GLP Risk Management & Business Continuity 3

Question 1

Which international standard specifically addresses Business Continuity Management Systems (BCMS)?

Accepted Answer

ISO 22301 – Business Continuity Management Systems

Answer

ISO 9001 – Quality Management Systems

Answer

ISO 14001 – Environmental Management Systems

Answer

ISO 45001 – Occupational Health and Safety

Question 2

What is the 'Recovery Point Objective' (RPO) in logistics business continuity planning?

Accepted Answer

The maximum age of data that can be lost in a disruption without significant operational impact

Answer

The geographic location where operations will be relocated during a crisis

Answer

The minimum headcount required to resume basic logistics operations

Answer

The financial reserve required to cover revenue losses during a business disruption

Question 3

In the context of global logistics, 'political risk' refers to:

Accepted Answer

The risk that changes in government policy, regulations, or political instability will affect business operations

Answer

Internal company politics affecting day-to-day operational decisions

Answer

Trade union negotiations that could disrupt warehouse labor availability

Answer

The risk of executive management turnover affecting strategic direction

Question 4

A logistics company purchases cargo insurance to protect against loss and damage in transit. This is an example of which risk management strategy?

Accepted Answer

Risk transfer

Answer

Risk avoidance

Answer

Risk reduction

Answer

Risk acceptance

Question 5

What is the role of Key Risk Indicators (KRIs) in logistics risk management?

Accepted Answer

They serve as early warning metrics that signal increasing risk exposure before a loss event

Answer

They measure actual financial losses after a risk event has occurred

Answer

They rank historical risk events by total financial impact for insurance purposes

Answer

They calculate the exact statistical probability of future risk events

Question 6

During a major port strike, which action best demonstrates effective logistics risk management?

Accepted Answer

Activating pre-planned alternate routing through different ports or transportation modes

Answer

Waiting for the strike to resolve before resuming any outbound shipments

Answer

Immediately canceling all affected customer contracts to avoid penalties

Answer

Increasing safety stock by 500% across all product lines to cover potential shortfalls

Question 7

Which of the following best describes a 'black swan' event in the context of supply chain risk?

Accepted Answer

A rare, high-impact, and largely unpredictable event that can severely disrupt supply chains

Answer

A predictable high-frequency risk with a well-established mitigation plan in place

Answer

A minor operational disruption that occurs routinely in normal daily operations

Answer

A planned simulation used to test emergency response procedures and BCP effectiveness