Risk Management and Resilience Quiz

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

• Natural disasters affecting transportation routes

• A supplier’s failure to meet delivery deadlines

• Political instability in a supplier's country

• A transportation strike disrupting delivery schedules

What does "supplier diversification" help mitigate in a supply chain?

• Financial risk

• Cybersecurity risk

• Geopolitical risk

• Supplier-related disruptions

Which of the following is a characteristic of a resilient supply chain?

• A) A heavy reliance on a single supplier

• B) The ability to quickly recover from disruptions

• C) Minimizing safety stock to reduce inventory costs

• D) Ignoring potential future risks

What is the primary purpose of a "contingency plan" in crisis management?

• To maximize profits during disruptions

• To provide a backup supplier in case of failure

• To define predefined actions for responding to potential disruptions

• To communicate with stakeholders during routine operations

Which of the following is NOT typically included in a business continuity plan (BCP)?

• Crisis response strategies

• Recovery time objectives (RTO)

• Inventory management techniques

• Emergency contact details for key personnel

A resilient supply chain can adapt to disruptions by quickly sourcing alternative suppliers or transportation routes.

• True

• False

Cybersecurity risks are primarily concerned with physical disruptions to the supply chain, such as natural disasters or traffic accidents.

• True

• False

"Force majeure" is a legal term that releases parties from contract obligations in the event of unforeseen circumstances, such as natural disasters or strikes.

• True

• False

Safety stock is maintained to ensure that operations continue smoothly during supply chain disruptions caused by demand fluctuations or delivery delays.

• True

• False

Scenario planning involves preparing for multiple potential disruptions and testing response strategies to improve supply chain resilience.

• True

• False