CSCP FREE Certified Supply Chain Professional (CSCP) Supply Chain Risk Management Questions and Answers 2

Question 1

A manufacturer discovers that 70% of a critical component comes from a single supplier in a politically unstable region. Which risk mitigation strategy is MOST appropriate?

Accepted Answer

Develop alternative suppliers in different geographic regions

Answer

Increase safety stock levels for the component

Answer

Negotiate longer-term contracts with the existing supplier

Answer

Transfer the risk through insurance policies

Question 2

Which of the following is a key output of a supply chain risk assessment process?

Accepted Answer

A risk register that prioritizes threats by likelihood and impact

Answer

A supplier scorecard ranking vendors by cost

Answer

A demand forecast for the next fiscal quarter

Answer

A logistics route optimization plan

Question 3

What does the concept of 'risk appetite' refer to in supply chain risk management?

Accepted Answer

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

Answer

The total cost a company allocates to risk mitigation activities

Answer

The maximum number of suppliers a company is willing to manage

Answer

The frequency at which risk assessments are conducted

Question 4

During a supply chain disruption, a company activates its business continuity plan and shifts production to a pre-qualified backup facility. This is an example of which risk response strategy?

Accepted Answer

Risk mitigation

Answer

Risk avoidance

Answer

Risk acceptance

Answer

Risk transfer

Question 5

Which risk identification technique involves systematically analyzing each stage of the supply chain to uncover potential failure points?

Accepted Answer

Supply chain mapping

Answer

Monte Carlo simulation

Answer

Delphi method

Answer

Earned value analysis

Question 6

A global pandemic causes widespread port closures and labor shortages simultaneously. This type of event is BEST classified as which category of supply chain risk?

Accepted Answer

Systemic risk affecting multiple supply chain tiers

Answer

Operational risk limited to logistics providers

Answer

Financial risk related to currency fluctuation

Answer

Compliance risk due to changing trade regulations

A manufacturer discovers that 70% of a critical component comes from a single supplier in a politically unstable region.Which risk mitigation strategy is MOST appropriate?

A manufacturer discovers that 70% of a critical component comes from a single supplier in a politically unstable region.
Which risk mitigation strategy is MOST appropriate?