Supply Chain Risk Management Quiz

Which practice is emphasized to reduce strategic risk in new product development?

• Rapid product launch without testing

• Integrating risk management best practices into product development processes

• Ignoring intellectual property protection

• Outsourcing risk analysis

Which of the following best describes supply market volatility?

• Predictable and stable supplier pricing

• Fluctuations in supply market conditions causing uncertainty in supply chain costs and availability

• Consistent supply delivery times

• Fixed contractual supplier pricing

Supply risk as an operational risk refers to:

• Variability in customer demand

• Failure or delay of suppliers to deliver required materials

• Errors in internal processes

• Financial insolvency of customers

ISO standards relevant to supply chain risk management provide:

• Guidelines and frameworks for managing quality, environmental, and risk management

• Financial auditing standards

• Marketing and sales protocols

• Employee recruitment standards

The first step in the Business Continuity Life Cycle is:

• Process re-engineering

• Testing contingency plans

• Risk assessment and business impact analysis

• Auditing financial statements

A failure in product development can escalate into strategic risk when:

• The pricing strategy is too aggressive

• The product requires frequent customization

• The product fails to meet market expectations and damages the firm’s image

• Too many internal stakeholders are involved

Ratio analysis in evaluating suppliers is most useful when:

• The supplier is already approved by a regulatory agency

• Items being purchased are low cost and non-critical

• The supplier is involved in long-term, critical, or high-value contracts

• Auditing is outsourced to third-party agencies

Customer pricing risk can often be caused by:

• Poor communication and inadequate contract verbiage

• Seasonal demand

• Carrier delays

• Product failure

Operational risks commonly span which two planning horizons?

• Strategic and tactical horizons

• Tactical and operational horizons

• Operational and strategic horizons

• Long-term and strategic horizons

Counterfeiting in the supply chain refers to:

• Imitating genuine products with fake or unauthorized copies

• Mislabeling products to increase prices

• Using recycled materials in production

• Creating new innovative products