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
Supply chain visibility tools help manage risk primarily by:
Answer: Providing real-time data on inventory, shipments, and supplier status to detect disruptions early
Real-time visibility platforms give supply chain managers early warning of delays, shortages, or disruptions so they can respond proactively.
Which of the following events would be classified as a 'force majeure' supply chain disruption?
Answer: An earthquake destroying a key manufacturing facility
Force majeure refers to extraordinary, unforeseeable events—such as natural disasters—beyond the control of the parties involved, typically excusing contractual non-performance.
A company decides to hold a strategic inventory reserve at a neutral warehouse in case its primary supplier fails. This tactic is best described as:
Answer: Supply chain hedge inventory
Hedge inventory is safety stock held specifically as insurance against supply disruptions, separate from regular cycle or safety stock calculations.
ESG (Environmental, Social, and Governance) risk in supply chains refers primarily to:
Answer: Risks arising from unsustainable practices, labor violations, or poor governance in the supply chain
ESG risk covers exposure to reputational, legal, and operational harm from suppliers engaging in environmentally harmful practices, labor abuses, or governance failures.
Which supply chain risk management document details the step-by-step actions teams must take when a specific risk event (e.g., port closure) occurs?
Answer: Risk response playbook (contingency plan)
A risk response playbook (or contingency plan) pre-defines who does what, when, and how when a specific risk scenario materializes.
The concept of 'supply chain agility' in risk management means:
Answer: The ability to rapidly reconfigure supply chain operations in response to unexpected changes
Agility refers to a supply chain's capacity to sense disruptions quickly and restructure sourcing, production, or logistics rapidly to maintain service levels.
Which international standard provides guidance for implementing an organizational risk management framework, commonly applied to supply chain risk?
Answer: ISO 31000
ISO 31000 provides principles and guidelines for risk management applicable across all types of organizations and industries, including supply chain risk.