Risk Management Quiz

What is operational risk?

• The risk of losing customers due to poor marketing

• The risk of loss from failed internal processes, people, systems, or external events

• The risk associated with investing in new markets

• The risk of competition in the industry

Which tool is commonly used to measure risks?

• SWOT analysis

• Risk appetite statement

• Impact and likelihood matrix

• Market research survey

Which of the following is NOT a primary area affected by risk in business?

• Property exposures

• Personnel exposures

• Financial exposures

• Customer satisfaction

What is supply chain resilience?

• The ability to completely eliminate supply chain risks

• The ability of a supply chain to resist and recover from disruptions

• The process of increasing supply chain costs

• A strategy to reduce the number of suppliers

How can a company increase supply chain flexibility?

• By using concurrent instead of sequential processes

• By relying on a single supplier for all materials

• By reducing inventory levels to zero

• By avoiding technology integration

What is property exposure in risk management?

• Risks related to employee job performance

• Risks related to physical assets belonging to or entrusted to a business

• Risks associated with changing customer preferences

• Risks caused by inflation

Which of the following is an example of financial exposure?

• Damage to office buildings due to a natural disaster

• Loss of intellectual property and goodwill

• Employee dissatisfaction

• Delays in supply chain delivery

What is the purpose of supply chain visibility?

• Keeping supply chain information confidential

• End-to-end collaborative planning in the supply chain

• Reducing the number of suppliers

• Increasing transportation costs

What does supply chain velocity focus on?

• Streamlining and accelerating processes to reduce lead time

• Slowing down supply chain operations to avoid risk

• Increasing the number of intermediaries in the supply chain

• Reducing the quality of raw materials

Why should procurement strategy align with supplier relationships?

• To increase dependency on a single supplier

• To withstand supply chain disruptions and respond to demand fluctuations

• To increase the cost of production

• To reduce supplier collaboration