CLA Risk Management & Regulatory Compliance

Question 1

Supply chain risk management (SCRM) begins with which foundational step?

Accepted Answer

Identifying and mapping potential risks across the entire supply chain

Answer

Purchasing supply chain disruption insurance

Answer

Reducing the number of active suppliers to cut costs

Answer

Implementing a new TMS to improve visibility

Question 2

A business continuity plan (BCP) in logistics is designed to:

Accepted Answer

Ensure critical supply chain operations can continue or recover quickly after a disruptive event

Answer

Maximize carrier rate discounts during high-volume periods

Answer

Standardize warehouse picking methods across all facilities

Answer

Reduce product returns through better packaging design

Question 3

Incoterms (International Commercial Terms) published by the ICC primarily define:

Accepted Answer

The responsibilities, costs, and risk transfer points between buyer and seller in international trade

Answer

Customs duty rates for specific product categories

Answer

Carrier liability limits for ocean freight

Answer

Safety regulations for hazardous material shipments

Question 4

The Customs-Trade Partnership Against Terrorism (C-TPAT) program in the US requires participating importers to:

Accepted Answer

Implement supply chain security measures and validate the security practices of their foreign partners

Answer

Pay lower customs duties in exchange for faster clearance

Answer

Use only US-flagged vessels for ocean imports

Answer

File all customs entries 48 hours before vessel departure

Question 5

The Harmonized System (HS) code is used in international trade to:

Accepted Answer

Classify products for customs purposes and determine applicable duty rates

Answer

Calculate insurance premiums for ocean cargo

Answer

Identify approved carriers for government freight contracts

Answer

Measure on-time delivery performance across trade lanes

Question 6

Which type of supply chain risk arises from a single-source supplier being unable to deliver due to a natural disaster or facility fire?

Accepted Answer

Supply disruption risk

Answer

Demand variability risk

Answer

Currency fluctuation risk

Answer

Compliance risk