BCM Supply Chain Continuity & Third-Party Risk Management 2

Question 1

What is 'concentration risk' in supply chain management?

Accepted Answer

Over-reliance on a single supplier, region, or country for critical inputs

Answer

The risk of managing too many suppliers in one procurement category

Answer

The danger of storing too much inventory in one warehouse location

Answer

The risk of having too many contracts with one legal entity

Question 2

In supply chain BCM, what defines the maximum time allowed to restore critical supply from an alternative source after a primary supplier fails?

Accepted Answer

Recovery Time Objective (RTO) applied to the supplier relationship

Answer

Supplier Lead Time

Answer

Mean Time Between Failures (MTBF)

Answer

Recovery Point Objective (RPO)

Question 3

What does 'fourth-party risk' refer to in supply chain continuity management?

Accepted Answer

Risk arising from your suppliers' own suppliers and service providers

Answer

Risk from regulatory bodies that oversee your suppliers

Answer

Financial risk from the fourth fiscal quarter

Answer

Risk from competitors who may disrupt your supply relationships

Question 4

Which type of contractual clause requires suppliers to maintain and test their own BCM plans as a condition of the business relationship?

Accepted Answer

Business Continuity Requirements clause

Answer

Force Majeure clause

Answer

Indemnification clause

Answer

Non-Disclosure Agreement (NDA)

Question 5

What is 'nearshoring' as a supply chain resilience strategy?

Accepted Answer

Relocating supply chain operations to a nearby country to reduce geographic risk

Answer

Storing inventory near major customer delivery locations

Answer

Using local port facilities to accelerate customs clearance

Answer

Partnering with nearby competitors during supply disruptions

Question 6

Which risk assessment approach evaluates a supplier's financial stability, operational resilience, and BCM capability simultaneously?

Accepted Answer

Third-Party Risk Assessment (TPRA)

Answer

Supplier Scorecard evaluation

Answer

Net Promoter Score (NPS) survey

Answer

ISO 9001 quality audit

Question 7

What does 'SCRM' stand for in business continuity and supply chain management?

Accepted Answer

Supply Chain Risk Management

Answer

Strategic Crisis Response Management

Answer

Systematic Continuity Risk Mitigation

Answer

Supplier Continuity and Recovery Matrix