GLP Risk Management & Business Continuity 3

Question 1

Which international standard specifically addresses Business Continuity Management Systems (BCMS)?

Accepted Answer

ISO 22301 – Business Continuity Management Systems

Answer

ISO 22301 is the international standard for business continuity management systems, providing a framework for planning, implementing, and improving continuity capabilities.

Question 2

What is the 'Recovery Point Objective' (RPO) in logistics business continuity planning?

Accepted Answer

The maximum age of data that can be lost in a disruption without significant operational impact

Answer

RPO defines the maximum acceptable data loss measured in time, determining how frequently backups must occur to meet recovery requirements.

Question 3

In the context of global logistics, 'political risk' refers to:

Accepted Answer

The risk that changes in government policy, regulations, or political instability will affect business operations

Answer

Political risk includes government instability, policy changes, trade sanctions, nationalization, and corruption that can disrupt international logistics operations and market access.

Question 4

A logistics company purchases cargo insurance to protect against loss and damage in transit. This is an example of which risk management strategy?

Accepted Answer

Risk transfer

Answer

Purchasing insurance transfers the financial consequences of cargo loss or damage from the company to the insurer, making it a classic risk transfer strategy.

Question 5

What is the role of Key Risk Indicators (KRIs) in logistics risk management?

Accepted Answer

They serve as early warning metrics that signal increasing risk exposure before a loss event

Answer

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.

GLP - Global Logistics Professional Practice Test

GLP - Global Logistics Professional Practice Test

GLP Risk Management & Business Continuity 3