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Managing Supply Chain Risk L5M2 Paper *2.
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1.
Is it accurate to say that unforeseen events during a contract are classified as ‘force majeure,’ exempting all parties from liability?
2.
Which contractual clause would be applicable if a hurricane disrupted a factory's ability to manufacture and deliver goods?
3.
Which of the following is not a benefit of using a standard form of contract?
1. It is tried and tested so it is more predictable
2. It is innovative and cover the latest concepts
3. It balances the risk between the buyer and supplier
4. It is widely accepted by a particular industry
4.
How should best practice audits be carried out? Select the TWO most appropriate methods.
5.
Given that the procurement manager is responsible for a high-risk and medium-value contract with a critically dependent outsourced supplier, is requesting a disaster recovery plan appropriate in this scenario?
6.
TURNIT Inc., a chemical manufacturing company, employs a large number of staff, particularly in the production department. Due to health and safety risks, the company has insurance coverage in case an employee makes a claim for a work-related injury or disease. What type of insurance is TURNIT Inc. using?
7.
Which type of insurance would be activated in the event of damage to the supplier’s premises and property?
8.
Which of the following are the key phases of a contingency plan? Select the THREE that apply.
9.
In a contingency plan, which of the following measures is implemented days after a disaster has significantly disrupted the organization's operations?
10.
Max Company has included a force majeure clause in its contract with a customer for managing logistics operations. Which of the following scenarios would be considered a force majeure event?
11.
Is it correct that the principle of utmost good faith is fundamental to contracts for the provision of insurance?
12.
Which of the following are considered external risks that may influence the organization’s performance? Select the THREE that apply.
13.
Which of the following approaches are used to evaluate the risks that could affect the supply chain?
1. Probability
2. Intensity
3. Impact
4. Mitigation measures
14.
Which type of distribution is used when there are only two possible outcomes?
15.
Which type of probability distribution focuses on the probability of discrete events with just two possible outcomes?
16.
Company A is focused on managing risk more effectively, and the management team has chosen to use a risk probability/impact matrix. The purpose of this matrix is to plot...
17.
Which of the following statements are true about the concept of ‘normal distribution’? Select the THREE that apply.
18.
Which of the following approaches does the organization use to identify and document potential risks that could affect its operations?
19.
Why is it crucial to assign a risk owner when recording an identified risk in a risk register?
20.
What strategies can an organization adopt to enhance its structural flexibility and adapt to changing circumstances?
1. Asset sharing
2. Asset loaning
3. Rapid manufacturing
4. Inventory control
21.
Which of the following are established and widely accepted frameworks or standards for effective risk management
1. ISO 14001
2. ISO 31000
3. ISO 26000
4. ISO 28000
22.
Which of the following practices are critical to quality control in order to mitigate the risk of an organization providing inferior products to its customers? Select the three that are most applicable
23.
Which of the following standards demonstrates an organization's commitment to implementing systematic security management to safeguard its customers?
24.
"In an organization or company, risk ownership should be assigned to..."
1. A risk manager regardless of position or level
2. A senior level of management within the company structure
3. The individual that initially identified the risk
4. Individuals with the authority to take actions
25.
What is the purpose behind an organization externally reporting its risks in the corporate accounts?
1. Reporting risks on external accounts helps in improving supplier relationships
2. Reporting risks on external corporate accounts ensures a high level of transparency in the organisation’s operations
3. Reporting risks on external corporate accounts attracts potential investors
4. Reporting risks on external corporate accounts ensure the organisation’s controls face closer scrutiny
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