Risk Management & Business Continuity Flashcards
7 cards from real GLP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Risk Management & Business Continuity flashcards as text
What is the primary purpose of a Business Continuity Plan (BCP) in logistics operations?
Answer: To ensure critical business functions continue during and after a disruption
A BCP ensures essential logistics operations can continue or quickly resume following a disruption such as a natural disaster, cyberattack, or pandemic.
In risk assessment, what does a 'probability x impact' matrix help logistics managers do?
Answer: Prioritize risks based on their likelihood and potential consequences
Multiplying probability by impact allows logistics managers to rank risks and focus mitigation resources on the most critical threats.
A logistics company's Transportation Management System suffers a major cyberattack. What is the FIRST step in the incident response process?
Answer: Contain the breach to prevent it from spreading to additional systems
Containment is the first priority in incident response to stop the attack from spreading and causing additional damage before remediation begins.
Which of the following best describes 'supply chain resilience'?
Answer: The capacity to anticipate, prepare for, and adapt to disruptions while maintaining continuity
Supply chain resilience encompasses a company's ability to detect, withstand, and recover from disruptions while maintaining acceptable performance levels.
What type of risk arises when a company relies heavily on a single supplier for a critical component?
Answer: Supplier dependency (concentration) risk
Supplier concentration risk occurs when over-reliance on one supplier creates vulnerability if that supplier experiences disruptions, financial difficulties, or capacity constraints.
In logistics risk management, what is the primary purpose of a risk 'heat map'?
Answer: To visualize and prioritize risks based on likelihood and potential impact
A risk heat map visually plots risks by their probability and impact, helping management focus attention and resources on the most critical threats.
What is the Recovery Time Objective (RTO) in business continuity planning?
Answer: The target time within which critical business processes must be restored after a disruption
RTO defines the maximum tolerable downtime for a business process, guiding recovery priorities and resource allocation in continuity planning.