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

Effective SCRM starts with a comprehensive risk assessment that identifies vulnerabilities at each node and link of the supply chain before mitigation strategies are developed.

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

A BCP documents the procedures, resources, and responsibilities needed to maintain or restore logistics operations after events such as natural disasters or supplier failures.

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

Incoterms provide standard three-letter codes (e.g., FOB, CIF, DDP) that specify who pays for freight, insurance, and customs, and exactly where risk transfers from seller to buyer.

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

C-TPAT is a voluntary CBP program that provides trade benefits to companies that meet strict supply chain security standards and vet their overseas partners.

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

HS codes are internationally standardized numerical codes assigned to every product category, used by customs authorities worldwide to levy duties and collect trade statistics.

CLA - Certified Logistics Analyst Practice Test

CLA - Certified Logistics Analyst Practice Test

CLA Risk Management & Regulatory Compliance