Supply Chain Risk Management Flashcards

Which standard provides general principles and guidelines for enterprise risk management that can be applied to supply chains?

Answer: ISO 31000

ISO 31000 sets out principles and a framework for managing risk in any organization.

A business continuity plan (BCP) is mainly intended to:

Answer: Keep critical operations running during and after a disruption

A BCP lays out how essential functions continue or are restored when a disruption happens.

Which approach helps reduce the risk of counterfeit components entering the supply chain?

Answer: Sourcing from authorized distributors and using traceability

Authorized channels and traceability confirm the authenticity and origin of parts.

Postponement reduces supply chain risk mainly by:

Answer: Delaying final product configuration until demand is better known

Postponement keeps products generic longer, which lowers the risk of building the wrong mix.

Which scenario best illustrates a cybersecurity supply chain risk?

Answer: A vendor's compromised software update gives attackers network access

Attacks that enter through trusted vendor software or systems are a classic cyber supply chain risk.

Expected monetary value (EMV) of a risk is calculated as:

Answer: Probability multiplied by impact

EMV multiplies the probability of an event by its financial impact to measure exposure.

Which practice best supports early detection of emerging supplier financial distress?

Answer: Ongoing monitoring of supplier financial health and risk indicators

Continuous monitoring of financial and risk signals gives early warning before a supplier fails.