CPSM CPSM Risk Management & Compliance 2

Question 1

A supply manager uses a risk heat map to prioritize supply chain risks. What two dimensions does a heat map typically plot?

Accepted Answer

Probability of occurrence and severity of impact

Answer

A risk heat map plots the likelihood (probability) of a risk occurring against its potential impact (severity), allowing supply managers to visually prioritize which risks require the most attention.

Question 2

Under the US Customs Trade Partnership Against Terrorism (C-TPAT) program, certified companies benefit from:

Accepted Answer

Reduced border inspections and expedited cargo processing

Answer

C-TPAT certification signals that a company meets CBP's supply chain security standards, earning benefits like fewer inspections and priority processing at US border crossings.

Question 3

Supply chain 'resilience' is best defined as:

Accepted Answer

The capacity to anticipate, prepare for, respond to, and adapt to disruptions

Answer

Supply chain resilience encompasses the full cycle of disruption management: anticipating risks, preparing mitigation strategies, responding effectively when disruptions occur, and adapting for future events.

Question 4

Which supply chain compliance framework is specifically focused on environmental and social responsibility in global supply chains?

Accepted Answer

SA8000

Answer

SA8000 is an international certification standard based on UN and ILO conventions that addresses labor rights, child labor, forced labor, working conditions, and management systems in global supply chains.

Question 5

A supply manager discovers that a Tier 2 supplier is using child labor. Under a robust supplier code of conduct, what is the most appropriate immediate action?

Accepted Answer

Notify the Tier 1 supplier and require them to address the issue through a corrective action plan

Answer

The buyer's most immediate and effective lever is the Tier 1 supplier relationship—requiring them to enforce the code of conduct with their sub-tier suppliers via a formal corrective action plan.

(CPSM) Certified Professional in Supply Management Practice Test

(CPSM) Certified Professional in Supply Management Practice Test

CPSM CPSM Risk Management & Compliance 2