Supply Chain Risk Management Flashcards
7 cards from real Supply Chain and Logistics practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Supply Chain Risk Management flashcards as text
Which framework uses a heat map plotting likelihood versus impact to prioritize supply chain risks?
Answer: Risk probability-impact matrix
A risk probability-impact matrix categorizes risks by their likelihood of occurrence and potential severity, helping teams focus mitigation resources.
Geopolitical risk in supply chain management includes which of the following?
Answer: Trade tariffs and export controls affecting cross-border sourcing
Geopolitical risk encompasses government actions such as tariffs, sanctions, and export controls that can disrupt international supply flows.
A Business Continuity Plan (BCP) in supply chain management is primarily designed to:
Answer: Ensure critical supply chain functions continue during and after a major disruption
A BCP outlines procedures to maintain or quickly restore supply chain operations when a significant disruption occurs.
Which metric measures the time required for a supply chain to return to normal performance after a disruption?
Answer: Time-to-recover (TTR)
Time-to-recover (TTR) quantifies how long it takes for supply chain performance to fully bounce back after a disruptive event.
Cybersecurity threats are increasingly important in supply chain risk because:
Answer: Digital systems and data sharing across partners create vulnerabilities to hacking and ransomware
Modern supply chains rely on interconnected digital platforms; a cyberattack on any node—such as an ERP system—can halt orders, shipments, and payments across the network.
Which supply chain risk management approach involves identifying critical nodes whose failure would most severely disrupt the entire network?
Answer: Critical path and node analysis
Critical node analysis identifies the suppliers, facilities, or routes whose failure would cause the greatest disruption, so mitigation efforts can be prioritized there.
Near-shoring as a risk mitigation strategy refers to:
Answer: Moving production or sourcing to nearby countries to reduce lead times and geopolitical exposure
Near-shoring relocates supply chain activities to neighboring or regionally close countries, balancing cost savings with reduced lead times and lower geopolitical risk compared to distant offshore sources.