CPL Risk Management & Business Continuity Flashcards

Which document outlines roles, responsibilities, and procedures for maintaining logistics operations during an emergency?

Answer: Business Continuity Plan (BCP)

A Business Continuity Plan specifically documents how an organization will sustain critical functions and recover logistics operations during and after a disruption.

A 'black swan' event in supply chain risk management refers to:

Answer: A low-probability, high-impact event that is difficult to anticipate

Black swan events are rare, unpredictable occurrences with severe consequences that fall outside normal risk planning assumptions.

In supply chain resilience planning, 'redundancy' refers to:

Answer: Maintaining backup capacity, suppliers, or routes to absorb disruptions

Redundancy in supply chains means having backup systems, suppliers, or routes available so that operations can continue if one element fails.

Which of the following best describes a 'supply chain stress test'?

Answer: A simulated disruption scenario used to evaluate how well the supply chain can respond

A supply chain stress test simulates adverse conditions to identify vulnerabilities and evaluate the effectiveness of contingency plans.

The Recovery Time Objective (RTO) in logistics business continuity planning defines:

Answer: The target time within which a disrupted process must be restored to normal

RTO specifies the maximum acceptable length of time that a business process can be offline or disrupted before recovery must be achieved.

A logistics company performing a 'tabletop exercise' is most likely doing which of the following?

Answer: Walking through a hypothetical disruption scenario with key stakeholders to test response plans

A tabletop exercise is a discussion-based simulation where teams walk through a crisis scenario to test and improve their business continuity response.