CPL CPL Risk Management & Business Continuity

Question 1

Which risk management strategy involves shifting potential losses to a third party, such as an insurance provider or contract carrier?

Accepted Answer

Risk transfer

Answer

Risk avoidance

Answer

Risk acceptance

Answer

Risk mitigation

Question 2

A supply chain disruption that originates from a single supplier failure and cascades through multiple tiers is best described as which type of risk?

Accepted Answer

Supply-side risk

Answer

Demand-side risk

Answer

Geopolitical risk

Answer

Operational risk

Question 3

The primary purpose of a Business Continuity Plan (BCP) in logistics is to:

Accepted Answer

Ensure critical supply chain functions can continue during a disruption

Answer

Maximize profit during normal operations

Answer

Eliminate all identified supply chain risks

Answer

Reduce the number of logistics partners

Question 4

Which metric is used to measure how long an organization can tolerate a disruption before critical operations are irreparably affected?

Accepted Answer

Maximum Tolerable Downtime (MTD)

Answer

Recovery Time Objective (RTO)

Answer

Recovery Point Objective (RPO)

Answer

Mean Time Between Failures (MTBF)

Question 5

Dual sourcing in supply chain risk management primarily helps to:

Accepted Answer

Decrease dependence on a single supplier and reduce supply disruption risk

Answer

Reduce procurement costs through volume discounts

Answer

Eliminate the risk of quality defects

Answer

Simplify supplier relationship management

Question 6

A logistics risk assessment matrix typically plots risks based on which two dimensions?

Accepted Answer

Probability and impact

Answer

Cost and lead time

Answer

Supplier location and volume

Answer

Frequency and speed