BCI BCI Supply Chain & Vendor Management

Question 1

What is the primary purpose of a Business Continuity Supply Chain Risk Assessment?

Accepted Answer

To identify and evaluate threats that could disrupt the supply chain and impact business operations

Answer

To negotiate better pricing with suppliers

Answer

To evaluate the financial stability of vendors only

Answer

To determine the number of suppliers needed for production

Question 2

Which BCI Good Practice Guidelines term refers to the maximum time a supplier disruption can be tolerated before it significantly impacts your organization?

Accepted Answer

Maximum Tolerable Period of Disruption (MTPD)

Answer

Recovery Time Objective (RTO)

Answer

Supplier Dependency Index (SDI)

Answer

Critical Supplier Threshold (CST)

Question 3

What does a Supplier Business Continuity Assessment (BCA) primarily evaluate?

Accepted Answer

Whether a supplier has adequate BC plans and capabilities to recover within your required timeframes

Answer

The pricing competitiveness of a supplier's products

Answer

The geographic diversity of a supplier's warehouse locations

Answer

A supplier's carbon footprint and sustainability record

Question 4

In BC vendor management, what is a 'single point of failure' (SPOF)?

Accepted Answer

A supplier that is the only source for a critical component with no viable alternative

Answer

A contract clause that limits liability to a single incident

Answer

A software system that only one employee knows how to operate

Answer

A backup supplier who has never been tested in a real disruption

Question 5

Which strategy best addresses supply chain concentration risk according to BCI guidance?

Accepted Answer

Diversifying suppliers across multiple geographic regions and qualifying alternative vendors

Answer

Stockpiling large inventories to outlast any supplier outage

Answer

Requiring all suppliers to carry the same insurance policy

Answer

Conducting annual supplier audits without requiring corrective action plans

Question 6

What should a Business Continuity Manager include in a supplier contract to support organizational resilience?

Accepted Answer

BC and DR requirements, notification obligations, and the right to audit the supplier's BC plans

Answer

Only standard payment terms and service-level agreements

Answer

A clause prohibiting the supplier from working with competitors

Answer

Annual price escalation caps and delivery timeframes only