Strategic Planning and Risk Management Flashcards
6 cards from real BEC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Strategic Planning and Risk Management flashcards as text
Which of the following is an example of a strategic risk?
Answer: A major competitor launching a disruptive technology that renders the company's products obsolete
Strategic risk arises from events or trends that threaten the organization's ability to achieve its long-term goals, such as competitive disruption, regulatory shifts, or changes in customer preferences.
Corporate social responsibility (CSR) in a business context means:
Answer: Companies integrating social and environmental concerns into operations beyond legal requirements
CSR refers to a company's voluntary commitment to operate ethically and contribute positively to society and the environment, beyond what is legally mandated.
A risk heat map (risk matrix) plots risks by:
Answer: Probability of occurrence versus potential impact
A risk heat map is a visual tool that plots each identified risk on a grid based on its likelihood of occurring and the severity of its impact, helping prioritize risk responses.
Vertical integration as a corporate strategy involves:
Answer: A company expanding into supply chain stages it previously outsourced (upstream or downstream)
Vertical integration is a strategy where a company takes ownership of its supply chain — backward integration (acquiring suppliers) or forward integration (acquiring distribution channels).
The balanced scorecard's 'learning and growth' perspective focuses on:
Answer: Employee skills, organizational culture, and IT infrastructure needed for future success
The learning and growth perspective addresses the organizational foundation — human capital, information systems, and culture — required to support the other three scorecard perspectives.
A company uses a PESTEL analysis to evaluate which category of external factors?
Answer: Political, Economic, Social, Technological, Environmental, and Legal factors
PESTEL analysis is a strategic framework for scanning the macro-environment by systematically examining Political, Economic, Social, Technological, Environmental, and Legal factors that affect the organization.