GLP Risk Management & Business Continuity

Question 1

What is the primary purpose of a Business Continuity Plan (BCP) in logistics operations?

Accepted Answer

To ensure critical business functions continue during and after a disruption

Answer

To maximize quarterly profits during peak seasons

Answer

To standardize customs documentation procedures

Answer

To optimize last-mile delivery routing

Question 2

In risk assessment, what does a 'probability x impact' matrix help logistics managers do?

Accepted Answer

Prioritize risks based on their likelihood and potential consequences

Answer

Calculate shipping insurance premiums

Answer

Determine warehouse storage capacity needs

Answer

Negotiate favorable supplier payment terms

Question 3

A logistics company's Transportation Management System suffers a major cyberattack. What is the FIRST step in the incident response process?

Accepted Answer

Contain the breach to prevent it from spreading to additional systems

Answer

Notify all customers about potential shipment delays

Answer

Contact law enforcement and regulatory authorities immediately

Answer

Restore operations from the most recent known backup

Question 4

Which of the following best describes 'supply chain resilience'?

Accepted Answer

The capacity to anticipate, prepare for, and adapt to disruptions while maintaining continuity

Answer

The ability to maximize profit margins during high-demand periods

Answer

The exclusive use of domestic suppliers to avoid geopolitical risk

Answer

The use of advanced robotics to replace human warehouse workers

Question 5

What type of risk arises when a company relies heavily on a single supplier for a critical component?

Accepted Answer

Supplier dependency (concentration) risk

Answer

Market concentration risk

Answer

Regulatory compliance risk

Answer

Currency exchange rate risk

Question 6

In logistics risk management, what is the primary purpose of a risk 'heat map'?

Accepted Answer

To visualize and prioritize risks based on likelihood and potential impact

Answer

To track temperature-sensitive cold chain cargo in transit

Answer

To optimize energy consumption across distribution centers

Answer

To map seasonal demand fluctuations by geographic region

Question 7

What is the Recovery Time Objective (RTO) in business continuity planning?

Accepted Answer

The target time within which critical business processes must be restored after a disruption

Answer

The maximum acceptable delay in paying supplier invoices after a disruption

Answer

The interval between mandatory business continuity plan reviews

Answer

The minimum time required to qualify and onboard an emergency backup supplier