BCI Supply Chain & Vendor Management Flashcards

What is 'fourth-party risk' in the context of supply chain continuity?

Answer: Risk arising from your supplier's own suppliers (sub-contractors), which can still affect your operations

Fourth-party risk acknowledges that disruptions deep in the supply chain, beyond direct suppliers, can cascade and affect your organization.

Which tool is commonly used to map and visualize supply chain dependencies for BC purposes?

Answer: Supply Chain Mapping / Value Stream Mapping

Supply chain mapping identifies all suppliers, dependencies, and critical nodes, making vulnerabilities visible for BC planning.

When should a Business Continuity Manager re-evaluate the organization's critical supplier list?

Answer: After significant organizational changes, new product launches, or major supplier incidents

The supplier landscape changes constantly, so triggers such as organizational changes or supplier incidents must prompt reassessment.

What is the purpose of a 'warm standby' supplier arrangement in supply chain BC?

Answer: An alternative supplier who is pre-qualified and can be activated quickly but is not in active production for you

A warm standby supplier reduces activation lead time compared to a cold standby, balancing cost and recovery speed.

Which BCI principle supports including supplier BC performance metrics in regular management reviews?

Answer: Embedding BC into organizational culture and governance ensures ongoing supply chain resilience

The BCI Good Practice Guidelines emphasize that BC must be embedded across governance, including supply chain oversight.

During an exercise involving a supplier failure scenario, what is the most important outcome to test?

Answer: Whether your organization can activate alternative sourcing and maintain critical activities within acceptable downtime limits

Exercises validate that alternative arrangements are workable and that critical activities can continue within your MTPD.