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Managing Supply Chain Risk L5M2 Paper *1.
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1.
Which of the following accurately defines risk?
2.
Which of the following represent potential dangers or disruptions within a supply chain?
1. Probability of lost sales due to geopolitical threats 2. Transporting chemical containers to the buyer’s warehouse 3. Unsafe warehouse practices 4. Loss of stock due to poor security measures
3.
Is it true that assessing an organization's risk appetite is essential before taking any risk?
4.
Is it correct to say that procurement managers must eliminate all risks in their department to achieve profitable trading?
5.
A fire at a transport company's depot destroys its vehicle fleet. Although insurance covers replacements, the company faces immediate challenges in fulfilling customer orders, leading to lost business. This type of loss is referred to as which of the following?
6.
Identify the TWO correct examples of direct loss from the options below.
7.
Which of the following features best define an indirect loss?
1. Indirect loss cannot be easily quantified 2. Indirect loss can be easily documented 3. Indirect loss is difficult to insure against 4. Indirect loss requires a lot of money to insure
8.
What type of risk in a supply chain is influenced by factors outside the organization?
9.
Which of the following could be considered instances of fraud within a supply chain? Choose the three most relevant options.
10.
Can procurement managers significantly contribute to the eradication of fraud within the supply chain?
11.
What technological risks might a procurement organization encounter?
1. Under-investment 2. Cyber-crime 3. Ransomware attack 4. Cargo theft
12.
What are the two critical conditions that must be present for fraud to take place in the supply chain? Select the TWO that apply.
13.
What challenges might CBEF Manufacturers face when acquiring inputs through their international sourcing strategy?
1. Language and cultural difference 2. Quality issues 3. Higher input prices 4. Exchange rate risk
14.
ManCo Inc is a global manufacturing organisation. It has a highly integrated supply chain. All parties are interconnected with the result that data availability and transparency are high. ManCo’s CPO is particularly concerned about the technological risk this approach may cause. Which of the following is such a risk for ManCo?
15.
What strategic steps can a procurement manager implement to minimize the impact of currency fluctuations on procurement operations?
1. A buyer can the request to use its own currency 2. Insuring the goods that have to be transported 3. Using a forward exchange contract 4. Avoid fixing the rate of currency
16.
What is the main objective of the Sarbanes-Oxley regulations?
1. Investor protection 2. Corporate financial disclosure 3. Clear commercial advertising 4. Product quality
17.
Supplier insolvency can significantly impact contract performance. Which of the following are key factors that can lead to a supplier's financial failure? Select the THREE that apply.
18.
Which financial ratios are used to assess a supplier's ability to meet short-term liabilities with its available current assets, thus determining its financial stability?
1. Profitability ratios 2. Acid test ratio 3. Gearing ratio 4. Current ratio
19.
Should employees in the supply chain be encouraged to report unethical behavior through whistle-blowing mechanisms?
20.
A risk associated with brand reputation can affect which of the following areas within an organization?
21.
Which of the following standards is specifically designed for sustainable procurement practices?
22.
Is it mandatory to include a force majeure clause in every service contract with a supplier?
23.
What is the contractual clause called that helps reduce the risk of receiving defective products in a supply agreement?
24.
Is the statement correct that model form contracts are popular because they provide extra protections for suppliers?
25.
Which of the following represent various types of intellectual property protection?
1. Copyright 2. Indemnity 3. Insurance 4. Trademark
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why isn’t the answer to number 25 1 and 2
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