenario questions rely on these distinctions.
5For supplier categorization, remember the key differentiator is value and risk to the organization, not the supplier's size or contract length. Strategic suppliers are high-value and hard to replace; commodity suppliers are low-risk and easily switched.

Frequently Asked Questions

What is the ITIL 4 Specialist: Collaborate, Assure and Improve (CAI) exam?

The CAI exam is a bundled multi-practice PeopleCert exam in the ITIL 4 Practice Manager stream. It tests five ITIL 4 management practices—Relationship Management, Supplier Management, Service Level Management, Continual Improvement, and Information Security Management—in a single 60-question, 90-minute sitting.

What is the passing score for the ITIL 4 CAI exam?

The passing score for the ITIL 4 Specialist: Collaborate, Assure and Improve exam is 65%, which means candidates must answer at least 39 of the 60 questions correctly.

What is the format of the ITIL 4 CAI exam?

The exam is closed-book, delivered online via PeopleCert or at an authorized test center. It consists of 60 multiple-choice questions to be completed within 90 minutes. Candidates testing in a non-native language may be eligible for additional time.

What is the prerequisite for the ITIL 4 CAI exam?

ITIL 4 Foundation is the standard prerequisite published by PeopleCert. Familiarity with at least one other ITIL 4 Specialist module is recommended. ITSM experience in stakeholder, supplier, or service quality roles is strongly helpful.

What is the difference between ITIL 4 CAI and individual practice module exams?

Individual ITIL 4 practice module exams (such as ITIL 4 Specialist: Service Level Management standalone) test a single practice deeply. The CAI exam tests five practices together in one sitting, which is more time-efficient but requires breadth across all five areas. Both feed into the ITIL 4 Practice Manager designation.

What is the 'watermelon effect' in ITIL 4 Service Level Management?

The watermelon effect describes a situation where SLA metrics all show green (compliant) on the outside but real user experience is red (poor). It arises when technical metrics do not capture what customers actually value. ITIL 4 recommends supplementing SLAs with Experience Level Agreements (XLAs) and user satisfaction measures to avoid this phenomenon.