CSCP Supply Chain Risk and Sustainability 1 — Questions and Answers
Question 1: What is the first step in a formal supply chain risk management process?
- Risk identification — systematically identifying all potential threats to supply chain continuity (Correct answer)
- Risk mitigation — implementing controls to reduce identified risks
- Risk monitoring — tracking risk indicators over time
- Risk transfer — purchasing insurance for supply chain disruptions
Correct answer: Risk identification — systematically identifying all potential threats to supply chain continuity
You cannot manage risks you haven't identified — risk identification is the foundational first step before assessment or mitigation.
Question 2: A 'risk heat map' in supply chain risk management plots risks by:
- Probability of occurrence versus severity of impact (Correct answer)
- Cost to mitigate versus time to recover
- Geographic location versus supplier tier
- Lead time versus order frequency
Correct answer: Probability of occurrence versus severity of impact
Risk heat maps visually prioritize risks by plotting likelihood against impact, helping management focus on high-probability, high-impact risks first.
Question 3: What is 'supply chain resilience'?
- The ability to anticipate, adapt to, and recover quickly from supply chain disruptions (Correct answer)
- Eliminating all risks through redundant supply chain structures
- The strength of relationships with strategic suppliers
- The financial reserves maintained to fund disruption recovery
Correct answer: The ability to anticipate, adapt to, and recover quickly from supply chain disruptions
Resilience encompasses both robustness (absorbing shocks) and agility (recovering quickly), allowing the supply chain to return to normal operations after disruption.
Question 4: Which of the following is an example of 'supply chain risk transfer'?
- Purchasing supply chain disruption insurance or requiring suppliers to carry performance bonds (Correct answer)
- Diversifying the supplier base to spread risk
- Building strategic inventory buffers to absorb demand shocks
- Implementing demand sensing to reduce forecast uncertainty
Correct answer: Purchasing supply chain disruption insurance or requiring suppliers to carry performance bonds
Risk transfer shifts the financial consequences of a risk event to another party — typically through insurance, contracts, or performance guarantees.
Question 5: In supply chain sustainability, 'Scope 3 emissions' refer to:
- Indirect greenhouse gas emissions from a company's supply chain, including suppliers and customer use of products (Correct answer)
- Emissions from company-owned vehicles and equipment
- Emissions from the company's own manufacturing operations
- Emissions from business travel and employee commuting
Correct answer: Indirect greenhouse gas emissions from a company's supply chain, including suppliers and customer use of products
Scope 3 covers all indirect value chain emissions — often the largest portion of a company's carbon footprint — from raw material extraction through product end-of-life.
Question 6: What is 'business continuity planning' (BCP) in the supply chain context?
- A documented plan for maintaining essential supply chain operations during and after a major disruption (Correct answer)
- A financial plan for funding supply chain expansion
- A regulatory compliance plan for trade and customs requirements
- A technology plan for upgrading supply chain software systems
Correct answer: A documented plan for maintaining essential supply chain operations during and after a major disruption
BCP documents specific procedures, alternative resources, and recovery priorities to sustain supply chain operations when primary facilities, systems, or suppliers are unavailable.
CSCP Supply Chain Risk and Sustainability 1
What is the first step in a formal supply chain risk management process?