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Managing Supply Chain Risk L5M2 Paper *3.
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1.
Which of the following approaches can an organization adopt to reduce or manage potential risks?
1. Transfer
2. Translate
3. Transition
4. Tolerate
2.
Which of the following components are essential to a supply chain's business continuity planning?
1. Awareness
2. Prevention
3. Control
4. Measuring
3.
What term describes a loss that is not directly traceable to the initial risk event?
4.
What measures should an organization take to avoid a risk it cannot afford to encounter?
5.
Which of the following represent strategic risks that could impact an organization’s long-term success? Choose the TWO most relevant
6.
What factors might contribute to the breakdown of a contract between involved parties?"
1. Changes within the contract not provided in the contract
2. Stringent contract terms
3. Period performance and contract management
4. Poor understanding of the implications of law
7.
Which of the following recognized standards helps organizations maintain consistency in meeting customer requirements for products and services?
8.
Which of the following are key guiding principles of ISO 31000? Select the THREE that are most applicable
9.
Which of the following risks are closely linked to a company's brand? Select the TWO that apply.
1. Positioning
2. Reputation
3. Perception
4. Value
10.
What is the most accurate definition of risk from the following choices?
11.
Which of the following are considered potential hazards 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
12.
Should an organization always evaluate its risk appetite before taking on any risks? Justify your answer
13.
Is it correct to say that procurement managers should always avoid risks in order to trade profitably? Explain your reasoning.
14.
A fire at a transport company's depot destroys its vehicle fleet. While the vehicles are insured and will be replaced over time, the company loses business in the short term due to its inability to fulfill customer orders. What is this loss of business called?
15.
Out of the following options, which represent types of direct loss? Select two
16.
Which of the following accurately describe the characteristics of 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
17.
Which of the following represents an internal risk within a supply chain?
18.
Which of the following are examples of fraud within a supply chain? Select the three most relevant.
19.
Do procurement managers have a significant role in ensuring the abolition of fraud within the supply chain? Explain your reasoning.
20.
What are some potential technology risks that a procurement organization might face?
1. Under-investment
2. Cyber-crime
3. Ransomware attack
4. Cargo theft
21.
Which of the following are considered pre-conditions for fraud within the supply chain? Select the TWO most relevant
22.
CBEF Manufacturers, a German mobile phone producer, sources its manufacturing inputs globally through an international sourcing strategy. Which factors could potentially impact their procurement process?
1. Language and cultural difference
2. Quality issues
3. Higher input prices
4. Exchange rate risk
23.
With a deeply integrated supply chain, ManCo Inc. ensures seamless data flow and transparency across all stakeholders. However, the Chief Procurement Officer (CPO) is concerned about the vulnerabilities this approach might introduce. Which of the following represents a technological risk for ManCo?
24.
What measures can a procurement manager implement to reduce exposure to currency risks?
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
25.
The primary focus of the Sarbanes-Oxley regulations is on...
1. Investor protection
2. Corporate financial disclosure
3. Clear commercial advertising
4. Product quality
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