Practice Test Geeks(BCM) Business Continuity Management Certification Practice Test
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Supply Chain Continuity & Third-Party Risk Management Flashcards

7 cards from real BCM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. What is the primary purpose of conducting a Business Impact Analysis (BIA) for the supply chain?

    Answer: To quantify the impact of supplier disruptions on business operations

    A supply chain BIA quantifies the operational and financial impact of supplier disruptions, enabling organizations to prioritize critical supplier relationships and allocate recovery resources.

  2. Which term describes the maximum acceptable time a business can function without a critical supplier before suffering irreversible harm?

    Answer: Maximum Tolerable Period of Disruption (MTPD)

    MTPD defines the maximum time a business can operate without a critical supplier before experiencing consequences that cannot be overcome, setting the planning horizon for supplier continuity strategies.

  3. What does 'dual sourcing' mean in supply chain continuity planning?

    Answer: Qualifying two or more suppliers for the same critical component or service

    Dual sourcing involves qualifying multiple suppliers for critical inputs, ensuring business operations can continue if one supplier experiences a disruption by switching to the pre-qualified alternative.

  4. Which ISO standard specifically addresses supply chain security and resilience management systems?

    Answer: ISO 28000

    ISO 28000 specifies requirements for a security management system for the supply chain, providing a framework to manage supply chain security and resilience risks comprehensively.

  5. In supply chain BCM, what defines a 'Tier 1 supplier'?

    Answer: A supplier that directly provides goods or services to your organization

    Tier 1 suppliers are those with a direct contractual relationship with your organization, providing goods or services directly rather than through intermediaries, making them the first layer of supply chain risk.

  6. What document should a critical supplier provide to demonstrate their BCM capability to your organization?

    Answer: Business Continuity Plan or Business Continuity Statement

    A supplier's Business Continuity Plan or Business Continuity Statement demonstrates their documented capability to maintain operations and service delivery during a disruption, providing assurance to dependent organizations.

  7. Which inventory strategy maintains buffer stock specifically to absorb supply chain disruption impacts?

    Answer: Safety stock or strategic inventory

    Safety stock (strategic inventory) provides a resilience buffer against supply chain disruptions by maintaining excess inventory of critical materials, allowing continued operations while alternative sourcing is secured.