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Module 3 / Section B / Chapter 3

Quiz by Charles Early

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5 questions
Show answers
  • Q1
    Which of the following is valid advice for contingency planners preparing for a potential business disruption?
    After assessing all potential risks, ensure that each supply chain activity has a plan for continued functioning regardless of the cost.
    Contingency plans are the responsibility of each departmental manager in addition to their regular duties.
    Protection against production disruptions should not rely solely on having extra stores of inventory.
    Create contingency plans for yourself and for your supply chain partners.
    60s
  • Q2
    An organization has the opportunity to win a large corporate client, but it needs a fleet of refrigerated trucks. What can the organization do to add this capability quickly without worsening their activity ratios or risking that ad hoc contractors will have insufficient capacity?
    Exploit the opportunity by purchasing a fleet of refrigerated trucks.
    Transfer the risk to an insurance company.
    Enhance the risk by getting contractors to commit to available capacity.
    Share the opportunity with a refrigerated delivery partner.
    60s
  • Q3
    An organization's information system infrastructure features various systems feeding into each other, allowing for some levels of data integration. Which is the next level of integration that the organization should plan to move into as it looks to improve upon the current system in a sustainable manner?
    Interfacing technology
    Disconnected technology
    Multi-enterprise integrated technology
    Internally integrated technology
    60s
  • Q4
    If the only plan an organization can devise to respond to a risk proactively would cost the organization more than the expected monetary value of the risk without any response, what should the organization do?
    Transfer.
    Accept.
    Avoid rather than respond.
    Mitigate rather than respond.
    60s
  • Q5
    Which of the following best describes what an organization's risk response plan should do?
    Balance risks in terms of probability, cost of occurrence, and cost of mitigation.
    Identify those risk costs that can shifted to a partner's portfolio.
    Eliminate risks by predicting their likely sources.
    Identify current risk-prone partnerships that should be severed.
    60s

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