BCI Supply Chain & Vendor Management Flashcards

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

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

A supply chain risk assessment identifies disruptions that could impair the organization's ability to deliver products or services.

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

Answer: Maximum Tolerable Period of Disruption (MTPD)

MTPD defines the outer limit of how long a disruption—including one caused by a key supplier—can last before causing unacceptable harm.

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

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

A BCA determines if a supplier can sustain or rapidly restore services after a disruption within tolerances set by your organization.

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

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

A supply chain SPOF creates extreme vulnerability because any disruption to that one source has no fallback option.

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

Answer: Diversifying suppliers across multiple geographic regions and qualifying alternative vendors

Geographic and vendor diversification reduces the likelihood that a single event can knock out all sources of a critical input simultaneously.

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

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

Embedding BC requirements in contracts ensures suppliers are contractually obligated to maintain and share recovery capabilities.