Certified Supply Chain Professional CSCP Practice Certified Supply Chain Professional (CSCP) Supply Chain Risk Management 1

Question 1

A global retailer uses a risk heat map to prioritize supply chain threats. Which two dimensions are plotted on a standard risk heat map?

Accepted Answer

Probability and impact

Answer

A risk heat map plots likelihood (probability) against consequence (impact) to visually prioritize which risks require the most urgent attention and resources.

Question 2

Which supply chain risk management technique involves holding extra inventory specifically to buffer against demand or supply uncertainty?

Accepted Answer

Safety stock

Answer

Safety stock is buffer inventory held beyond expected demand to guard against variability in supply lead times or demand fluctuations, directly absorbing supply chain uncertainty.

Question 3

A CSCP candidate is evaluating a supplier's financial health as part of a risk assessment. Which financial metric is MOST directly relevant to assessing the supplier's ability to survive a demand downturn?

Accepted Answer

Current ratio

Answer

The current ratio (current assets divided by current liabilities) measures short-term liquidity, indicating whether a supplier can meet near-term obligations during a revenue downturn.

Question 4

Which of the following BEST describes the concept of 'supply chain resilience'?

Accepted Answer

The ability to recover quickly and return to normal operations after a disruption

Answer

Supply chain resilience is the ability to anticipate, adapt to, and recover from disruptions, returning to the original or a new, better operating state as quickly as possible.

Question 5

A company signs a contract requiring its supplier to carry product liability insurance and name the company as an additional insured. This is an example of which supply chain risk strategy?

Accepted Answer

Risk transfer

Answer

Transferring financial liability through insurance or contractual clauses shifts the economic burden of a risk event to another party (insurer or supplier), which is the definition of risk transfer.

Certified Supply Chain Professional CSCP Practice Practice Test

Certified Supply Chain Professional CSCP Practice Practice Test

Certified Supply Chain Professional CSCP Practice Certified Supply Chain Professional (CSCP) Supply Chain Risk Management 1