WSET Risk Management & Mitigation 3

Question 1

A négociant concerned about grape supply risk from a single appellation should adopt which procurement strategy?

Accepted Answer

Diversifying sourcing across multiple appellations and suppliers

Answer

Diversifying sourcing across multiple appellations spreads supply risk so that a poor harvest in one area does not cripple production.

Question 2

In the context of wine law compliance risk, a producer mislabeling a wine's vintage year faces which primary consequence?

Accepted Answer

Potential fines, market withdrawal, and loss of appellation rights

Answer

Mislabeling vintage years violates wine law and can result in regulatory fines, product recall, and revocation of appellation or export privileges.

Question 3

A winery operating in an earthquake-prone region should include which element in its business continuity plan?

Accepted Answer

Structural reinforcement of barrel halls and emergency response protocols

Answer

Structural reinforcement and emergency protocols address the physical and operational risks specific to earthquake-prone environments.

Question 4

Which approach best protects a wine business against the risk of a single key customer representing over 60% of revenue?

Accepted Answer

Actively developing a broader, diversified customer base

Answer

Diversifying the customer base reduces dependency concentration risk so that the loss of any one customer does not threaten business viability.

Question 5

In spirits production, 'angel's share' losses during maturation are an example of which category of business risk?

Accepted Answer

Operational/inventory shrinkage risk

Answer

Angel's share—alcohol lost to evaporation during barrel aging—is an operational inventory loss that must be factored into production cost planning.

(WSET) Wine & Spirit Education Trust Certification Practice Test