BCM Supply Chain Continuity & Third-Party Risk Management 3

Question 1

What typically qualifies a supplier as 'critical' within a BCM program?

Accepted Answer

Suppliers whose disruption would prevent the organization from meeting its Minimum Business Continuity Objective (MBCO)

Answer

A supplier is classified as critical when their disruption would prevent the organization from meeting its MBCO, making impact on core operational capability — not financial size or relationship tenure — the defining criterion.

Question 2

Which approach involves qualifying and contracting with alternative suppliers BEFORE a disruption occurs?

Accepted Answer

Proactive supplier pre-qualification and diversification

Answer

Proactive supplier pre-qualification involves identifying and vetting alternative suppliers during normal operations, enabling rapid activation of backup sourcing during a disruption without the delays of emergency vetting.

Question 3

What is 'supply chain mapping' in the context of BCM planning?

Accepted Answer

Documenting and visualizing all supplier tiers, interdependencies, and critical material flows

Answer

Supply chain mapping involves documenting all supplier tiers, interdependencies, and material flows to identify vulnerabilities, single points of failure, and critical paths requiring dedicated continuity planning.

Question 4

Which document formally specifies the continuity and recovery requirements that suppliers must contractually commit to meeting?

Accepted Answer

Supplier Business Continuity Agreement or BCM Schedule

Answer

A Supplier Business Continuity Agreement or BCM Schedule formally specifies recovery time objectives, testing requirements, reporting obligations, and notification procedures that suppliers must contractually commit to meeting.

Question 5

What does 'reshoring' mean as a supply chain resilience strategy?

Accepted Answer

Returning previously offshored production or sourcing back to the domestic market

Answer

Reshoring involves returning manufacturing or supply operations to the domestic market after previously being offshored, reducing geopolitical, logistical, and single-country concentration risks in the supply chain.

(BCM) Business Continuity Management Certification Practice Test

(BCM) Business Continuity Management Certification Practice Test

BCM Supply Chain Continuity & Third-Party Risk Management 3