Supply Chain Management Risk Management 4

Question 1

What is 'dual sourcing' as a supply chain risk mitigation strategy?

Accepted Answer

Qualifying two suppliers for the same component to reduce single-source dependency

Answer

Dual sourcing maintains qualified alternative suppliers for critical components, ensuring supply continuity if the primary supplier experiences a disruption.

Question 2

Which type of supply chain disruption is most likely to be caused by a cyberattack on a logistics provider?

Accepted Answer

Cyber/technology risk

Answer

Cyberattacks targeting logistics systems, such as ransomware, can halt order processing, shipment tracking, and warehouse management operations.

Question 3

A risk assessment reveals a supplier has a 70% on-time delivery rate. The appropriate response is to:

Accepted Answer

Increase safety stock and develop an alternative supplier simultaneously

Answer

Poor supplier performance warrants both a short-term buffer (safety stock) and a long-term solution (qualifying alternatives) to balance continuity with strategic improvement.

Question 4

What does 'risk appetite' mean in the context of supply chain management?

Accepted Answer

The level of risk an organization is willing to accept in pursuit of its objectives

Answer

Risk appetite defines how much uncertainty an organization is prepared to accept when pursuing strategic goals, guiding decisions on risk mitigation investment.

Question 5

Which of the following is an example of an 'environmental risk' in supply chain management?

Accepted Answer

A hurricane disrupting a major Gulf Coast port

Answer

Environmental risks include natural disasters like hurricanes, floods, and earthquakes that can disrupt infrastructure, logistics, and supplier operations.

Supply Chain Management Practice Test

Supply Chain Management Practice Test

Supply Chain Management Risk Management 4