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
Which international standard specifically addresses Business Continuity Management Systems (BCMS)?
Answer: ISO 22301 – Business Continuity Management Systems
ISO 22301 is the international standard for business continuity management systems, providing a framework for planning, implementing, and improving continuity capabilities.
What is the 'Recovery Point Objective' (RPO) in logistics business continuity planning?
Answer: The maximum age of data that can be lost in a disruption without significant operational impact
RPO defines the maximum acceptable data loss measured in time, determining how frequently backups must occur to meet recovery requirements.
In the context of global logistics, 'political risk' refers to:
Answer: The risk that changes in government policy, regulations, or political instability will affect business operations
Political risk includes government instability, policy changes, trade sanctions, nationalization, and corruption that can disrupt international logistics operations and market access.
A logistics company purchases cargo insurance to protect against loss and damage in transit. This is an example of which risk management strategy?
Answer: Risk transfer
Purchasing insurance transfers the financial consequences of cargo loss or damage from the company to the insurer, making it a classic risk transfer strategy.
What is the role of Key Risk Indicators (KRIs) in logistics risk management?
Answer: They serve as early warning metrics that signal increasing risk exposure before a loss event
KRIs are forward-looking metrics that provide early signals when risk levels are increasing, enabling proactive intervention before a risk materializes into an actual loss.
During a major port strike, which action best demonstrates effective logistics risk management?
Answer: Activating pre-planned alternate routing through different ports or transportation modes
Pre-planned alternate routing demonstrates proactive risk management by having contingency options ready to execute immediately, minimizing disruption to customers and operations.
Which of the following best describes a 'black swan' event in the context of supply chain risk?
Answer: A rare, high-impact, and largely unpredictable event that can severely disrupt supply chains
Black swan events are characterized by their extreme rarity, severe impact, and the tendency to be rationalized as predictable only in hindsight, making them particularly challenging for traditional risk management.