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Managing Supply Chain Risk L5M2 Paper *9.
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1.
In the event of a fire destroying a transport company's vehicle fleet, where business is lost due to the inability to fulfill orders, this type of loss is known as:
2.
Which of these is an established standard for sustainable procurement?
3.
Which of the following is most likely to be impacted by a brand-related risk for an organization?
4.
Which ratio is used to evaluate a supplier's ability to meet its short-term liabilities using current assets, thereby assessing its financial risk?
1. Profitability ratios
2. Acid test ratio
3. Gearing ratio
4. Current ratio
5.
Should employees in the supply chain be encouraged to report unethical behavior through whistleblowing if they suspect wrongdoing?
6.
Following a cyber-attack that caused production stoppage, a glass manufacturer seeks better risk management. Which of the following suggestions would be suitable for their situation?
7.
A planned risk strategy development process is part of the overall risk management process. An internal stakeholder asserts that assessing risk appetite should be done at the end of the risk strategy development process. Is this claim valid?
8.
Which of the following actions by the procurement function can help address supplier risk?
1. Due diligence checks via pre-qualification
2. Supply chain and contract management
3. Undertake any external supply chain audits
4. Manage all supply chain risk registers
9.
Given that Sofee is an online seller of soft toys, with 11 office staff and 28 warehouse staff handling deliveries and orders under contract, which policy would be most suitable for conducting risk assessments and maintaining risk registers?
10.
What would be most effective in helping to create a strong risk management culture in an organization?
11.
Given four situations requiring the assessment of risk impact, which one is the most difficult to accurately assess using traditional methods?
12.
For a high-tech aerospace engineering company that checks parts to tight tolerances and tests them before shipping, which statistical test should be applied to historical data to calculate the probability of parts meeting or failing tolerance requirements?
13.
After agreeing to purchase goods in a foreign currency, OPS faces an increased cost due to currency fluctuations. Although current customer orders will be honored at the original price, future prices will rise. Which of the following is correct regarding this situation?
14.
As organizations establish contingency plans for supply chain disruptions, which of the following represents a common challenge in creating such plans?
15.
In the process of creating a contingency plan for supply chain failure, which of the following is a potential challenge?
16.
Following a fire at a printed goods manufacturer's production facility, which of the following are classified as indirect losses? Select TWO that apply.
17.
In a scenario where a procurement buyer agrees to a fixed-fee contract for company searches, but uses the software for personal purposes, such as searching suppliers for his house extension, would this constitute fraud against the employer?
18.
Following a fire caused by an employee's error at a large bakery, where the oven was left on overnight, which of the following represent direct losses to the bakery?
1. Property
2. Reputation
3. Productivity
4. Stock
19.
In the case of a supplier accused of colluding with other suppliers, which actions might contribute to fraudulent collusion against a business?
1. Staff using a stolen credit card to buy from e-commerce businesses
2. Over-depreciating company assets to sell them to a customer below market value
3. An individual falsifying supplier invoices and pocket the extra payments
4. Issuing extra non-ordered goods to a sub-contractor for a share of the profit
20.
What are some of the international standards for risk management?
21.
Which goals does the Sarbanes-Oxley Act 2002 seek to achieve?
22.
By choosing the New Engineering Contracts (NEC3) as the contract for a major building project, can the local council mitigate risks associated with potential project failure?
23.
TML, an international food producer, is conducting a risk assessment of its supply chain with the help of stakeholders to identify and evaluate potential risks. One risk identified is contaminated fish entering the supply chain through a supplier. Given the severity of the potential consequences, which risk responses would be most suitable for this situation?
1. Ignore the threat due to the low probability of contaminated fish entering the supply chain
2. Monitor the risk and take action against the supplier if the problem occurs
3. Work with the supplier to further reduce the probability of the risk occurring
4. Plan to ensure that if contaminated fish enters the supply chain, it is identified and removed.
24.
According to ISO31000:2009, what are the fundamental principles that ensure risk management is effective within an organization?
25.
Underwriting by insurance companies involves which of the following procedures? Select THREE that
